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Dubai’s aviation sector has made a significant move in the global market with a $50 billion purchase of Boeing jet orders, announced at the Dubai Airshow.

Emirates and flyDubai, both government-owned carriers, placed orders for 125 Boeing wide-body jets, marking a considerable investment in long-haul aircraft. This decision not only bolsters Boeing’s 777X program, which has faced delays but also signals Dubai’s aggressive stance in the competitive aviation industry.

The orders include 55 Boeing 777-9s and 35 smaller 777-8s, five 787 Dreamliners for Emirates and 30 for flyDubai. This marks flyDubai’s first entrance into long-haul orders. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of both airlines, emphasized this as a commitment to Dubai’s aviation future. Meanwhile, Boeing’s shares saw a significant rise following these announcements, further buoyed by the potential thawing of Chinese restrictions on 737 purchases after talks between U.S. President Joe Biden and Chinese President Xi Jinping.

Due to its geographical area, the Gulf region, a pivotal hub for wide-body jets, is witnessing heightened competition, with countries like Saudi Arabia, Turkey, and India vying to attract connecting traffic. The global airline industry, recovering from the pandemic, is actively engaging in new jet acquisitions, with an estimated 700-800 jets, including 200-300 wide-bodies, currently under negotiation worldwide. However, analysts caution about potential supply chain constraints in meeting this surge in demand.