Dubai targets airport expansion with USD3bn in financing

Dubai International Airport (DXB) has reported a USD3.0 billion financing transaction that sets up the country´s two international airports for capacity expansion to 146,000 passengers by 2025, the company said.

The company said the Dubai´s new Al Maktoum International Airport is expected to be the primary airport for Dubai, and home to Emirates Airline.

Dubai International Airport had 78 million passengers in 2015, with a 13 percent average compound annual growth rate since 2000.

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.

The Department of Finance for the Government of Dubai (DOF) was established in 1995 to supervise all financial and accounting affairs of the Government of Dubai, in addition to issuing consolidated financial statements for the emirate´s government. DOF is responsible for the development of the government´s general annual budget and its execution in cooperation with all relevant local government entities