According to reports, Dubai is planning to spend $35.7 billion to develop its second airport and the Dubai South logistics hub. The emirate is likely to depend on debt funding for the greater part of the financing.
According to Bloomberg report on Thursday, the investments will be made in Dubai World Central and associated facilities, including Al Maktoum International airport, over the next 12 years.
Sources close to the matter have been reported to say that the spending plan is outlined in documents inviting banks to bid for a $3 billion loan the government is seeking to raise for initial expansion.
When completed, Al Maktoum International airport at the hub of Dubai World Central will become the world’s largest airport with an optimum capacity of more than 220 million passengers and 16 million tons of cargo per year.
Last month, Dubai’s government declared plans for an initial $3 billion financing deal to sponsor the expansion of the emirate’s two international airports.
As part of the funding, the airports are set to grow to serve up to 146 million passengers by 2025.
The financing will be raised by a consortium of Dubai state entities, composed of the Department of Finance, state-owned fund Investment Corporation of Dubai, and the Dubai Aviation City Corporation.
Already, Dubai International Airport is the world’s largest international airport at 78 million passengers in 2015, with a 13 percent average compound annual growth rate since 2000.
The new Al Maktoum International Airport is aimed to become not only the primary airport for Dubai, but the home to Emirates Airline from 2025.