Dubai transport sector (including also storage and communications) represented 13% of Dubai total GDP in 2005. The sector recorded extraordinary 20% growth rate in 2005 compared to the previous year, situating itself among the most growing economic sectors in the Emirate. Dubai transport sector employs nearly 7% of Dubai total workforce.
Given the importance of the transport sector in Dubai, DCCI conducted a research to highlight the recent developments witnessed in the sector during the latest years and how they affected the movement of goods and passengers as well as foreign trade.
Sea Transport
The quantity of goods discharged at the two main sea ports of Dubai (i.e. Rashid and Jebel Ali ports) has increased by almost double during the period 2001-2005 at annual growth rate of 18.7%. In 2005, the quantities of discharged goods totaled 58.1 million tons of which 57% are containers, 22% are petroleum and 21% are general goods. On the other hand, the quantities of goods loaded were estimated at 34.4 million tons doubling almost by that its value in 2001 of 17.5 million tons. The shares of containers, petroleum and general goods in goods loaded were 76%, 18% and 6% respectively. It is obvious that containers represent the majority of goods loaded and discharged followed by petroleum and general goods. More specifically, 67% (53%) of loaded (discharged) containers are classified as transit shipments while the rest are registered as exports (imports), which reflect clearly the importance of Dubai as a re-export hub.
Similarly, passengers’ movement in Dubai sea ports has also witnessed notable growth between 2001 and 2005. The number of total passengers in 2005 reached around 77 thousand (of which 50% are arrivals and 50% are departures) showing an increase of 70% compared to 2001. This increase is mainly attributed to increase in number of arrivals (from 13.8 thousand in 2001 to 38.6 thousands in 2005) given that growth in number of departures was much lower (22%).
Air Transport
The total number of aircrafts landed at Dubai international airport in 2005 was almost 217 thousand, which represents a growth rate of 62% compared to year 2001. The landed aircrafts can be divided into three categories: 83% scheduled flights, 14% non-scheduled flights, and only 3% military aircrafts. The number of scheduled flights grew on annual growth rate of 12% during the period 2001-2005.
On one hand, passengers at Dubai international airport in 2005 were 24.8 million of which 49% are arrivals, 48% are departures, and only 3% are transit passengers. This figure represents a growth of 84% in total number of passengers compared to 2001. On the other hand, cargo movement at Dubai international airport in 2005 totaled 1.3 million tons of which 53% were discharged goods and 47 % were loaded goods. More interesting, both discharged and loaded goods doubled their quantities in five years period, which logically resulted in almost doubling the total cargo movement at Dubai international airport.
Land Transport
Dubai has paid special attention to continuously improve its roads and land transport. For instance, the length of total asphalted roads in Dubai (i.e. single and dual carriageway) has reached 2,998 kilometers in 2005 compared to 2,177 kilometers at the beginning of 2001 (i.e. 38% growth). Despite this remarkable development witnessed in roads, the number of trucks departing from Dubai to neighboring countries has not improved. In contrast, it dropped by -18% between 2001 and 2005.
The fact that Dubai trade by land transport is not improving –despite the huge increase in roads and land logistics– combined with the significant improvement witnessed in movements of goods and passengers by sea and air leads to the conclusion that trade by sea and air are still the most preferable ways of transport for both goods and passengers. Land transport is important mainly for Arab countries located in the vicinity. In 2005, Arab countries were the destination of the vast majority of trucks departing from Dubai (97%), of which Gulf Cooperation Council countries (GCC) share is considerable (61%). In addition, Jordan, Iraq and Yemen top the list of Arab countries destined by trucks departing from Dubai.
Transport and Foreign Trade
Maritime shipment is still the main gate for Dubai foreign trade. Dubai foreign trade by sea stood at AED 152 billion in 2005 representing 54% of total foreign trade. Air transport comes in the second place to take care of 43% of Dubai total foreign trade. Dubai foreign trade by land has been very limited and represented only 3% of total foreign trade.
Between 2001 and 2005, developmental investments by Dubai government reached almost AED 11 billion. This substantive amount of investments affected foreign trade positively. Specifically, Dubai total foreign trade increased by almost 150% between 2001 and 2005, from AED 112 to 280 billion. Its share relative to Dubai total GDP also increased from 170% to 200% during the same time period.
