Dubai to raise $3 bn for airport expansion

The Al Maktoum International Airport is planned to become the primary airport for Dubai, and home to Emirates Airline from 2025.

Dubai plans to raise $3 billion for the capacity-boosting of its two international airports that will enable them to serve up to 146 million passengers by 2025.

Already, Dubai International Airport (DXB) is the world's largest international airport at 78 million passengers in 2015, with a 13 per cent average compound annual growth rate since 2000, a statement released by the company said.

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.

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

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.