DXB might not be Dubai’s main airport for much longer
If you're a regular passenger on Emirates Airline, you might be taking a diffent route to the airport soon. There are plans to make Al Maktoum International (DWC) the main airport in the city, and the new home of Emirates.
Dubai has just received US$3billion worth of facility credit which will be used to expand and improve its airports. The deal, which saw HSBC bank act as a financial adviser, will mean long-term funding go to two of the city’s main airports; Dubai International Airport (DXB) and Al Maktoum International Airport (DWC).
The move consists of a seven-year conventional loan worth US$1.63 billion and a seven-year ijara facility of US$1.48 billion.
This is the government's first step to making DWC the city’s main airport, and with further funding it's hoped that it will be able to serve up to 146 million passengers by 2025, as well as becoming the home of Emirates Airline.
Speaking on the news the Chairman of Dubai’s Supreme Fiscal Committee HH Sheikh Ahmed bin Saeed Al Maktoum said: “Dubai remains firmly committed to the development of the DWC and to the growth of the global aviation sector, and this initial US$3 billion transaction to support Dubai’s ambitious 2025 passenger capacity targets is testament to our belief.”
With regards to the overall improvements Director General of DOF Abdulrahman Saleh Al Saleh said that the initiative falls in line with Dubai’s vision to maintain its status as one of the world’s most important cultural and commercial centres.
Abu Dhabi Commercial Bank, Citibank, HSBC and Standard Chartered are just four of the 12 banks that will be acting as Joint Mandated Lead Arrangers (an investment bank that facilitates and leads a group of investors in a syndicated loan for major financing) and Joint Bookrunners (lead managers in equity, debt, or hybrid securities issuances).
If you're feeling a little sad that Dubai International will no longer be Emirates Airline's base... on the bright side, you have eight or so years to adjust.