KPMG’s Avtar Jalif comments on what to expect from the aviation sector in the UAE

Aviation shapes the economic and social landscape of the region, and the UAE in particular. The airlines in the UAE have managed to address headwinds during 2019 resulting from a potentially challenging economic and geo-political regional and global backdrop, by strategically moderating their fleet capacity, driving traffic through Dubai and Abu Dhabi and taking advantage of comparatively low fuel prices.

These strategic moves will continue to shape their business models in 2020 and the coming years. The sector should benefit from a significant boost in passenger flow through the UAE during EXPO 2020 and alignment of fleets, operations and networks as new airport capacity comes on stream, such as the new Mid-field terminal at Abu Dhabi Airport and Dubai World Central in Dubai.

The UAE airlines are also focused on seeking gaps in the market, such as the recent announcement of the launch of an Abu Dhabi-based budget carrier jointly by Etihad Airways and Air Arabia.

The Dubai Airshow always brings together deep, global expertise to enable the sector to embrace and drive the future. This gathering is critical for all sector stakeholders, more so given the continued exponential impact of technology on all aspects of aviation and the shifts in the global economic backdrop.

By Avtar Jalif, Partner at KPMG Lower Gulf.