Gulf Cooperation Council (GCC) countries are expanding their airports in anticipation of a tourism-led increase in passenger numbers, according to a new report from Fitch Ratings.
The GCC is brings together Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE to further political and economic integration amongst them.
The countries have set ambitious goals for the tourism sector to help reduce their dependence on oil. The GDP contribution from the tourism sector is expected to more than double from around $130bn in 2023 to around $340bn by the end of the decade. This would be equivalent to more than 10% of GDP in the region.
The aviation industry is set to play an essential role and Fitch Ratings expects air passenger traffic in the region to show ""material growth"".
""A sample of GCC airports showed that traffic in 2023 was 8% above 2019 levels and was up by about 20% from 2022. Infrastructure plans expect air traffic to double by 2030,"" the report read.
It noted that both the UAE and Qatar have ""invested heavily"" into their airports over the past few decades. In addition, Saudi Arabia has facilitated population and tourism growth, driven by its expanded investment in its airports.
This year, Dubai also launched a $35bn investment plan to expand the Al Maktoum International Airport's capacity to 260 million passengers per year.
Fitch added: ""GCC countries would have access to a wider pool of investors and longer-term financing options by tapping into bond and sukuk markets, which could help to finance large projects.""
GCC countries expand airports to meet tourism growth
