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Dubai International Airport has retained its crown as the world’s busiest for international travel, marking a record year for global aviation. Meanwhile, Dubai’s red-hot property market faces mounting pressure from global tariff tensions and a slump in oil prices, Bloomberg analyses. Across the border, Saudi Arabia is charting a bold new path—shifting its investment appeal from oil to talent, according to Minister Khalid Al-Falih.

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Dubai International Airport Retains Title As World's Busiest For International Travel In 2024

📰 What is it about?

• Dubai International Airport (DXB) extended its lead as the world’s busiest international airport in 2024, according to the latest report by Airports Council International (ACI).

• DXB handled 92.3 million international passengers, marking a 6.1% increase from 2023.

• It was followed by London Heathrow and Seoul Incheon, with Singapore Changi and Amsterdam Schipholrounding out the top five.

• Overall global air travel surged in 2024, reaching 9.5 billion passengers — a 9% increase year-on-year and 3.8% above pre-pandemic levels in 2019.

💡 Why it matters?

• DXB’s performance underlines the UAE’s growing status as a global aviation and tourism hub, with Emirates Airlines playing a key role in driving traffic.

• The strong rebound in air travel reflects increased consumer confidence, lifted travel restrictions, and robust demand for international connectivity.

• ACI’s Director General Justin Erbacci praised major airports’ resilience and economic significance, calling them “vital arteries of trade, commerce, and connectivity.”

🔜 What’s next?

• Despite the momentum, ACI forecasts a slowing growth rate for 2025, projecting 9.9 billion air travelers globally amid growing economic uncertainty, geopolitical tensions, and airline capacity constraints.

• In overall passenger traffic (including domestic), Atlanta Hartsfield-Jackson remained the busiest airport in the world with 108.1 million passengers, ahead of Dubai and Dallas-Fort Worth.

• Hong Kong International Airport retained its crown as the busiest cargo airport, handling 4.9 million metric tonnes, followed by Shanghai and Memphis.

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Markets

Dubai’s Property Boom Faces Major Test Amid Global Tariff Turmoil And Oil Price Slump: Bloomberg

📰 What is it about?

• Dubai’s property market, which has surged nearly 70% over the past four years, is now facing growing headwinds from global trade tensions and a drop in oil prices.

• The recent tariffs imposed by U.S. President Donald Trump, including a 145% levy on Chinese goods, have rattled markets and triggered a downturn in crude prices, which fell below $65 a barrel.

• This has darkened the economic outlook for Gulf oil producers, including the UAE, and sparked concerns over a slowdown in high-end real estate demand from international buyers.

• While developers like Binghatti Properties report continued strong sales, analysts caution that the combination of weaker oil, slower China growth, and rising geopolitical risk could weigh heavily on Dubai’s property outlook.

💡 Why it matters?

• The property boom has been a pillar of Dubai’s post-pandemic economic recovery, drawing in wealthy investors from Russia, China, and crypto-rich buyers.

• Real estate values soared 69.8% from November 2020 to December 2024, supported by Dubai’s pandemic response, liberal visa reforms, and safe-haven status.

• However, the market now faces vulnerabilities due to its dependence on international capital, and signs of buyer resistance are emerging, with price growth cooling to 16% in 2023 from 20% the previous year.

• A prolonged drop in oil could hit expat job creation, government spending on infrastructure, and business expansion — all key drivers of Dubai’s real estate demand.

• Leading developers like Emaar Properties PJSC and Aldar have seen their stocks drop over 10% and 5% respectively since the tariffs were announced.

🔜 What’s next?

• While Golden Visas and currency advantages from a weaker dollar offer some insulation, economic uncertainty in China, budget cuts in Saudi Arabia, and potential currency devaluations globally pose medium-term risks.

• Goldman Sachs warns that Saudi Arabia’s budget deficit could swell to $67 billion, which may impact firms operating from Dubai and reduce construction-related hiring.

• Analysts are watching whether foreign investors delay or cancel deals, particularly as volatility spreads across global markets.

• Despite ongoing developer confidence, experts warn of “known unknowns” that could shift the balance for Dubai’s overheated real estate market in 2025.

Saudi Arabia Pivots From Oil To Talent As Key Investment Magnet, Investment Minister

What is happening?

• Saudi Arabia is undergoing a strategic investment transformation, shifting focus from its natural resources to human capital as the key driver of growth, according to Investment Minister Khalid Al-Falih.

• Speaking at the Human Capability Initiative (HCI) 2025 in Riyadh, Al-Falih emphasized that talent is now the top priority for attracting global investment.

• The Kingdom’s new approach links education, skills development, and economic growth, positioning human capability as a central pillar of its Vision 2030 agenda.

• He highlighted the surge in foreign direct investment (FDI), regional HQs, and international academic partnerships—such as the University of New Haven’s entry into Saudi Arabia—as proof of this new strategy.

Why it matters:

• This pivot signals Saudi Arabia’s evolution into a knowledge-based economy, reducing dependence on oil and expanding global investor confidence in its workforce and infrastructure.

• FDI flows have quadrupled, foreign-backed employment rose 40%, and Saudi employment in those firms has doubled in the past decade.

• The number of regional HQs has grown from 5 to over 600 since the launch of Vision 2030—making Saudi Arabia a rising business hub for international firms.

• The focus on lifelong learning, resilience, character building, and private-sector collaboration reflects a global best-practice approach to workforce development.

What’s next?

• Al-Falih predicted that in the next decade, Saudi Arabia will be a leading global destination for investment, driven by talent and an ecosystem promoting continuous learning.

• Human Capability and Learning Week, running through April 16, aims to solidify this direction with over 100 panels, 300 global leaders, and new policy initiatives.

• The shift to talent-first economics is expected to transform how international investors and institutions engage with the Kingdom in education, business, and innovation sectors.

🔍In other news…

• Dubai woos Indian property investors as it aims AED1 trillion transactions, says DLD official.

• Abu Dhabi authorities impose $12.46 million fines on firms, ban CEO for 'breaches, misconduct'.

• UAE travelers will soon get to pay using Jaywan cards on overseas trips.

• It’s good to shed the light on the amazing entrepreneurs and startups being launched here in Saudi Arabia: SVC chief.

• Travel, tourism sector accounts for 11.4% to Gulf's GDP: GCC-Stat.

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