DUBAI: The United Arab Emirates’ economy grew by around 1.7 percent in 2018, slower than projected despite a boost from higher oil prices, official preliminary data showed.
The UAE growth figures follow Dubai’s disclosure last week that its economy grew by 1.94 percent in 2018, its slowest pace since a contraction in 2009 when the economy was hobbled by a debt crisis.
Oil producer UAE had projected in December growth between 2.5 and 3 percent for 2018, with Gulf economies benefiting from higher oil prices after OPEC members and other producers cut output to tackle a supply glut.
In its latest quarterly report, the Central Bank estimated the economy grew by 2.8 percent in 2018, up from 0.8 percent a year earlier.
Economic growth was driven by higher oil prices and a robust performance by the non-oil sector, Economy Minister Sultan bin Saeed Al-Mansouri was quoted as saying by state news agency WAM late on Saturday.
The oil and gas sector was the single largest contributor to economic growth, accounting for around 30 percent at constant prices, according to preliminary data from the Federal Competitiveness and Statistics Authority.
The non-oil sector grew by around 1.3 percent to 1 billion dirhams ($272.3 million).
To offset the slowdown in economic growth, the Dubai government has taken measures to cut costs for key industries including aviation, real estate and education.
The Abu Dhabi government has announced a $13.6 billion economic stimulus package as well as several economic initiatives to ease the cost of doing business.
The UAE has projected growth of 3.5 percent for 2019.
The International Monetary Fund said in February it expects the UAE’s economy to grow by 3.7 percent this year.
UAE economy rebounds in 2018, but more slowly than expected
UAE economy rebounds in 2018, but more slowly than expected
- Oil producer UAE had projected in December growth between 2.5 and 3 percent for 2018
- Gulf economies are benefiting from higher oil prices after OPEC members and other producers cut output to tackle a supply glut
PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025
RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.
According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.
Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries.
The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.
AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.
AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.
Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”
He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”
Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.
AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance.
Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.
