The government of Dubai has hired HSBC to arrange initial funding of $3bn towards the expansion of Al Maktoum International Airport.
Three state entities – the Department of Finance (DoF), state-owned fund Investment Corporation of Dubai (ICD), and the Dubai Aviation City Corporation (DACC) – will work jointly to raise financing from various liquidity sources, both conventional and Islamic with HSBC acting as Financial Advisor, according to a statement on UAE state news agency WAM.
Dubais two international airports are set for expansion that will enable them to serve up to 146 million passengers by 2025, due in large part to a proposed initial $3bn financing transaction announced on Tuesday by the government of Dubai.
Already the worlds largest international airport, Dubai International Airport (DXB) handled 78 million passengers in 2015. The new Al Maktoum International Airport (DWC) 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 Dubais ambitious 2025 passenger capacity targets is testament to our belief,” said chairman of Dubais Supreme Fiscal Committee HH Sheikh Ahmed bin Saeed Al Maktoum.
Dubai Airports recently announced plans to boost the capacity of DXB from 90 to 118 million passengers by 2023 without building any major new infrastructure.
Under a programme called DXB Plus, the airport will add ten new A380 contact stands at Concourse C to support Emirates growing fleet of superjumbos and will also enhance services with smart technology.