Dubai's government on Tuesday announced plans for an initial $3 billion financing deal to support the expansion of the emirate’s two international airports.
As part of the funding, the airports are set to grow to serve up to 146 million passengers by 2025, officials said in a statement.
The financing will be raised by a consortium of Dubai state entities, comprising of the Department of Finance, state-owned fund Investment Corporation of Dubai, and the Dubai Aviation City Corporation.
The three parties will work jointly to raise financing from various liquidity sources, both conventional and Islamic while HSBC is acting as financial advisor, the statement from Dubai Media Office added.
Already, Dubai International Airport is the world’s largest international airport at 78 million passengers in 2015, with a 13 percent average compound annual growth rate since 2000.
The new Al Maktoum International Airport is planned to become the primary airport for Dubai, as well as the home to Emirates Airline from 2025.
“Dubai remains firmly committed to the development of the Al Maktoum International Airport and to the growth of the global aviation sector, and this initial $3bn transaction to support Dubai’s ambitious 2025 passenger capacity targets is testament to our belief,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai’s Supreme Fiscal Committee.
Abdulrahman Saleh Al Saleh, director general, Department of Finance (DoF) for the Government of Dubai, added: “In line with Dubai’s vision to maintain its status as one of the world’s most important cultural and commercial centres, the planned expansion of both of the city’s airports is critically important, and our department is proud to play a vital role in their ongoing financing, just as we have with other similarly major projects.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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