By Staff writer
Spending plan is reportedly outlined in documents inviting banks to bid for a $3bn loan the gov't is seeking to raise for initial expansion
Dubai is reportedly planning to spend $35.7 billion to develop its second airport and the Dubai South logistics hub, with the emirate likely to rely on debt funding for a significant part of the financing.
Bloomberg reported on Thursday that the investments will be made in Dubai World Central and associated facilities, including Al Maktoum International airport, over the next 12 years.
It cited sources close to the matter as saying that the spending plan is outlined in documents inviting banks to bid for a $3 billion loan the government is seeking to raise for initial expansion.
Upon completion, Al Maktoum International airport at the heart of Dubai World Central it will become the world’s largest airport with an ultimate capacity exceeding 220 million passengers and 16 million tons of cargo per year.
Last month, Dubai's government 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.
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.
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.