Dubai asks banks for proposals for financing Al Maktoum Airport expansion

The government of Dubai has sent a request for proposals to banks for the financing of the expansion of Al Maktoum International Airport, and expects to receive banks' feedback over coming weeks, the Dubai Department of Finance told Reuters.

The size, tenor and expected timeline of the financing - which according to a previous official statement is expected to be in the $3 billion region - have not yet been established, the department said in an emailed statement on Thursday.

The government has chosen HSBC to arrange the funding, it said earlier this week. The borrowing entity for the airport financing will be a consortium comprising the Department of Finance, Investment Corp of Dubai and Dubai Aviation City Corp.

The financing will include an Islamic component and is expected to attract both commercial banks and the backing of export credit agencies, banking sources said.

Al Maktoum is eventually to become Dubai's primary international airport; that role is currently served by Dubai International.