PESTE Analysis of Dubai International Airport and its Achievements

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2018
Dubai Airports Company

Table of Contents
Introduction................................................................................................................................2
PESTE Analysis of Dubai International Airport Affecting the Development in future............2
Political Factors......................................................................................................................2
Economic Factors...................................................................................................................2
Social Factors.........................................................................................................................3
Technological Factors............................................................................................................3
Environmental Factors............................................................................................................4
Why PAX chose the Dubai Airport?..........................................................................................4
Who are the frequent flyers to Dubai International Airport?.....................................................4
Strategies adopted by the local authorities to make the Dubai International Airport a leisure
spot.............................................................................................................................................5
Successful products and services that has made Dubai International Airport a popular travel
destination..................................................................................................................................5
Achievements of Dubai International Airport............................................................................6
Why people choose Dubai International Airport?.....................................................................6
Layout and infrastructure of Dubai International Airport..........................................................7
Financial Performance...............................................................................................................7
References................................................................................................................................10

Introduction
Dubai International Airport is one of the largest airports in the Middle East and a largest
cargo hub in the region, the growth of the airport has been appraisable by the people all
around the world as it handles more than 70 million customers every year. The airport has 3
terminals out of which terminal 1 and terminal 2 are used for all airlines and charted planes
but the terminal 3 is dedicatedly given to the Emirates Airways as it has been hugely profited
by them (Biswas, 2018). Emirates currently account for 51 per cent of the airport’s passenger
traffic and fly Dubai has 13.2 per cent. Fly Dubai could now operate some flights from
Emirates’ Terminal 3, but most of its flights will stay at Terminal 2 after a study found it was
not feasible to collocate the two airlines.
PESTE Analysis of Dubai International Airport Affecting the Development in future.
Political Factors
There are no political parties in UAE however that really does not mean that the country does
not indulge into politics. The debate says that the oil producing countries who are getting the
oil rent are not working to increase the productivity or the efficiency but the case is totally
opposite for UAE and Dubai. The major dispute is with Iran over the three islands and
therefore the crowd moving towards the Iran is low as compared to the other countries.
Moreover, earlier there was a political instability in the Middle East which took a toll on the
airline so the region. Egypt, Tunisia and Libya account for about 20 per cent of the region's
international passenger traffic but all three countries have recently experienced, or are in the
midst, of major political upheaval (Khaleej Times, 2018). Now the situations are stable and
the Abu Dhabi’s 100 billion barrel of the oil reserves is regularly complimented majorly by
logistics and the aviation industry.
Economic Factors
Economic factors reflect the organisational performance as well as the economic
development of the country. The GDP is 3.4% of the country in the year 2017 and the
inflation is 1.4%. Dubai’s main revenues are from tourism, real estate and financial services.
Revenues from petroleum and natural gas contribute less than 6% of Dubai's economy. Real

estate and construction, on the other hand, contributed 22.6% to the economy (Arabian
Business, 2014). The local government should focus on development of the airport which
may result in greater economic importance within the area. As a result the airport will be
benefitted and the operational execution of air terminals is identified with the monetary
development in the nation in which it is found. Global business and exchange movement is
likewise required for the achievement of an airplane terminal. Customs duties are low at
4% with many exemptions, 100% repatriation of capital and profits is permitted. No foreign
exchange controls, no trade barriers or quotas, competitive import duties 4%with many
exemptions (Arabian Business, 2014).
Social Factors
Social environment of a region plays a vital role in the success of the organisation, changes in
such environment affects the industry directly or indirectly. The changes may be positive or
negative which me affect the trade at the airport. Almost 80% of the population in of the
UAE are non-nationals. This is one of the most dramatic defining characteristics of the
overall structure of the demographic environment. The total population of UAE is 5.066
million and globalization is gradually increasing resulting in a mix of many different cultures
within the Emirates (Ziadah, 2018). The Arabs want to work in the public sector and
therefore the employment sector is growing and the opportunities are developing in the
tourism and travelling industry. The DXB is situated at the most reachable situation and the
transport facility is also available.
Technological Factors
The airline industry has been widely affected by the technological changes that are taking
place in the world. Technological changes are great concern for the airline industry. The local
government of the region are now spending more on research and development for the latest
technology, the government is now also making efforts with other countries for the transfer of