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Sun 15 Nov 2009 04:35 PM

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Dubai cargo carrier launches $500m fund

Midex Airlines says it plans to use the fund to invest in UAE aviation industry over five years.

Dubai-based national cargo carrier Midex Airlines has launched a $500 million fund which it plans to use to invest in the aviation industry in the UAE over the next five years, the head of the company confirmed.

Issam Khairallah, president of Midex Airlines, told Arabian Business in an interview at the Dubai Airshow on Sunday that the fund will be wholly self financed, will be operated for a maximum of five years and aims to generate ‘a little over’ 6.5 percent return.

‘Our target is other companies who would also like to launch in the aviation industry in the Emirates. We are today the largest privately owned cargo operator in the Middle East and Europe and many people are coming to use to either to purchase or lease aircraft for them,’Khairallah said.

He added that the fund will only target companies in the UAE.

‘We are a UAE-based company and a national carrier and here the economy is just getting back to normal so it is better than Europe and the US where they are still facing some recession,’ he said.

‘The establishment of the Midex Investment Fund makes it possible for the Company to invest in expansion and enhancement of the logistic infrastructure of our network in both the Middle East and North Africa,’ Jasem Albastaki, director general of Midex Airlines told the WAM news agency.

Khairallah also confirmed to Arabian Business that the company plans to expand its fleet by adding an additional seven 747 aircraft before the end of February 2010.

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