Dubai International Concourse 3 Commercial Opportunity Expression of Interest

Dubai International Concourse 3 Commercial Opportunity Expression of Interest

THE FUTURE IS BRIGHT. I INVITE YOU TO SHARE IN OUR SUCCESS. HH Sheikh Ahmed Bin Saeed Al Maktoum President of Dubai Civil Aviation Authority and Chairman of Dubai Airports Dubai's aviation sector has quickly evolved from humble beginnings into a global aviation phenomenon. Its success has been the result of a carefully constructed and well executed model that effectively harnesses the emirate s geocentric location and taps into its entrepreneurial spirit. It is an approach that features a liberal regulatory climate which fosters competition, a tax-free business environment, a customer-centric focus that provides value for money and close coordination and collaboration within the sector. The results have been nothing short of impressive. Over the past five years alone, international passenger numbers at Dubai International have virtually doubled from 24.8 million in 2005 to 47.2 million in 2010. Dubai International now ranks fourth globally for international passenger and cargo traffic. Our future holds even greater promise. Rallying tourism, Dubai s proximity to the emerging economies of India and China and the emirate's established role as a trading hub to link economies in the Far East, Europe, Africa and North America together will drive continued growth and further elevate Dubai s status as a global centre for trade, tourism and commerce. AN INVITATION In 2011, passenger numbers will exceed 51 million. By 2020 some 98.5 million passengers, flying from every major destination across the globe, will pass through our airports as the fleets and networks of Emirates and flydubai expand considerably to accommodate demand. Similarly, the infrastructure must expand to enable this growth and facilitate the trade, tourism and commerce that in turn will support the prosperity of Dubai. The first critical step in that expansion is the construction of Concourse 3. When it opens at the end of 2012, Concourse 3 will be the world s first dedicated A380 terminal. It will feature 11 floors, two luxury hotels, 11,000 square metres of retail space and capacity for 19 million passengers per year. It will quickly become an icon of Dubai s already proud tradition for luxury, innovation and world-leading passenger service. The provision of an unparalleled retail experience, featuring well-known and high quality brands, will be critical in helping us achieve these goals as Dubai International becomes the world s busiest international airport. The future is bright. I invite you to share in our success. Dubai International Concourse 3 - Expression of Interest DECEMBER 13 TH 2011 3

ABOUT DUBAI AIRPORTS Aviation is fundamental to the ongoing prosperity and economic expansion of Dubai. My job is to make sure that the airport infrastructure grows to ensure there are no constraints. We re proactively continuing to expand at Dubai International and Dubai World Central to ensure we can accommodate the massive influx of aircraft and traffic expected to inundate both airports over the next 10 to 20 years. Paul Griffiths CEO, Dubai Airports DUBAI INTERNATIONAL 50 YEARS OF GROWTH Much like the city that it calls home, Dubai s aviation industry has a proud past characterised by stunning innovation and breathtaking growth. Vision and entrepreneurial spirit have propelled Dubai s development from a small oasis in the desert to a thriving metropolis with a cosmopolitan population and a reputation for innovation and quality. Equally impressive has been the development of the emirate s thriving aviation industry and its airport which has evolved from a small airstrip mainly serving as a refuelling stop for a few airlines in 1960 to a global gateway for 150 airlines that is ranked among the world s top hubs. The history of aviation in Dubai dates back to 1937 when the first Imperial Airways flying boat landed on the Dubai Creek. In the early years Dubai served as a transit point between Europe and Asia. Some 22 years later the spark that ignited 50 years of growth occurred when the then visionary ruler of Dubai, the late Sheikh Rashid Bin Saeed Al Maktoum, ordered the construction of Dubai International, which comprised an 1800-metre airstrip of compacted sand, an apron, a fire station and a small terminal building which opened on 30 September 1960 heralding a new era for aviation in Dubai. Aggressive Growth 21st Century Global Hub Throughout the 1960s, the growth pattern that was to set the trend for the remainder of the millennium quickly emerged and by 1965 a one-third increase in traffic was complemented by an expansion to the runway and apron. The same year as the official formation of the United Arab Emirates, 1971 saw the introduction of Dubai International s new US$10 million passenger terminal, leading to an increase in total air traffic movements of 53% over the following 12 months. After another decade of sustained growth, the 1980s continued in the same manner. The announcement of a new US$55 million investment, which included an arrivals terminal, a second runway, and a purpose-built freight terminal in 1982 was followed by the inception of Dubai Duty Free a year later, the arrival of Concorde to Dubai in 1984 and the handover of the new second passenger terminal in 1986. By now, the airport s annual capacity extended to 8.5 million passengers and 200,000 tonnes of cargo. As the turn of the century approached, the airport s growth continued to gather pace. On 15 April 2000, the Sheikh Rashid Terminal was unveiled. At the root of the US$540 million expansion at Dubai International was its new terminal. The 118,000sqm terminal increased the airport s capacity from 10 million to 25 million passengers and in just its third full year of operations, it handled 18 million passengers. In 2008 Dubai Airports made a true statement of intent to establish Dubai International as a leading global hub. The flawless opening of Terminal 3, for the exclusive use of Emirates, increased the airport s capacity to 60 million passengers and drew the attention of consumers and industry pundits across the globe. Just two years later the year that marked the 50th anniversary of Dubai International the airport handled 47.2 million passengers placing it fourth globally in terms of international passengers. In the half-century since its opening, Dubai International has welcomed over 402 million passengers at an impressive average annual growth rate of 15.5 per cent. In 50 years Dubai International, much like Dubai, has indeed come a long way. 4 Dubai International Concourse 3 - Expression of Interest DECEMBER 13 TH 2011 5

2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1961 5, 10, 15, 20, 25, 30, 35, 40, 45, 50, 00 00 00 00 00 00 00 00 00 00 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 00 00 00 00 00 00 00 00 00 00 0 0 0 0 0 0 0 0 0 0 0 Total passengers over 50 years 402,289,721 Average growth in passenger traffic over 50 years: 15.5% Total aircraft movements: 3,873,132 Average growth in aircraft movements: 12.4% Total cargo from 1977 to July 31 2010: 17,906,199 Average growth in cargo since 1977: 14.3% Growth over the past 50 years Dubai Airports DUBAI AIRPORTS TODAY Dubai Airports today owns and manages the operation and development of Dubai International as well as Dubai World Central. Dubai Airports delivers a world-class experience for customers by providing safe, secure and efficient airports. We work in partnership with airlines, passengers and employees to drive the growth of Dubai as the world s emerging centre for leisure and business. 3400 employees Dubai International 47.2 2.27 329,000 220 150 million passengers million tonnes cargo movements scheduled destinations Vision We are driven to change the course of aviation history, and to achieve our vision to be The World s Leading Airport Company. 6 It comprises three terminals, including the award-winning Emirates Terminal 3 which opened in October 2008. Widely acknowledged in the industry as the most successfully launched terminal of its size, Terminal 3 boosted Dubai International s operational capacity to 60 million passengers per year, a figure that will increase to 75 million on completion of the world s first A380-dedicated airside facility Concourse 3 in 2012. airlines Dubai World Central Mission Our mission is to create world-leading airports to enhance the prosperity and global standing of Dubai. Dubai International is the fourth busiest airport in the world in terms of international passenger and cargo traffic. Dubai International is connected to over 220 destinations across six continents through some 150 scheduled airlines. 19 4200 cargo airlines Dubai World Central, the first phase of which was opened for cargo operations in June 2010, will eventually become the world s largest airport with capacity for 160 million passengers and 12 million tonnes of cargo per year. movements/year Dubai International Concourse 3 - Expression of Interest DECEMBER 13TH 2011 7

GROWTH DRIVERS A World Class Model Dubai has a wealth of assets and conditions that combine to make it a world-class tourist and business destination. These include political and economic stability, an extensive foreign trade network, state of the art telecommunication, a tax-free environment and top-notch infrastructure. It is no wonder then that aviation is at the heart of Dubai s economic strategy. The government of Dubai clearly recognises that aviation is not only an important driver of growth in its own right, but that it underpins growth in Dubai s other key sectors. A liberalised aviation policy, supportive government and a coordinated approach means that Dubai Airports is able to react quickly to the marketplace and make quick decisions on major infrastructure investment that take full advantage of its geocentric location. Aviation has benefited from a clear economic strategy which recognises the importance of the connectivity it brings. This awareness manifests itself in effective decision making that is results-focused and cuts across organisational boundaries. Decision making is typically collaborative and decisions can be made quickly because of constructive relationships among senior individuals in government and in the aviation sector fostered by frequent contact. As a result, Dubai s aviation sector has also benefited from its collaborative approach to investment that has helped Dubai Airports and Emirates more efficiently expand together, supporting each other s growth. Dubai s aviation sector also benefits from its liberal Open Skies approach and the emirate's strategic location within eight hours flight of most major destinations and two-thirds of the world s population. These factors, along with the provision of top-flight infrastructure provided at low rates, have attracted over 150 airlines that provide non-stop services to 220 destinations around the world. As a result, according to IATA, the UAE is the most connected country in the world, in no small part due to Dubai s thriving aviation sector. Dubai has a model that recognises aviation s strategic importance and promotes growth in the sector. It starts with an Open Skies policy, competitive rates and a tax-free environment that has attracted over 150 airlines to Dubai and extends to strategic investments in topflight aviation infrastructure that promote high service standards and sustain rapid growth. This combined with our geocentric location, which can effectively connect any two major cities in the world, will drive further expansion and continued benefits to consumers across the globe. HH Sheikh Ahmed Bin Saeed Al Maktoum President of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group Sector Value Dubai is serious about aviation due to its tremendous contributions to the local economy. According to an exhaustive study conducted by leading global research firm Oxford Economics, aviation supports over 250,000 jobs and contributes over US$22 billion which represents around 19% of total employment in Dubai, and 28% of Dubai s GDP. Aviation supports Dubai s economy in more ways than its own economic footprint. The key sectors of travel and tourism, financial and professional services, and logistics all depend on the aviation sector for their success. Not only is the success of Dubai s aviation sector good for Dubai s economy, it also benefits the global economy. It promotes global tourism. It creates connections between cities and countries. These connections represent an important infrastructure asset that benefits passengers and businesses from many countries. It promotes strong competition, ensuring passenger efficient, high quality air services. Aviation s importance to Dubai is expected to continue to grow over the next decade. On the basis of these strengths and the forecasts for passenger growth from Airbus and Boeing, Oxford Economics expects the economic contribution of Dubai s aviation sector to rise to 32% of Dubai s GDP and about 22% of its employment by 2020. Given that, investment in top-flight aviation infrastructure is set to continue unabated. 8 Dubai International Concourse 3 - Expression of Interest DECEMBER 13 TH 2011 9

Macro-economic Conditions Fleet Growth Market projections and macro-economic conditions strongly suggest that Dubai International's 50 year history of dramatic traffic growth will continue for the forseeable future. Passenger and cargo traffic expansion is set to continue at an impressive rate driven by continued market liberalisation and highlighted by dramatic GDP growth in emerging markets which will lead to an expansion of the middle class and increased movements of populations. This leads to the expectation that local traffic growth will continue to outstrip the industry-wide projections of organisations such as Boeing, Airbus and IATA. According to Airbus 2009-2029 Global Market Forecast air traffic will double in the next 15 years. Further, the report calculates emerging markets are set to generate the lion s share of that growth. China, India, Middle East, Asia, Africa, CIS, Eastern Europe and Latin America are projected to see annual revenue passenger kilometer (RPK) growth of 6.1% per annum for the next 20 years. More mature markets in North America, Europe, Australasia and Japan are projected to see 3.7% average annual RPK expansion. That in turn has and will continue to precipitate aircraft orders to serve the growing demand. In the Middle East, governments supportive approach to aviation as a key driver of economic diversification and social development has led to significant investment in long range aircraft and infrastructure to exploit the Middle East s geocentric location to tap into emerging markets. Additionally new low cost carriers have emerged in the Middle East since 2003 targeting the under 25 year-olds who comprise about 50% of the region s population. In response to these leading indicators Airbus estimates aircraft demand will average 1,300 per year globally. Dubai s two largest airlines, Emirates and flydubai, have already placed significant aircraft orders to meet the expected demand. Emirates fleet consists of 157 wide-bodied aircraft with some 200 more on order. flydubai's fleet consists of 16 aircraft with 34 on order. These forecasts indicate that Dubai's passenger traffic is to grow at a cumulative annual growth rate of 7.2%, a much stronger rate than the industry average forecast of around 5% from sources such as Airbus and Boeing. Further, based on the past 25 years of data, Dubai Airports fully expects those seats to be largely filled and forecasts passenger numbers to more than double from the 47.2 million that passed through Dubai International in 2010 to 98.5 million by the end of the decade. 10 Dubai International Concourse 3 - Expression of Interest DECEMBER 13 TH 2011 11

WELCOME TO CONCOURSE 3 The past 50 years have been nothing short of remarkable and the future holds even greater promise as we build our infrastructure to support the impressive expansion of Emirates and flydubai and ascend the ranks of global aviation hubs. Paul Griffiths CEO, Dubai Airports Historical Passenger Growth Future Passenger Growth Accordingly, arguably the world s most significant airline and airport expansion programme is taking place in Dubai. Currently, infrastructure enhancement is well underway to increase capacity from 60 million to 75 million with the opening of Concourse 3 at the end of 2012. Although DWC is the long term solution to Dubai s aviation needs, adequate capacity to house Emirates considerable operation is not expected to be in place until at least the mid-point of the next decade. Accordingly, and until such time that DWC is adequately developed, Dubai International will undergo additional facility enhancements and efficiency improvements to boost annual passenger capacity to 90 million by 2018. World's First Dedicated A380 Concourse Concourse 3 should provide a welcomed boost to capacity and service when it opens at the end of 2012. A part of the Terminal 3 complex, C3 will become the world s first Airbus A380-dedicated facility, adding another record to Dubai International s already proud legacy of industry firsts. Designed for the exclusive use of Emirates, it will increase the airport s total capacity from the current 60 million passengers per annum to 75 million passengers. C3 will be very similar to Concourse 2 in terms of appearance, but with a slightly smaller footprint. It will be 90m wide and 645m long, and will have a total built-up area of 528,000 sqm. The facility will feature 20 aircraft contact gates, all of which will be dedicated to A-380, in addition to 13 remote stands. Technically the C3 project is an extension and continued development of Concourses 1 and 2. It is a fully airside structure and is connected to the two major public levels of Concourse 2 and Terminal 3 (T3) via an Automated People Mover (APM), in addition to the vehicular and Baggage Handling System (BHS) utility tunnels. C3 is partially underground comprising the APM stations (both arriving and departing), and like C2 the lower and upper levels are connected by means of a special vertical transportation system (sky trains) that acts as a focal point feature in a central atrium. While the arrival and departure levels are similar to Concourse 2, the first and business class levels are further split up and are located one above the other, below the hotel level, which also includes a health club and a business centre. The hotel will feature both four- and five star operations. 50 45 40 35 30 25 20 15 10 5 0 Concourse 3 Facts & Figures Construction Budget Expected Date of Completion 2012 Area (m2) 528,000 No. Gates (Code E) & related lounges 2 No. Gates (A380) & related lounges 20 No. of remote stands 13 No. of remote lounges 6 No. of airline counters - U1 Airline counters 50 No. Hotel Rooms Retail Area Area - First Class Lounges Area - Business Class Lounges No. of Restaurants Building LengthxWidthxHeight No. of Floors Capacity per year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 AED 11 Billion (US$ 3 Billion) 5 Star Hotel = 32 rooms (out of which there are 7 suites); 4 Star Hotel = 170 rooms (out of which there are 30 suites) Approx. 11,000 m2 Approx.12,438 m2 Approx.16,553 m2 2 restaurants; 2 Food courts/bars 645m x 90.8m x 42 m 11 Floors 100 95 90 85 80 75 70 65 60 55 500 19 million passengers 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 12 Dubai International Concourse 3 - Expression of Interest DECEMBER 13 TH 2011 13

THE COMMERCIAL OPPORTUNITY The case for advertising growth is compelling as are the tremendous opportunities that will be awarded to the chosen Advertising Concessionaire for Concourse 3. Concourse 3 will have a large number of branding opportunities as well as cutting edge digital opportunities which will aim to attract global as well as local brands to a unique environment and passenger portfolio. Dubai Airports Commercial Team would like to invite Advertising Companies to express interest in becoming the official Concessionaire for Concourse 3. 14 Dubai International Concourse 3 - Expression of Interest DECEMBER 13 TH 2011 15

CONCLUSION EXPRESSION OF INTEREST Dubai Airports invites expressions of interest from suitably qualified and experienced advertising companies to build, sell, market and promote the full range of possible advertising opportunities and to maximize the advertising potential at Concourse 3 in Dubai International Airport. Prequalification is open to suitable qualified experienced international and local parties, submissions will be assessed on basis of the following criteria listed in a non-prioritized order: Experience in relevant airports business. Total range of current activities in UAE, the Middle East Region, and International. Financial, managerial and operational capacity/capability. National and international credentials. Expression of interest application must be submitted and supported by documentary evidence which include the following: Capability Statement, (size of business in UAE/ middle East/ International, Company history, list of concessions in International airports, marketing policy, pricing policy) Name and address of communication partner (including mobile number) The submission of Expression of Interest application will close on Thursday Jan 5th 2012, based on the detailed furnished in the expression of interest, Dubai airports will issue the Request For Proposal (RFP) documents in Q1 2012. Expression of interest applications must be delivered in a sealed envelope, in both hard and soft copy, in English Language to the address below and clearly marked Expression of Interest C3 Advertising. Since the first flying boat set down on the Dubai Creek over 60 years ago, aviation has evolved as a vital component of Dubai s economy. The rapid emergence of Dubai as a leading global center of aviation is not happenstance. It parallels the emirate's equally impressive history of innovation, quality and growth and is the direct bi-product of a supportive model that features liberal policies, tax-free business environment and well-timed investment. It further exploits Dubai s geocentric location, one that with today s advanced aircraft technology can effectively connect any two points in the world and is ideally positioned on the doorstep of the two largest emerging economies. Eugene Barry Senior Vice President - Commercial Unit Dubai Airports Terminal 1, Executive Offices PO Box 2525, Dubai, United Arab Emirates Telephone: +971 4 216 6915 Following 50 years of double digit passenger traffic growth, Dubai aviation is now poised to take the next impressive step in its evolution. It is a vibrant sector whose already significant contributions to the local and surrounding economies are set to expand as the incredible growth continues. Concourse 3 is the crown jewel of facility expansion plans that are designed to capture, augment and deliver those benefits to consumers, airlines and the broader economy. For airport retailers there is an incredible opportunity to cash in on the government s clear commitment to the industry, spectacular growth along with the growing global recognition of Dubai International s impressive brand reputation for quality, excellence and value. Dubai airports reserve the right to accept or reject any or all applications without assigning any reason. Further, Dubai airports reserve the right to change and or/ cancel the prequalification and tender process at any time without prior notice or without assigning any reason and without prejudice to it s right to re-tender at any time. FOR ENQUIRIES Nader Ghazzawi Head of Commercial Contracts nader.ghazzawi@dubaiairports.ae Tel. +971 4 216 6914 16 Dubai International Concourse 3 - Expression of Interest DECEMBER 13 TH 2011 17

P.O.Box 2525 Dubai, United Arab Emirates Tel: +971 4 224 5555 Fax: +971 4 224 4462 www.dubaiairports.ae Dubai Airports reserves the right to accept or reject any or all applications without assigning any reason. Further, Dubai Airports reserves the right to change and or / cancel the prequalification and tender process at any time without prior notice or without assigning any reason and without prejudice to its right to re-tender at any time. 18