Dubai secures US$ 3 bn financing for expansion and development of two airports
The Dubai government said on Sunday that it has secured $3 billion in long-term financing for expansion and development of the Dubai International Airport (DXB) as well as the Al Maktoum International Airport (DWC).
The signing of Airport Financing Company (Finco) credit facilities was made by the Department of Finance for the Government of Dubai (DOF), the Investment Corporation of Dubai and Dubai Aviation City Corporation. The facilities represent the debut financing for Finco as part of the long-term funding platform established for Dubai Airports. HSBC acted as the financial advisor.
The facilities also signify the first stage of a larger funding programme which will transform DWC into the primary airport for Dubai and serve up to 146 million passengers by 2025.
“Dubai remains firmly committed to the development of the DWC 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 chairman of Dubai’s Supreme Fiscal Committee Sheikh Ahmed bin Saeed Al Maktoum.
“In line with Dubai’s vision to maintain its status as one of the world’s most important cultural and commercial centres, 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 director general of DOF Abdulrahman Saleh Al Saleh.
The facilities comprise a $1.625 billion seven-year conventional and a $1.475 billion equivalent dirham denominated seven-year Ijara.
The final bank group consisted of 12 international and local banks who acted as joint mandated lead arrangers and joint bookrunners: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China, Citibank, Dubai Islamic Bank, First Abu Dhabi Bank, HSBC, Industrial And Commercial Bank of China Limited, Intesa Sanpaolo, JP Morgan, Noor Bank, and Standard Chartered.
The facilities were heavily oversubscribed by more than 50 per cent and are a continued demonstration of the support for Dubai Government initiatives, a statement said, according to Tradearabia news report.
DXB is the world’s largest international airport with 84.5 million passengers in 2016, representing a 12.7 per cent average compound annual growth rate since 2000. The new Al Maktoum International Airport (DWC) is planned to become the primary airport for Dubai as well as the home to Emirates Airline starting 2025.
Lane Construction and NCTC enlisted to expand Al Maktoum International Airport in Dubai
Lane Construction Corporation and National Contracting Transportation Co (NCTC) have been enlisted to expand Al Maktoum International Airport in Dubai.
Lane, a US-based subsidiary of Salini Impregilo Group, secured a $75m (AED275m) contract to complete 60% of the $125m (AED460m) project.
NCTC, which is headquartered in Sharjah, UAE, is reported to have been appointed to complete the remaining 40%.
The airport expansion project will entail the construction of new terminal facilities, runways, roads, and tunnels.
Work on the expansion is scheduled to commence in January 2017, and complete within 31 months. In preparation for the contract, Lane will work on temporary fences and gates, utilities, site offices, and security.
Ultimately, the expanded Al Maktoum International Airport will be able to accommodate more than 220 million passengers per year, according to Constructionweekonline news report.
The UAE transport hub is aiming to become the world’s largest airport, in terms of both size and passenger capacity, by 2050.
Lane revealed that it has also secured large-scale contracts in the US states of Pennsylvania and Florida. The company’s UAE and US deals are worth a combined total of $370m.
- Industry: Building
- Location: Dubai South, Dubai, UAE
Turner & Townsend wins major expansion contract of Dubai’s Al Maktoum International Airport
Turner & Townsend has won a contract to provide cost management services for the next stage of expansion at Dubai’s Al Maktoum International Airport.
The deal was awarded by Dubai Aviation Engineering Projects (DAEP), the engineering arm of Dubai Aviation City Corporation. It forms part of the wider $32bn (AED1.17tn) development programme for the airport, which is set to become the world’s largest upon completion, according to Constructionweekonline news report.
The next phase of expansion will involve the construction and refurbishment of the immigration hall, departure area, baggage handling building, parking facilities, and approach roads at the existing terminal.
Commenting on the contract award, Mike Collings, managing director of Turner & Townsend’s Middle East operations, said: “We’re honoured to be working so closely with DAEP once again, and this commission further strengthens our aviation profile in the Middle East.
- Industry: Building
- Location: Dubai South, Dubai, UAE
DAEC signs contract with ALEC for Al Maktoum International Airport expansion in Dubai
Dubai Aviation City Corporation (DAEC) has signed a contract with Al Jaber LEGT Engineering and Contracting (ALEC) for the expansion of the passenger terminal building at Al Maktoum International Airport in Dubai, UAE.
Under the agreement, the first phase of this project, which will more than the built-up area of the passenger terminal building from the existing 66,107 sq m to 145,926 sq m, will be completed by June next year.
It is expected that following additional planned extensions, the airport will handle up to 26.5 million passengers per year by 2025, said a statement from DAEC.
Sheikh Ahmed bin Saeed Al Maktoum, the president, Dubai Civil Aviation Authority, chairman and chief executive, Emirates Airline and Group, and DAEC chairman, said: “Today’s announcement marks a historic milestone in the journey of Al Maktoum International which is set to become the world’s largest airport.”
“We are guided by the vision of our leader, His Highness Sheikh Mohammed bin Rashed Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to position Dubai as the aviation capital of the world. We are poised to significantly boost Dubai’s economy by creating a world-class facility capable of handling the growing number of passengers visiting and transiting our city,” he stated.
On project completion, the Al Maktoum International Airport will ultimately have the capacity to handle over 220 million passengers per year.
“Al Maktoum International is being designed to become an airport of the future. We are building a range of amenities and facilities that will increase capacity and significantly enrich the airport experience, making it an attractive proposition for airlines as well as passengers,” stated Sheikh Ahmed.
As part of the proposed expansion work of the passenger terminal, the arrival building, which houses the public hall for arrivals, the baggage claim area and related services, as well as the arrival baggage handling system, will feature a new immigration hall for 55 control counters, visa and passenger utilities, said the statement from DAEC.
The departure building will see the expansion of the public hall, commercial areas and offices as well as the check-in hall, which will house 64 check-in counters. An additional 10 counters will be specifically dedicated to business check-in, it stated, according to Tradearabia news report.
Expansions will also include 12 new boarding lounges and the extension of the emigration transfer and security area. A new baggage screening area for arrivals will be added while the current baggage reclaim area will see three new carrousels, it added.
- Industry: Building
- Location: Dubai South, Dubai, UA
Enoc to commence construction of underground jet fuel pipeline extension in Q4 2016
Horizon Terminals, a subsidiary of Emirates National Oil Company (Enoc) will begin the construction in Q4 of 2106 of its underground 16-km-long jet fuel pipeline extension, which links its storage terminal in Jebel Ali with Al Maktoum International Airport in Dubai South.
The front-end engineering and design (Feed) for the pipeline extension to Al Maktoum International Airport is currently in progress, and is expected to come onstream by the fourth quarter of 2018, said a statement from Enoc.
The 58-km pipeline connecting the storage terminals in Jebel Ali with Dubai International Airport has been operational since March 2015 and has a storage capacity of 141,500 cu m for adequate jet fuel supply to the Dubai International Airport.
The project announcement was made by Sheikh Ahmed bin Saeed Al Maktoum, the chairman of Dubai Airports, president of Dubai Civil Aviation Authority, chairman and chief executive of Emirates airline and group, and also Dubai World in the presence of Khalifa Al Zaffin, the chairman of Dubai South, along with several senior government officials and industry leaders.
Dubai Airports had recently announced that Al Maktoum International Airport has a projected annual capacity of 12 million tonnes of freight and 160 to 260 million passengers.
This coupled with Dubai International Airport’s $7.8-billion airport and airspace expansion programme are key indicators of Dubai’s plans to grow its aviation infrastructure and capabilities to double its passenger handling capacity to 200 million passengers a year by 2045.
“With its strategic location and impressive airport connectivity, Dubai’s vision to become the Middle East aviation hub and leading business destination has now been realised,” remarked Saif Humaid Al Falasi, Enoc Group CEO.
Enoc, he stated, has had a close association with Dubai Airports since its inception, supplying jet fuel to meet the increasing traffic demand at the Dubai International Airport.
“With the extension of 16 km to Al Maktoum International Airport, we look forward to strengthening this relationship, as well as powering towards the future of connectivity of this great emirate,” he added.
According to him, in terms of meeting fuel demand, the majority of Dubai International Airport’s jet fuel supply can be fulfilled by Falcon pipeline, according to Tradearabia news report.
Upon the completion of the extension to Al Maktoum International Airport, the pipeline will be able to meet 60 per cent of Dubai Airport’s combined demand in 2050, he noted.
Al Falasi pointed out that Project Falcon was already providing reliable daily supply of jet fuel to Dubai International Airport and will do the same for Al Maktoum International Airport in the near future.
“As Dubai expands its aviation and tourism capabilities, infrastructures like Project Falcon are crucial facets of the city’s overall development plans,” he added.
Al Maktoum International Airport tops among largest infrastructure schemes currently under construction globally
The Al Maktoum International Airport at Dubai South – formerly known as Dubai World Central (DWC) – is one of the largest infrastructure schemes currently under construction globally, according to the 2016 Global Cities Report compiled by property expert Knight Frank.
A 145-square kilometres (sq-km) master-planned city, Dubai South is a purpose-built aerotropolis being developed to meet the future needs of the emirate’s aviation, tourism, trade and logistics sectors.
Given that the world’s cities are predicted to add 380 million new citizens over the next five years, new mass transit systems, power and utilities, and faster connections to markets will be needed, stated Knight Frank in its report.
The new airport project will help shape the future of the city, generate business clusters and create real estate opportunities, it added.
The selected mega infrastructure projects featured in the report include China’s new railway links to Europe and Singapore, the construction of the Lapsset transportation corridor from Kenya to Ethiopia, the Delhi–Mumbai Industrial Corridor (DMIC), the expansion of Panama and Suez Canals, and the ‘Super Airports’ in Dubai and Singapore, according to Tradearabia news reports.
In 2014, Dubai International overtook London Heathrow as the world’s busiest airport for international passengers – handling around 70 million travellers.
But with the numbers passing through Dubai expected to hit 100 million by 2020, and current scope for expansion at Dubai International limited, Al Maktoum International Airport is being developed as the city’s future super airport.
“A key word in today’s global cities is connectivity. A four-hour plane ride from Dubai allows access to one-third of the world’s population and an eight-hour ride to two-thirds,” remarked Khawar Khan, the research manager at Knight Frank Middle East.
“In addition, over the next decade, Dubai South is planned to be easily accessible by road, rail and sea. All of this will no doubt increase this location’s appeal for businesses,” he added.
Diaa Noufal, the associate partner at Mena Research at Knight Frank, said: “Moreover, while the project is part of a long-term strategic masterplan, it also ties in with the World Expo 2020 that will be hosted at Dubai South and is expected to attract 25 million visitors.”
“Our Global Cities 2016 Report positions Dubai’s on its watch list for global opportunities, highlighting Al Maktoum Airport for its anticipated role into the future of the city’s economy in the next decade. The report draws on local infrastructure projects to enhance Dubai’s transportation network to predict a rise in the city’s image as a commercial hub world-wide,” stated Noufal.
- Industry: Infrastructure
- Location: Dubai, UAE, Dubai South
Dubai World Central renamed as Dubai South
Dubai has renamed Dubai World Central, the 145-square kilometres master-planned city which hosts the now-operational Al Maktoum International Airport, as ‘Dubai South’.
Announcing the new name, Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai Aviation City Corporation, said: “The Government of Dubai has been working to build a new destination – which we are naming today ‘Dubai South’ – where individuals can empower themselves to achieve their legitimate aspirations to the greater good of society.”
“The name is iconic, and will become instantly recognisable for years to come. Dubai South is the emirate’s flagship urban project that will set benchmarks for the rest of the emirate in terms of manifesting the themes of happiness as set out in Dubai Plan 2021,” he added.
As a city basing itself on the happiness of the individual, Dubai South aims to change the fundamental concept around how a community is built and what it stands for. The city’s ecosystem is expected to generate over half a million jobs and sustain a total population twice that number, according to tradearabia news report.
Dubai South’s two essential urban dimensions of living and commerce are reflected in its logo, whose colour is a mixture of green and blue. Green represents living, and is also symbolic of rebirth, growth and sustainability. Commerce and industry is universally represented by blue.
Al Maktoum International Airport, when complete in 2022, will be the world’s largest with a capacity to handle 220 million passengers and 16 million tonnes of cargo per year.
Dubai South is the host city for World Expo 2020 and the biennial Dubai Airshow.
Expansion of Dubai’s Al Maktoum International Airport to be completed by Q1 2022
The expansion of Dubai’s Al Maktoum International Airport will be completed by the first quarter of 2022, according to a senior official.
Khalifa Al Zaffin, executive chairman, Dubai Aviation City Corporation (DACC), said the expansion will increase the airport’s annual passenger capacity from the current five million passengers to 130 million, as reported by Arabian Business.
In comments published in the July edition of Via Dubai, the official newsletter of Dubai Civil Aviation Authority (DCAA), Al Zaffin said: “Our current aim for Al Maktoum International Airport is twofold – to attract more airlines to operate from the airport and ease passenger traffic at Dubai International Airport until such time that Phase 1 of the new airport is ready, according to constructionweekonline news reports.
“In that context, AMIA is currently undergoing an expansionary phase that will see its annual passenger handling capacity rise from the current five million to seven million by early 2016,” he added.
Dubai Airports announced that Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved its plan to invest $32bn (AED120bn) expanding the emirate’s second airport.
Al Maktoum International Airport at DWC is expected to become the largest in the world and will be developed in two phases.
Phase one will include two satellite buildings which will jointly be able to handle around 120 million passengers annually, and accommodate up to 100 A380 superjumbos at any given time.
It is anticipated the airport will ultimately be able to accommodate more than 200 million passengers a year when complete, a quarter more than the previous estimate of 160 million.
Separately, Via Dubai quoted Sheikh Ahmed bin Saeed Al Maktoum, president of DCAA and chairman of Dubai Airports, said aviation’s importance will grow significantly in the run up to Expo 2020.
“We are developing Al Maktoum International Airport in Dubai World Central (DWC) into the world’s biggest airport with an annual capacity of over 220 million passengers.
Alongside, we continue to develop the Dubai International Airport which will handle 100 million passengers when the expansion plans get over,” he said.
- Industry: Building
- Location: Dubai,UAE
Design contract for Al Maktoum international airport awarded
UK-based Leslie Jones Architecture has been commissioned to work on the commercial design strategy for Al Maktoum International Airport.
The company is establishing a strategy to ensure that airport businesses will be positioned to engage with the anticipated high volumes of global travellers, according to news reports on Construction Week Online.
Simon Scott, head of international business at the firm will be leading the project.
He said: “Leslie Jones’ appointment reflects the firm’s technical skill and experience in delivering leading mixed-use design solutions for specialist global projects.
“A profound understanding of operators’ challenges, within an aviation context, is critical when designing such an environment. Our design strategy will address this by supporting the creation of an integrated commercial environment that will elevate consumer engagement and optimise space intelligently.”
- Industry: Building
- Location: Dubai, UAE
Dubai approves second airport expansion plan at a cost of US$ 32 bn
Dubai Airports announced the expansion of its Al Maktoum International Airport at Dubai World Central (DWC) had been approved by the Dubai’s ruler at a planned cost of US$ 32 billion (AED 117.5 billion) on expanding Al Maktoum International Airport at Dubai World Central (DWC). The expansion would make it the world’s largest airport.
HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, scrutinized the plans earlier this month for approval, that should see the airport’s capacity rise to more than 200 million passengers a year when it is complete. The development is planned over two phases.Phase one will include two satellite buildings which will jointly be able to handle around 120 million passengers annually and accommodate up to 100 A380 superjumbos at any given time.
This first phase will take between six and eight years to complete and the project will cover an area of 56 square kilometers. Phase two will then see the airport’s capacity increased to 200mn passengers a year, a quarter more than the previously planned ultimate capacity of 160mn.
The announcement comes as passenger traffic continues to grow at Dubai International Airport and is expected to reach almost 100mn by the end of 2020.
“Our future lies at DWC. The announcement of this AED 120 billion development of DWC is both timely and a strong endorsement of Dubai’s aviation industry. With limited options for further growth at Dubai International, we are taking that next step to securing our future by building a brand new airport that will not only create the capacity we will need in the coming decades but also provide state of the art facilities that revolutionise the airport experience on an unprecedented scale,” said Paul Griffiths, CEO of Dubai Airports.
Griffiths added that the aviation sector was a vital part of Dubai’s economic growth and was expected to support more than 322,000 jobs and contribute 28% of the Emirate’s gross domestic product (GDP) by the end of the decade.
Al Maktoum International Airport began accepting passengers in October last year and currently has a capacity of about 5mn people per year. It opened some four years later than originally planned after a financial crisis forced Dubai to revise some of its mega-projects. Dubai officials have not said how they will fund the new expansion plans, according to Reuters reports.
Big international carriers, including Emirates, have so far not indicated any plans to move to Al Maktoum, with just a handful of airlines currently operating out of the facility. Authorities have not said what will happen to Dubai International if the big airlines do leave it.