Dubai plans $3bn deal to finance major airports
The deal will aid an expansion which will allow Dubai’s two airports the capacity to serve up to 146 million passengers by 2025
The Government of Dubai has announced a proposed $3bn financing transaction plan to support the expansion of the city’s two major airports, according to Dubai Media Office.
Under the agreement, coordinated by DOF, Investment Corporation of Dubai (ICD) and Dubai Aviation City Corporation (DACC), the three parties will work jointly to raise financing from various liquidity sources, both conventional and Islamic. HSBC is acting as Financial Advisor.
The Chairman of Dubai’s Supreme Fiscal Committee HH Sheikh Ahmed bin Saeed Al Maktoum said: “Dubai remains firmly committed to the development of the Al Maktoum International Airport and to the growth of the global aviation sector.
“This initial $3bn transaction to support Dubai’s ambitious 2025 passenger capacity targets is a testament to our belief.”
The expansion will allow Dubai’s two airports the capacity to serve up to 146 million passengers by 2025, by which time the Al Maktoum airport will be primary airport in the city.
Director General, Department of Finance for the Government of Dubai (DOF) Abdulrahman Saleh Al Saleh added that the planned expansion of both of the city’s airports is critically important, and that his department is “proud to play a vital role in their ongoing financing”, as with other similarly major projects.