FlyDubai and Flights to Dubai

Dubai’s spending spree continues with its recent purchase of five 189-seat Boeing 737-800s. The low cost, no frills budget airline FlyDubai plans to launch in mid 2009 and initially serve the Gulf states i.e. Bahrain, Kuwait, Qatar, Oman and Saudi Arabia and surrounding areas.

FlyDubai plans to have a total fleet of 54 aircraft by 2015, which exceeds its rival the well established Air Arabia, which in 2003 became the region’s first low-cost carrier and now operates 14 A320s. Sharjah based Air Arabia, resides in the emirate next to Dubai which has positioned its airport – Sharjah International Airport, as a low-cost hub. Additionally, FlyDubai will compete against Jazeera Airways, which is based in Kuwait but also has a mini-hub in Dubai. Jazeera Airways currently operates 6 A320s but has purchased a further 34. Two other low cost carriers have entered the competition markets but spectators say FlyDubai is the most determined and could attract Abu Dhabi to launch a low cost carrier equivalent too.

FlyDubai plans to serve those who require more destination choice and of course a competitively priced ticket. Many expats based in Dubai and surrounding emirates find the major airlines too pricey with popular destinations difficult to purchase during peak times. With this in mind, FlyDubai will initially serve about 12 destinations within a 5 hour range of Dubai providing access to 2 billion people.
Initially, FlyDubai will have the assistance of Emirates Airlines, who by the way do not own the budget airline, during launch phase but by the beginning of 2010 they aim to be completely independent.

As with most low cost carriers, FlyDubai will follow same method for charging of food and checked bags. It will be based at the new Al Maktoum International Airport in Jebel Ali which when built completely, will be the world’s largest passenger and cargo hub capable of handing 120 million passengers, double that of London Heathrow and 10 times larger than Dubai’s existing airport.
It is planned that the first of six runways will be ready in time for FlyDubai’s launch mid 2009 with the airport in basic operation and minimal facilities available. The airport and surrounding area plans to be fully operational by 2017.

Al Maktoum International Airport or JXB will be managed by the newly established Dubai Airports company, and its cost is estimated at USD8.1 billion. As with most of the UAE’s new developments, a fully operational city will be built around the airport initially named as Dubai World Central aviation complex.
JXB will have six parallel runways, numerous concourses and be fully capable of handling all sizes of aircrafts i.e the mega A380. Of course it will have stunning hotels and malls.
The two bosses behind this huge project are not short of aviation experience. Gaith Al Gaith, FlyDubai’s CEO worked for Emirates Airlines for 21 years as Vice President for Commercial Operations. Kenneth Gile is the COO and has been in the aviation industry his entire career starting with Saudi Arabian Airlines, Southwest and recently Skybus.

FlyDubai Official Website

Video about Dubai

This video about Dubai demonstrates what was in planning stage to come to fruition from now onwards. Some of buidings in this video you will recgnise, some you will not know, but will have heard of. Dubai continues to transform. It's like pressing fast forward on your DVD player.

Dubai Redundancies

Can you imagine a news article that leads with this. The FT does just that today:

DIC cuts workforce in rare Arab redundancies

Dubai International Capital has trimmed a 10th of its staff as it retrenches its global equities exposure and redoubles efforts to boost its presence in Asian emerging markets. The investment vehicle of Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum has restructured its global equities fund in the wake of world economic turmoil, and cut two senior executives from the team. DIC also shed five staff from its emerging markets division as it makes way for the arrival in November of Alykhan Nathoo, a founding member of Bain Capital Europe.

But the real story is a refocus of investment:

DIC will focus on the Indian subcontinent and the Middle East – two areas that the company believes will deliver better returns as the world slips towards recession.
The company says it remains committed to its area-specific funds, targeting China and Saudi Arabia, launched before the credit crunch hardened this month.

In times of hardship, one must invest where there is growth.

Sponsorship, Credit Crunch, Premiership Football & the UAE

Back in 2006, who would have thought that AIG would become a brand synonymous with a market crash associated with sub prime mortgages. Manchester United, at the time, picked AIG to be their sponsor above Etihad.



What has happened in the last month? AIG has crashed. Manchester United bought Dimitar Berbatov for a record price second only to Robinho's world record signing and salary. Robinho was signed by Manchester City who were also interested in Berbatov, and have been taken over by Abu Dhabi United Group. Yesterday Berbatov broke his goal scoring duck with a fine display in the Champions League game against Aalborg.

And Dubai, Dubai had been interested in Liverpool and had their offer for Newcastle thrown out.

And Etihad, well Etihad are now a quasi sponsor of Chelsea.... Football - it's a funny old game!

UAE Unemployment

Is it really something that we can believe? With all the expats, with all the emiratisation policies, can there really be unemployment in the UAE? Can you consider that Emiratis are out of work, not through choice? Apparently so, and the Beit Al Khair is trying to help:

Compared with the travails of migrant workers in the United Arab Emirates, Emirati poverty is nothing. But deprivation does exist and it stems from social problems. Most Emiratis who need help are widows, divorcees, orphans, disabled people, the ill and infirm, or the families of prisoners. Divorce in particular is soaring.

Most Emiratis seek help in the first instance from their extended families. But last year Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai and prime minister of the UAE, doubled subsidies available via the ministry of social affairs.

“The government has moved very fast,” says Mohamed Bakkar bin Haidar, general manager of the Beit Al Khair Society, a charity that provides for UAE nationals. “We cannot say that we don’t have any poor in the UAE; that also would be unfair. But we can say that we have the least.”

And as you can see, the problems are more than just unemployment. All societies have social problems. And that includes the UAE.

Life on the dole in the UAE

UAE Credit Crunch Turmoil

The last month has proved that even the Abu Dhabi and Dubai are not immune from the credit turmoil hitting the Gulf. We live in unprecedented times. Whether there is 100 years worth of oil in the ground, if you invest in Western institution on the brink, you are exposed. If you tie your currency to the West, you are exposed. If you do business with the West, you are exposed. My friends, we live in a globalised world, in troubling times:

The UAE and Qatar, two GCC states seen most likely to revalue, have been badly affected as investors realise that the strengthening dollar has removed pressure on central banks to unpeg or revalue.

Central banks have also started to remonstrate with local banks, who had been only slightly marred by subprime exposure, for unhealthy overexposure to real estate, especially the frothy property market in Dubai. For the first time in years, fears of a slowdown in Dubai’s real estate market seem more real.


Gulf dispatch: Gulf discovers that it is not immune from the turmoil

Abu Dhabi Grand Prix '09

Following the success of Grand Prix’s first ever night race in Singapore on the weekend, Abu Dhabi looks on and prepares for the inaugural Abu Dhabi Grand Prix next year.

It’s not a surprise to read that whenever the UAE buys into a brand, they not only copy it perfectly but improve it- insanely. This is evident with recent projects such as the Atlantis Palm, and even educational institutions such as the Paris – Sorbonne University in Abu Dhabi. Projects in the pipeline such as The Guggenheim and the Louvre are being designed in such a way to attract visitors not only to the museum but to the surrounding facilities such as entertainment, shopping and housing thus creating a modernised village around the brand. This is the obvious intention with the new Grand Prix Abu Dhabi development. The circuit is being built on one of Abu Dhabi’s natural islands – Yas Island and will include a Ferrari theme park, a water park, branded hotels, a huge retail complex and apartments and villas.

Like the majority of developmental projects in UAE, the Formula 1 Etihad Airways Abu Dhabi Grand Prix complex will use the brand to not only build a new race track but further create a village full of entertainment and living means. Because the racetrack is being built from scratch, much thought has gone into its design and practicality allowing the creation of both a street and permanent circuit. There a handful of permanent circuits in the world and Abu Dhabi will be one of them.

Taken from the official Formula One website, covering the announcment of the Abu Dhabi Grand Prix:

In a first for Formula One racing, the challenging circuit by renowned circuit designer Hermann Tilke combines a non-permanent section that will deliver all the drama of a street circuit with a high-speed permanent race track that incorporates a marina and state-of-the art stadia. The distinctive design will allow yachts to berth alongside the track as it wraps itself around the marina, giving the Abu Dhabi race its own unique identity.

The website further states that 15,000 people are due to be working on the site during 2008 in order for successful completion in 2009.

A provisional date for first race of the Abu Dhabi Grand Prix is 15 Nov 2009.

Formula 1
Abu Dhabi Grand Prix

Eid Al Fitr in Dubai and Abu Dhabi

The moon sighting committee has spoken and the first day of Eid will be celebreated today, in the UAE.




“It has been determined that Eid begins on Tuesday,” said Dr Hadef bin Jua’an al Dhaheri, the Minister of Justice, at the official announcement after last night’s meeting of the Shawwal Crescent Committee.

UAE marks Eid al Fitr today
Tuesday is first day of Eid Al Fitr in UAE and Saudi Arabia

Eid Mubarak to one and all

Temporary Economic Slowdown in Dubai

Advice from the FT:

How long before the financial crisis and economic slowdown will affect Dubai? When do you think the Dubai property bubble will burst?
Yves G. L. Wolters, London

MM: The financial problem in the U.S. has already impacted the Dubai market with stock prices down from their previous highs. As a result of that financial crisis, credit markets in Dubai have become tight. We therefore should expect difficult conditions temporarily.

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