The government of Dubai is looking to raise $3 billion to support the expansion of the emirate’s two international airports.
The funding for the projects will come from both conventional and Islamic sources, the government said. The emirate’s department of finance, the Dubai Aviation City Corporation and sovereign wealth fund Investment Corporation of Dubai will work together to raise the financing package, while HSBC has been contracted as financial adviser on the project.
The funding will be used to expand the Al Maktoum and Dubai International airports. The latter was recently named the world’s busiest airport after it saw passenger traffic grow to 78 million in 2015, a figure is set to be surpassed again this year with passengers numbering 62.9 million from January to September.
Al Maktoum began operating flights in 2011 and welcomed 463,236 passengers during 2015. However, the Dubai government said that by 2025 it wants Al Maktoum to be its primary airport, with both sites due to serve 146 million passengers by 2025, an 86 percent increase on current traffic.
“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 Ahmed bin Saeed Al Maktoum, chairman of Dubai’s Supreme Fiscal Committee.