ABU DHABI — New low-cost airline Wizz Air Abu Dhabi is to launch operations from the United Arab Emirates capital Abu Dhabi in the second half of 2020, the partners in the venture announced Monday.

State-owned Abu Dhabi Developmental Holding Company and Budapest-based Wizz Air said they "concluded the definitive agreement" to set up the new airline.

"Wizz Air Abu Dhabi plans to start operations in the second half of the year," they said in a joint statement.

The venture will compete with another joint venture between Abu Dhabi's giant Etihad Airways and Sharjah's low-cost Air Arabia, to be launched in the first half of this year.

Like Wizz Air Abu Dhabi, Air Arabia Abu Dhabi will operate from Abu Dhabi International Airport.

Launched in 2003 by Abu Dhabi, Etihad has faced stiff competition from Dubai's Emirates and Qatar Airways, and it posted losses in the past three years.

Airlines in the Arab states of the Gulf have faced a double hit from oil price fluctuations and regional political tensions. — AFP