The UK’s export credit agency UK Export Finance (UKEF) has issued a $3.5bn expression of interest letter to support the participation of UK businesses in the $35bn expansion of Al Maktoum International, which is also known as Dubai World Central (DWC).
Chris Bryant, UK Minister for Trade handed the letter to Khalifa Al-Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai Aviation Engineering Projects, and Paul Griffiths, CEO of Dubai Airports.
Letters of interest from UKEF, although not binding commitments, help ensure that UK exporters are given every opportunity to bid for contracts on a project. This is typically achieved by providing financial solutions in exchange for an agreed level of UK content used on the project.
Previous letter
It is not the first time UKEF has issued a letter of interest for the expansion of Al-Maktoum International airport. In 2014 it issued a $2bn letter of interest. In a statement at the time, UKEF said five prime UK-based contractors were being supported along with UK suppliers in sectors across the length and breadth of the supply chain.
The five prime contractors were Carillion, Kier, Balfour Beatty, Laing O’Rourke, and Interserve. Of those five companies, Carillion entered liquidation in 2018 and Interserve entered administration in 2019. Balfour Beatty sold its shareholding in Dubai-based Dutco Balfour Beatty in 2017.
Although some progress was made on the project after the UKEF offer in 2014, the scheme stalled and was revived again in April 2024 when Dubai approved new designs for the airport.
Project progress
Since then, the project client, Dubai Aviation Engineering Projects (DAEP), has been awarding and tendering and tendering contracts for the first construction packages. It has awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.
The enabling works for the terminal building are being undertaken by Abu Dhabi-based Tristar E&C.
DAEP is also close to formally awarding a selected contractor the contract to deliver the substructure works for the West Terminal and Concourse One, Concourse Two and Concourse Three.
Tendering is also ongoing for an automated people-mover (APM) system. The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of several tracks, taking passengers from the terminals to the concourses.
Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.
The airport’s construction is planned to be undertaken in three phases. Construction works on the project’s first phase are expected to be completed by 2032.
The airport will cover an area of 70 square kilometres (sq km) south of Dubai and will have five parallel runways, five terminal buildings and 400 aircraft gates.
It will be five times the size of the existing Dubai International airport and will have the world’s largest passenger-handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.
Dubai has said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.