The Government of Dubai has recently announced that it has awarded financial transaction worth $3 billion to two international airports in Dubai for capacity-boosting and capex fuelled expansion, allowing them to service up to 146 passengers by 2025, WAM reports.
The world’s largest international airport, the Dubai International Airport (DXB) had already accommodated around 78 million passengers in 2015, 13% average compound annual growth rate since 2000. The new Al Maktoum International Airport (DWC) is planned to become the primary airport for Dubai, as well as the home to Emirates Airline by 2025.
Aviation sector growth
“Dubai remains firmly committed to the development of the Al Maktoum International Airport and the growth of the global aviation sector, and this initial US$ 3billion 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 essential, 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.
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