The ruler of Dubai has ordered the creation of a new low-cost airline to serve the growing number of passengers traveling through the Gulf trade and tourism hub, the official WAM news agency said on Tuesday.

"Sheikh Mohammed bin Rashid al-Maktoum has ordered... the establishment of a new airline company in Dubai to meet the need to service passengers to and from the United Arab Emirates whose number is increasing year on year," it said.

Dubai, one of seven emirates comprising the United Arab Emirates, already has the largest Arab airline, Emirates, and the nearby emirate of Sharjah is home to Air Arabia, the Middle East's biggest low-cost carrier.

UAE capital Abu Dhabi is home to Etihad Airways, and RAK Airways, based in the northern emirate of Ras al-Khaimah, also flies to several destinations. WAM said the new airline would established immediately.

Dubai Airport, the busiest airport in the Middle East, saw international passenger traffic grow 19.31 percent last year. It handled 34.34 million passengers.

Dubai is building a new airport on the other side of town that it expects will be the biggest in the world.