A Dh1 billion (US$272.3 million) investment has been secured for Dubai World Central, the “aerotropolis” taking shape on the edge of Dubai.

DUBAI - JULY 1,2010 - Emirates airplane taxi on the run way of the Dubai World Central - Al Maktoum International airport. ( Paulo Vecina/The National )

The cash will pay for the first phase of development of the aviation district, designed to attract international businesses in aeronautical services and light manufacturing.

It will also pay for the relocation of the Dubai Airshow 2013 to the district from the existing site at Dubai International Airport. The move to a bigger site is likely to add thrust to the show’s growing international profile.

“Dubai World Central is an integral component of the strategic vision of Dubai Government to establish the emirate as an international aviation hub and a gateway to global markets,” said Sheikh Ahmed bin Saeed Al Maktoum, the chairman of Dubai Aviation City Corporation, the company in charge of developing the $33 billion Dubai World Central.

“The aviation district has been holistically conceived to capitalise on the dynamic aviation industry of the UAE and the region,” he said.

The aviation district, covering more than 6.8 square kilometres, will provide”land-side and air-side facilities” and will help to leverage the capacity of the new Al Maktoum International Airport, the company said. Officials hope the district will be able to capitalise on the strong growth in aviation in the region, the Indian subcontinent and China.

Close links to the nearby Jebel Ali Free Zone would help to cut “inter-modal” transport times. More info

Dubai International Airport handled an average of 135,700 passengers each day as the emirate’s aviation engine powered ahead in the first half of the year.

A record 24.6 million passengers passed through the world’s fourth-busiest airport for international passenger traffic during the period, compared with 22.6 million in the same period last year, as the airport’s biggest customers, Emirates Airline and flydubai, added flights, routes and aircraft.

The increase of 8.8 per cent keeps Dubai International on track to become the world’s busiest international air hub within four years, officials say. A US$7.8 billion (Dh28.64bn) expansion of Dubai International is planned to continue driving growth over this decade.

“Robust passenger traffic growth continues despite high fuel prices and growing economic uncertainty in Europe and the US,” said Paul Griffiths, the chief executive of Dubai Airports, which manages Dubai International and the new Al Maktoum International Airport in Jebel Ali. “This is being driven by the addition of new routes and frequencies.”

The first-half results, representing the busiest six months in the airport’s 50-year history, was achieved amid regional and international shocks – including political unrest in other parts of the region and the earthquake in Japan – that curtailed some air travel.

More than 200 new weekly flights were launched to 19 new destinations across Asia, Europe and Africa by airlines over the period. Dubai International serves more than 130 airlines flying to more than 220 destinations on six continents.

The airport’s figures for last month reveal a 10.4 per cent rise from the same period last year, to 4.07 million passengers.

The airport operator said India, the UK, Saudi Arabia, Pakistan and Iran provided the most inbound flights.

The world’s fastest-growing regions for passenger traffic during the first half of the year include Eastern Europe, with traffic rising 302.4 per cent, and the GCC, where volumes increased by 28.2 per cent.

Traffic to Russia and the former CIS states grew by 20.8 per cent, followed by North America (16.8 per cent), Asia-Pacific (13.2 per cent) and the Indian subcontinent (8.3 per cent).

Air cargo volumes remained flat, however, in the first half, with Dubai International processing 1.058 million tonnes compared with 1.055 million tonnes during the same period last year, an increase of 0.2 per cent.

Cargo activity began to rise, however, at the end of the latest period, with volumes growing 3.34 per cent to 183,365 tonnes.

Emirates Airline has lined up financing for the delivery of billions of dollars’ worth of new aircraft and is set to tap the bond market for more cash in the near future.

The cash injection comes as the airline prepares to accelerate its fleet expansion as it receives more Airbus A380 superjumbos and Boeing 777-300ERs, putting new demands on its financing abilities.

The Dubai airline completed lending terms with three foreign banks for the financing of 10 of the wide-bodied, long-haul jets from Airbus and Boeing, worth US$3 billion (Dh11.01bn) at list prices before standard industry discounts.

Germany’s Doric Asset Finance, Natixis of France and Jackson Square Aviation, based in San Francisco, were mandated by Emirates to finance the five A380s and five 777s, which are scheduled to be delivered by July next year.

Emirates has also completed an operating agreement with Dubai Aerospace Enterprise (DAE) to lease seven new Boeing freighters, including two 747-800Fs and five 777s. Emirates did not say when it planned to take delivery of the aircraft, which are valued at more than $2bn at list prices.

The announcement of the DAE deal came alongside the airline posting its annual results last month at a period when the Dubai leasing firm has been cancelling orders from Airbus and Boeing for the past year. The orders stem from a 2007 buying spree, less than a year before the global downturn, when DAE agreed to buy 200 jets.

Emirates, the world’s largest airline by international capacity, plans to take delivery of two jets a month for the next six years. Last year it said it would need more than $28bn through to 2017 for the expansion of its fleet, or twice the amount it has raised since 1996.

Emirates has traditionally diversified its funding sources to include regional and international banks, export-credit-backed deals, bonds, Islamic financing and alternative structures. While European and US carriers successfully pushed to raise the cost of export-credit deals to level the playing field, Emirates has said it would not be adversely affected by the changes. While it holds cash reserves of Dh16bn, the airline is exploring a bond sale and is nearing the end of a financial roadshow across Asia and Europe.

“With the obligations we have coming up, it’s nice to have the cash buffer to deal with anything ahead of us,” Tim Clark, the president of Emirates, told Bloomberg News. “Can we do without it? Yes, we can. We are in a comfortable position.”

The airline has just reported its most profitable annual results, with the 12 months ending in March yielding a Dh5.93bn profit as it carried record numbers of passengers and freight. Earlier this year, as unrest hit some parts of the Middle East and North Africa region, Emirates pulled out of a bond sale, citing unattractive terms.

Emirates is weighing a benchmark five-year dollar bond with early talk indicating pricing of 350 basis points over mid-swaps, Reuters reported on Monday. Mid-swap is the price calculated as the mid point between the bid and offer prices (buy and sell prices) on transactions (swaps). Although Emirates did not disclose how much it hoped to raise in the bond sale, such bond issues are generally worth more than $500 million.

Icelandic volcanic eruptions are again threatening to shut down European airspace.

Although conditions began improving late yesterday, the situation mirrored the eruptions last year that caused US$1.7 billion (Dh6.24bn) in damage to the airline industry.

Safety officials in Scotland and Germany have restricted flights as the Grimsvotn volcano continued spewing ash clouds up to 12km high.

Middle East airlines were heavily affected last year, and this year’s ash event comes at a time when the busy summer travel season to Europe begins. This year is also a key period for Etihad Airways, which is banking on sustained robust demand to reach its financial break-even point.

In a positive development, scientists say the latest eruptions appear less dangerous and meteorological conditions are beginning to improve.

“It’s not over,” Pall Einarsson of the University of Iceland told the Associated Press agency. “But it’s declining rapidly.” Similarly, data from the UK Meteorological Office showed ash densities over northern Germany were dissipating, while the London Volcanic Ash Advisory Centre reported yesterday that according to preliminary data, it appeared the “eruption may have ceased”. The “plume is not visible on the radar”, it added.

Clearing skies have led to flights being allowed to resume in Bremen, Germany, yesterday, with flights out of Hamburg and Berlin also expected to start up again later in the day. Ash particles have been known to damage airliners in flight leading to engine failure and impairing aircraft exteriors and control instruments.

In March last year, Middle East carriers such as Emirates Airline, Etihad Airways and Qatar Airways lost tens of millions of dollars from the flight disruptions that grounded aircraft and stranded thousands of passengers at their Gulf hubs and throughout the Europe.

The airlines suffered loss of revenues as well as incurring costs associated with putting up stranded passengers in hotels.

The looming ash cloud has already caused two high-profile travel disruptions. This week, Barack Obama, the US president, flew from Ireland to England a day early while the football club FC Barcelona also flew to England several days ahead of schedule in advance of their Uefa Champions League final on Saturday against Manchester United at Wembley.

The ash was expected to continue to move gradually east, potentially causing problems in Poland as well as Scandinavia, according to Eurocontrol and the London Volcanic Ash Advisory Centre.

This week, Emirates diverted a Glasgow-bound flight to Manchester as a result of the ash clouds, and was also forced to ground a flight due to depart from Newcastle to Dubai and cancel a flight to Hamburg. “All other flights to the UK and Europe continue to operate as per the schedule,” it said. Officials from Etihad Airways and Qatar Airways said all European flights were operating on schedule.

The precautionary measures taken last year were deemed harsh by many airlines forced to halt operations, and this year several carriers have taken more pro-active stances.

British Airways conducted a test flight on Tuesday over north-east England and Scotland, including parts within a high-density “red zone” of volcanic ash for almost one hour.

Afterwards, the airline conducted visual inspections and also more sophisticated borescope inspections, which concluded the ash caused no damage, it said.

On the same day, the Irish budget airline Ryanair operated a Boeing 737-800 on a fact-finding flight over Scotland, and determined the airframe and engines had not been damaged by ash.

An Emirates airline flight bound for Dubai from Kuala Lumpur was diverted to Chennai in India following reports of smoke in the cockpit.

Flight EK409 made an emergency landing at Chennai International Airport on Saturday.

In a statement, an Emirates airline spokesman said crew and passengers were taken off the plane but had to stay overnight at Chennai because the technical issues could not be resolved that day.

“Because of the time on the ground resolving the technical issues, the crew were no longer able to complete the journey to Dubai within prescribed flying hours,” said the statement.

“The passengers and crew were accommodated overnight in Chennai and departed this morning and arrived in Dubai at approximately 12.25pm local time.

“We apologise for the inconvenience caused, but stress the safety of our passengers and crew is of paramount importance and will not be compromised.”

A 43-year-old businessman was acquitted of forging Dubai airport entry and exit stamps this morning at the Dubai Criminal Court of First Instance.

AS, from Azerbaijan, was also charged with forging two passports by changing the picture on one and the expiry date on the other. He was referred to the Court of Misdemeanours on these charges and awaits a verdict.

AS was so thrilled at being acquitted that he asked the translator twice about the verdict.

Police officers had told prosecutors that the defendant confessed during investigations.

A female visitor was sentenced to 10 years in prison followed by deportation for attempting to smuggle more than two kilograms of heroin into the country.

MM, 30, from South Africa, told the Dubai Criminal Court of First Instance she did not know what was in the bag, which had been given to her by a friend who asked her to deliver it to his brother in Dubai. She will be deported after serving her sentence.

Prosecutors said MM entered Dubai International Airport on July 24, 2010, and was found carrying 2.69kg of heroin in one of her two bags.

AH, a female corporal, testified that MM was searched after officers noticed her acting suspiciously.

The court also fined her Dh50,000 and ordered the confiscation of the banned substance.

Nearly 1,000 Indians, 400 Vietnamese and 200 Sri Lankans fleeing Libya have travelled through Dubai International Airport in the past week, with more expected in the coming days.

Diplomatic missions are rushing to provide food and other assistance to their nationals waiting in the airport’s transit lounges to fly home. Officials said many had fled with little clothing or money.

Three chartered flights have already helped evacuate Indians from Libya and to Dubai. “More flights will be put in place if necessary,” said Sanjay Verma, the Indian consul in Dubai.

The Vietnamese government has also evacuated its nationals, mostly labourers, over the past two weeks. Seven of its nationals flew back to Vietnam last night.

“Until now, 400 Vietnamese have fled Libya through Dubai,” said Nguyen Quang Khai, the Vietnamese Ambassador.

“Our government has sent charter planes to Tripoli to evacuate them. The situation is very tense in Libya and we are keen on the safety of our nationals.”

In some cases, the Vietnamese embassy was providing tickets to fly home.

“Many have no money and we are buying them tickets. We are also providing them with food at the airport,” Mr Quang Khai said. He said more were expected to travel through Dubai in the next few days.

The Sri Lankan consulate has assisted about 227 of its nationals, with about 138 of them arriving over the weekend.

“Many have fled from Libya without taking any belongings,” said Abdul Rahim, the Sri Lankan consul. “A number of them looked very distressed and tired. Some of them even had no money with them. They hadn’t received salaries as many companies have been closed since the unrest began.”

Sri Lanka’s missions in the UAE will be in contact with its missions in Libya to help in the evacuation of more nationals.

Officials hope to agree this year on how customs revenue will be distributed between GCC states in a deal regarded as an important step in boosting regional trade.

A Dnata Cargo warehouse in the Dubai Airport Free Zone. The GCC customs union has helped to treble trade to US$90 billion.

Differences have for years delayed the creation of a system to transfer customs receipts fairly among members.

“At one of the next meetings the magic formula will be reached,” said Abdel Aluwaisheg, the director general for international economic relations at the GCC.

Since it was set up in 2003, the GCC customs union has been credited with helping to treble trade to US$90 billion (Dh330.57bn) last year.

Members agreed on a common set of tariffs for exports – 5 per cent for 90 per cent of goods and no fees on other products.

But officials say the process by which such money is distributed between states is unnecessarily cumbersome.

At the moment, country representatives have to meet every three months to settle outstanding invoices.

Instead, officials want to set up a common fund into which all revenues are pooled and then redistributed to members based on their share of trade.

In a meeting in Riyadh on Saturday of the financial and economic committee of GCC, chaired by the UAE, a deal was reached about how to share funds. But how to determine the formula to control the distribution remains a sticking point.

Involved in a large proportion of regional trade, UAE officials want to ensure they receive their fair share of receipts.

“A lot of procedures will be discussed to decide how to distribute the funds,” said Majed Omran, the director of the international financial relations department at the UAE Ministry of Finance. “There may be an agreement in 2011.”

A customs union, a form of trade bloc, involves countries agreeing on common external trade policy to increase efficiency and forge close ties. Such a union was one of the EU’s earliest achievements.

In the GCC’s case, moving towards an economic bloc similar to the EU is a priority for only four members: Saudi Arabia, Qatar, Kuwait and Bahrain. The UAE and Oman have pulled out of plans to create a regional single currency.

But the Emirates has been one of the frontrunners in achieving another element of closer economic collaboration: the GCC common market. UAE officials say they have been more active than others in opening their economy to GCC nationals and companies.

“[The] UAE is keen to activate GCC economic integration and support GCC common projects and their diversification to serve all member states’ economies,” said Obaid Humaid al Tayer, the Minister of State for Financial Affairs.

GCC customs union officials will hold a further meeting next month to discuss plans for the ratio to distribute custom revenues. Talks will also cover how to co-ordinate border checkpoints between countries.

The results will then by submitted to a summit of the Supreme Council of GCC leaders in Riyadh in May.

Abdulrahman al Attiyah, the GCC secretary general, at Saturday’s meeting stressed the importance of the customs union, especially after recent unrest in parts of the Mena region.

Experience The Ritz-Carlton, Dubai, and discover a private playground in the heart of the Dubai Marina. Featuring luxurious accommodations and renowned Arabian hospitality, guests at this Dubai resort can bask in the sun on 350 meters of white sand beaches, indulge in soothing spa treatments or savor exceptional meals in a breathtaking setting.

The welcome

When I arrive at any hotel, my car is invariably dusty, and my belongings have a tendency to spill out despite my efforts to pack neatly into matching luggage. The response of the valet and greeting service is always rather telling: quiet disdain? Panic at the chaos? A fussing army of attendants? At the new Ritz-Carlton there is none of the above. Two valets quickly help to unpack the boot of my car, baby’s pushchair follows me to the reception desk and my suitcase is whipped out of sight. I’m given a ticket and asked to present it to reception staff to ensure that my suitcases meet me later; it’s a reassuring system and it works. I’m given a refreshing juice to drink in a long-stemmed glass and a hand towel while the details of my booking are confirmed. All this is quietly efficient and no-nonsense.

The neighbourhood

In many ways, taking the wrong turning to DIFC off Sheikh Zayed Road gives visitors a more accurate impression of Dubai’s financial district than rolling up at the front door. Like much of Dubai, DIFC is all shiny and high-rise around the Gate itself, with its carefully landscaped gardens and clutch of towers, but explore and you weave between sandy, vacant lots and smaller family businesses. It would be easy to lose your way to the hotel, but there are few buildings as imposing and Gotham City-like than the Ritz-Carlton. The Gate itself has attracted a number of Dubai’s best-known restaurants, including Zuma, catering to the “Yippee! Lunch is on expenses” weekday crowd, but there is little sense of any life out and about on a weekend.

The room

I’m in a Club Suite on the 10th floor, which has a separate bedroom and enormous bathroom with an oval bath (complete with small flatscreen TV) plus a shower with a stone bench just in case the powerful water jets prove a bit overwhelming. The bed, which points towards a huge flatscreen TV, is high and wide, with a duvet cum mattress topper that makes it exceptionally soft and difficult to leave of a morning. The suite looks out on rather anonymous office blocks. It’s not a bad view but I’m careful to close the curtains for privacy in the evening. The decor is international – no Arabian fantasy, this – tasteful and very plush.

The service

Be wary of looking lost in a Ritz-Carlton hotel. Wondering where the spa is? A member of staff will accompany you to any given destination whether it’s up two flights of stairs or just around the corner. This is either very welcome or extremely irritating depending on personal taste. Generally, though, staff are polite, responsive without being overenthusiastic and very helpful. At breakfast, when I ask for a high chair in the club lounge (open daily from 7am to 10pm for club guests, serving complimentary food and non-alcoholic drinks) staff quickly bring one up from the ground floor. Breakfast is a relaxed, enjoyable affair despite the company of an 11-month old, with eggs to order and a great selection of pastries, juices and cereals. Staff rather sweetly help to entertain baby.

The scene

The hotel caters for business people dashing to the Gate next door and back again, and this weekend, very soon after the hotel opened, it is very quiet apart from a French tour party that has sensibly been re-routed from Egypt. What the hotel lacks in atmosphere, though, it tries to make up for with soft lighting and eyecatching interior design – at least there is something interesting to look at when people-watching falls rather flat.

The food

Unlike many Dubai hotels, there isn’t a plethora of dining options. Can-can is a French-style brasserie serving standard buffet fare; Center Cut is for meat-lovers with steaks sold by weight as well as lighter seafood dishes and salads, and Blue Rain is a Thai restaurant with an extensive menu of favourites with a twist. I try the prawns wrapped in betel leaves with ginger and chilli (Dh55) as an appetiser, which had a pleasing crunch, a spicy green papaya salad with crispy catfish (Dh60), and a penang curry with melt-in-the-mouth wagyu beef (Dh165).

Loved

The lack of bling. Every detail of the Ritz-Carlton DIFC seems to have been carefully and quietly considered: wall coverings include pearlescent leather panelling, and tactile chiselled marble as well as the ubiquitous polished variety; every chair in my suite is upholstered in a different patterned silk; the carpet (not one solid colour, mind) is so silky soft, I’d like to roll around on it. There are four different types of water with slices of lemon, orange or lime presented on an occasional table. And best of all? There are two types of bathrobe. One in thick towelling to dry you, and a lighter Japanese-style waffle robe to keep you cosy as you wander around before bedtime.

Hated

I’m not a huge fan of glass walls in hotel bathrooms. The Ritz-Carlton just about pulls it off because the bathroom in my suite is huge, so the glazing by the tub feels more like a design feature than an attempt to make a pokey room feel bigger. Nevertheless, just what is the point of introducing a public gallery into what needs be a private space?

The verdict

A typically grown-up Ritz-Carlton with a polish and level of service that many a general manager at more established hotels would kill for. Guests staying for pleasure rather than business will feel a bit marooned out in the financial district but it’s almost worth cutting yourself off from the rest of Dubai to appreciate the quality.

The bottom line

A standard double room costs from Dh1,140, per night, including taxes. A one-bedroom suite with club lounge access costs from Dh1,860 per night, including taxes. The Ritz-Carlton, DIFC, Gate Village, DIFC, Dubai (www.ritzcarlton.com; 04 372 2222).