Govt. of Dubai sponsors US$3 bn airports finance deal

WAM -- Dubai’s two international airports are set for a capacity-boosting, capex-fueled expansion that will enable them to serve up to 146 million passengers by 2025, due in large part to a proposed initial US$ 3bn financing transaction announced on Tuesday by the government of Dubai.

Already, Dubai International Airport (DXB) is the world’s largest international airport at 78m passengers in 2015, with a 13 percent 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.

"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 US$ 3bn transaction to support Dubai’s ambitious 2025 passenger capacity targets is testament to our belief," said Chairman of Dubai’s Supreme Fiscal Committee HH Sheikh Ahmed bin Saeed Al Maktoum.

"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," said Director General, Department of Finance for the Government of Dubai (DoF) Abdulrahman Saleh Al Saleh.

Under the proposed financing arrangement, 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.

WAM/tfaham