SHANGHAI: China is expected this week to conduct the maiden test flight of a locally manufactured passenger jet built to meet soaring domestic travel demand and to challenge the dominance of Boeing and Airbus.
The C919, built by state-owned aerospace manufacturer Commercial Aircraft Corporation of China (COMAC), was set to take wing over Shanghai on Friday, the company said on Wednesday, according to the official Xinhua news agency.
“If weather conditions are not suitable, the maiden flight will be rescheduled,” COMAC said, adding that engineers had completed some 118 tests.
The narrow-body jet represents nearly a decade of effort in a state-mandated drive to reduce dependence on European consortium Airbus and US aerospace giant Boeing.
“The first flight itself is not a huge deal. (But) of course, it is going to be a hugely symbolic moment in the evolution of China’s aviation industry,” said Greg Waldron, Asia managing editor at industry publication Flightglobal.
The C919 is the country’s first big passenger plane and the latest sign of growing Chinese ambition and technical skill, coming one week after China launched its first domestically made aircraft carrier and docked a cargo spacecraft with an orbiting space lab. The C919 can seat 168 passengers and has a range of 5,555km.
China is a huge battleground for Boeing and Airbus, with its travelers taking to the skies in ever-growing numbers.
The Chinese travel market is expected to surpass the US by 2024, according to the International Air Transport Association (IATA).
Airbus has estimated Chinese airlines will need nearly 6,000 new planes over the next two decades, while Boeing foresees 6,800 aircraft. Both put the combined price tags for those planes at around $1 trillion.
But aviation analysts said Shanghai-based COMAC has a long journey ahead before it can challenge the lock on the market by Boeing and Airbus.
“This is an important milestone for China with this new aircraft. But for it to move to the next stage, which is to sell this product, is not going to be so easy,” said Shukor Yusof, an analyst with Malaysia-based aviation consultancy Endau Analytics.
But COMAC may be able to rely on purchases by fast-growing Chinese airlines. It had already received 570 orders by the end of last year, almost all from domestic airlines.
Waldron agreed it would take time but said that over the next century China would become a world aviation player.
“You are going to have three big companies. You will have Boeing, you will have Airbus, and you will have COMAC,” he said.
China has dreamed of building its own civil aircraft since the 1970s when it began work on the narrow-body Y-10, which was eventually deemed unviable and never entered service. COMAC’s first regional jet, the 90-seat ARJ 21, entered service in 2016, several years late.
The ARJ 21 is currently restricted to flying domestic routes as it still lacks the Federal Aviation Administration (FAA) certification that would allow it to fly US skies. China also has been in talks with the FAA to obtain certification for the C919, without result.
The C919’s first test flight had been due to take place in 2016 but was delayed.
Besides the C919, China is also working with Russia to develop a long-haul wide-bodied jet called the C929.
Made-in-China passenger jet set to take wing
Made-in-China passenger jet set to take wing
UAE’s residential real estate market to see softer home sales
- Moody’s sees mild softening of prices over the next 12 - 8 months as rising completions add supply
RIYADH: The UAE’s residential real estate market is expected to see a modest decline in developer sales and a mild softening of prices over the next 12 to 18 months as rising completions add supply, Moody’s said.
Despite near-term easing, the credit ratings agency noted that developers are supported by strong revenue backlogs and solid financial positions, while regulatory measures have reduced banks’ exposure to the construction and property sectors, helping to preserve robust solvency and liquidity buffers across the financial system.
The broader trend is reflected in the UAE’s real estate market, which recorded a strong performance during the first three quarters of 2025, according to Markaz.
In Dubai, transaction values increased 28.3 percent year on year to 554.1 billion Emirati dirhams ($150.88 billion), while Abu Dhabi recorded total sales of 58 billion dirhams, up 75.8 percent year on year. The number of transactions in Abu Dhabi rose 42.3 percent to 15,800.
The report said: “After five years of extraordinary growth in the UAE’s residential real estate market, particularly in Dubai, we expect developer sales to decline modestly and some price softening over the next 12 to 18 months as rising completions add supply.
“From 2026 to 2028, around 180,000 new units will be completed in Dubai, a significant increase from prior years that is likely to weigh on demand and slow price growth.
“However, fundamentals remain supportive, underpinned by continued population growth and an influx of high-net-worth individuals. Rated developers’ credit quality will remain resilient, supported by strong revenue backlogs, front-loaded payment plans and solid financial positions.”
Munir Al-Daraawi, founder and CEO of Dubai-based Orla Properties, told Arab News the Moody’s report underscores what the firm is seeing on the ground, namely “a market that is successfully transitioning from a period of extraordinary growth to one of sustainable stability.”
He added: “While a mild softening of prices and a modest decline in sales are anticipated over the next 12 to 18 months, these are natural adjustments for a maturing global hub like Dubai.”
Al-Daraawi believes the the projected delivery of 180,000 units between 2026 and 2028 is not a cause for concern, but “a reflection of the UAE’s long-term appeal to high-net-worth individuals and a growing population.”
The CEO added: “The report rightly points out that fundamentals remain supportive, underpinned by Dubai’s 2040 Urban Master Plan and a significant influx of global talent.”
He went on to note that the resilience of the sector is further bolstered by the solid financial positions of developers and the strong regulatory measures that have shielded the banking sector from excessive exposure.
“This creates a robust ecosystem where credit quality remains high, even as we navigate a more competitive landscape. For boutique and luxury-focused developers, the current environment emphasizes the importance of quality, execution, and strategic capital allocation — factors that will continue to define the UAE’s real estate success story,” said Al-Daraawi.
The current environment emphasizes the importance of quality, execution, and strategic capital allocation.
Munir Al-Daraawi, Founder and CEO of Orla Properties
Riad Gohar, co-founder and CEO of BlackOak Real Estate, told Arab News that while Moody’s is correct to say that supply is rising, the conclusion of a broad slowdown ignores the structure of this current economic cycle.
He added: “First, this is not a debt-fueled market. Around 83 percent of Dubai residential transactions in 2024 and 2025 were non-mortgaged. That means the market is equity-driven, not credit-driven. When cycles are not built on leverage, corrections are typically shallow and segmented, not systemic. “
He added that the macroeconomic backdrop is stronger than in past cycles, driven by sustained non-oil gross domestic product increase, structural reforms, population growth, and capital inflows aligned with long-term national plans.
“Demand is not purely speculative; it is driven by migration, business formation, and wealth relocation,” the CEO said.
“Third, prime vs. non-prime must be separated. Any pressure from increased completions is more likely to affect marginal locations, not established prime areas supported by global HNWI inflows. Historically, prime assets in Dubai have shown resilience even during broader market pauses,” Gohar added.
He continued to clarify that for smaller developers, some may feel margin compression if sales moderate, but this becomes a consolidation phase, not a systemic risk.
“Banks’ real estate exposure has already declined to around 12 percent of total loans — from 19 percent in 2021 — and NPLs (non-performing loans) are low at 2.9 percent, meaning financial contagion risk is limited. Regulatory escrow structures and stricter oversight further reduce spillover,” the CEO said.
“We are in a capital-rich, cash-driven cycle, regulated market with strong GDP and population growth. If anything, weaker fringe players exiting would strengthen the core not destabilize it,” he said.
The Moody’s report highlighted that while most developers it rates will generate “substantial excess cash” over the next two to three years, there will be fewer opportunities to make significant investments, especially within the Dubai real estate market.
As well as prompting a shift toward corporate governance and, in particular, how developers deploy their rising liquidity, some firms are looking to diversify beyond their core business models.
“For instance, Binghatti has recently launched its first master-planned villa community, marking a departure from its historical focus on single-plot high-rise developments, as demand for villas continues to outperform that for apartments,” said the report.
It continued: “Others are looking beyond Dubai and the UAE for growth, whether through geographic diversification or expansion into unrelated sectors.
“For example, Damac’s owner, Hussain Sajwani, has announced significant planned investments in data center development across the US and Europe.
“Emaar continues to develop actively in Egypt and India and is evaluating potential entry into China and the US. Aldar has started development projects in the UK and Egypt, while Arada has begun building in Australia and the UK and Sobha is expanding into the US.”
