The Dubai government announced on Sunday that it has secured about $3 billion(Dh11 billion) in credit facilities for long term to expand two of their airports – Dubai International and Al Maktoum International (DWC).
A statement from the Dubai Media Office said the credit facilities signify the first stage of a larger funding programme that will turn DWC into the emirate’s primary airport, serving up to 146 million passengers by 2025.
The deal comprises a $1.6 billion, seven-year conventional loan, and a $1.48 billion equivalent, seven-year ijara dominated in dirhams. Ijara is a common lease-based structure used in Islamic finance.
HSBC acted as the financial adviser on the deal.
In a statement, the Department of Finance for the Government of Dubai, the Investment Corporation of Dubai and Dubai Aviation City Corporation, have announced the successful signing of $3 billion credit facilities that will be used for the expansion and development of Dubai International Airport as well as Al Maktoum International Airport and signify the first stage of a larger funding programme which will transform DWC into the primary airport for Dubai, serving up to 146 million passengers by 2025.
“Dubai remains firmly committed to the development of DWC and to growth of the global aviation sector, and this initial $3 billion transaction to support Dubai’s ambitious 2025 passenger capacity target is testament to our belief,” said Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority, Chairman of Emirates Group and Chairman of Dubai’s Supreme Fiscal Committee.