Abu Dhabi: The Dubai government announced it has appointed HSBC as a financial advisor to help raise $3 billion (Dh11 billion) in order to fund the expansion of Dubai’s two airports. The $3 billion will come from “various liquidity sources, both conventional and Islamic,” the government said.
Under the proposed financing arrangement, coordinated by the Department of Finance, Investment Corporation of Dubai, and Dubai Aviation City Corporation, the three parties will work together to raise funds.
In a statement on Tuesday, the Dubai government said that the funds will largely help in boosting capacity and expanding Dubai International Airport and Al Maktoum International Airport to enable them to collectively serve up to 146 million passengers by 2025.
In 2015, Dubai International saw 78 million passengers, with a 13 per cent average growth rate annually since 2000. The new Al Maktoum International is planned to become Dubai’s primary airport and home to Emirates Airline from 2025, the government 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,” said Shaikh Ahmad Bin Saeed Al Maktoum, chairman of Dubai’s Supreme Fiscal Committee.