Abu Dhabi, United Arab Emirates - A recent survey on the region's airport construction and the industry's expansion has placed Abu Dhabi International Airport's US$6.8bn master plan as one of the largest airport developments by investment among the Gulf countries, Jordan, Iraq, India, Sri Lanka and across the African continent.

Abu Dhabi International Airport

The survey, conducted by Streamline Marketing Group and organizers of the Dubai Airport Show, showed that the pattern of regional airport expansion was being fuelled by strong economic growth and the rapid development of Gulf countries' state-owned airlines, in particularly, Abu Dhabi's Etihad Airways.

The Airport Expo Dubai is set to run from 2 - 4 June 2008 with Abu Dhabi Airports Company (ADAC), the owner-operator of Abu Dhabi and Al Ain International Airports, confirming yesterday that it will have a major presence at the show and will be showcasing its latest development plans.

Taking its place alongside 550 other exhibitors from around the world, ADAC will be part of a number of airport developers and aviation authorities from across the Middle East, Africa and South Asia region – each experiencing unprecedented rates of growth.

With numerous projects and expansions now valued at over US$68 billion, the Gulf countries are estimated to account for $43 billion of this growth with $21 billion of development under way in the UAE alone.

The projected increase in commercial air traffic and tourism to the region has been a factor in prompting heavy government funding for such infrastructure projects.

Mohamed Al Bulooki, Director of Marketing and Communications, ADAC, said: "The show is of particular interest to us this year as we plan to use the event to explore and source new technologies, explain our future expansion plans and brief industry suppliers on our procurement policies and how they can do business with us."

"Some of the best airports in the world, with the latest airport technology, systems and security are being constructed in this region," added Bulooki.

"In fact, the Middle East and North Africa [MENA] region will witness the largest growth in aviation industries in the world between 2008 and 2011 – almost 40 per cent more growth than the global average," said Bulooki, citing recent research by the International Air Transport Association (IATA).

"Abu Dhabi is set to benefit from the region's aviation growth, due to its strategic position between East and West, and will become one of the most important aviation hubs of the future. The Airport Show, therefore, is a clear platform from which we can initiate contacts with top-level representatives of airports around the world," he added.

To support the Government of Abu Dhabi's tourism, business, investment and overall development drive, the large-scale development program – or "master plan" – has been set in motion to transform Abu Dhabi's airport into a world-class facility.

Addressing both short and long term needs, the master plan will allow the airport to grow up to and beyond 40 million passengers as well as handling over 2.5 million tons of cargo per annum in the future. By the end of 2011, the airport proposes to be able to handle up to 20 million passengers per annum, a six fold growth compared to its original design capacity (Terminal 1 only) of 3.5 million.

Later this year, a third terminal capable of handling an additional five million passengers a year will open. Terminal 3 will be for exclusive use of Eithad Airways and is an interim facility that has been developed to meet the UAE national airline's growth until the Midfield Terminal, the centre piece of the airport's redevelopment, comes on stream at the end of 2011.

Supporting these developments, a new 4,100m second runway and a new Air Traffic Control Complex (ATCC) will become operational in 2009, along with a new cargo terminal – due for completion in 2010. The master plan also has provision for a four million square metre airport free trade zone and a host of other commercial development projects.

Currently 37 airlines operate from Abu Dhabi International Airport, and with four new airlines having already come on board since the beginning of 2008, growing interest from a range of other airlines eager to capitalize on location of the capital of the UAE is expected.

"The expansion program will enable Abu Dhabi to cater to an anticipated surge in passenger traffic, estimated between 15 and 20 million by 2015," said Al Bulooki. Passenger traffic grew by 31% at Abu Dhabi Airport in 2007 with 2008 showing no signs of a slow down. First quarter results in 2008 demonstrate a 35 percent increase in passenger traffic over the same period in the previous year.

The rapid growth of passenger traffic has largely been anticipated by many regional aviation hubs, hence the efforts going into the region's airport development; however, there are challenges and while record oil prices and booming regional economies have enabled Middle East governments to allocate billions of dollars for infrastructure development, Airbus estimates that Middle East and African airlines will require 1,016 new aircraft, worth US$ 124 billion, over the next 20 years – so investment will need to be steady through economic conditions outside of a boom.

With an expected budget surplus of US$50 billion and a current account surplus of over US$100 billion for the six Gulf States alone, spending is set to continue over the medium to long term.

To place the developments in context, economists have estimated that there is currently US$650 billion worth of active projects in the Gulf, with another US$650 billion announced but not yet begun.