The government of Dubai proposes $3 billion funding for the expansion of two international airports in Dubai, Dubai International Airport (DXB) and Al Maktoum International Airport (DWC). The two airports are set for a capacity-boosting expansion that will enable them to serve up to 146 million passengers by 2025.
DXB is the world’s largest international airport at 78 million passengers in 2015, with a 13% average compound annual growth rate since 2000. 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.
Chairman of Dubai’s Supreme Fiscal Committee, 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, and this initial $3 billion transaction to support Dubai’s ambitious 2025 passenger capacity targets is testament to our belief.”
Under the proposed financing arrangement, coordinated by Department of Finance, 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.