Dubai work­ing with HSBC on $7bn fi­nanc­ing for Expo 2020

Kuwait Times - - BUSINESS -

Dubai is work­ing with HSBC on the fi­nanc­ing of Expo 2020 Dubai, a $7 bil­lion ex­hi­bi­tion cen­tre project ex­pected to at­tract 25 mil­lion vis­i­tors, sources fa­mil­iar with the mat­ter said. The site will host Expo Dubai which will run from Oc­to­ber 2020 to April 2021 and will be the first World Expo hosted in the Mid­dle East, ac­cord­ing to the Expo 2020 web­site.

The project pro­vides more ev­i­dence that Dubai is back in ex­pan­sion mode af­ter run­ning into trou­ble dur­ing the 2009 global fi­nan­cial cri­sis. The expo is a ma­jor part of Dubai’s plans to ex­pand its in­fra­struc­ture and boost its cre­den­tials as a tourist des­ti­na­tion. The fi­nanc­ing will come from bank loans and from var­i­ous ex­port credit agen­cies, the sources said. HSBC has been ap­pointed to co­or­di­nate the ex­port credit agen­cies and fi­nanc­ing sup­ported by them, the sources said, ad­ding that the split be­tween the com­mer­cial loans and the ex­port credit fi­nanc­ing was yet to be de­fined.

Ex­port credit-backed fi­nanc­ing pro­vides guar­an­tees that sup­port the ex­port and sup­ply of do­mes­tic goods or con­trac­tors or in some cases di­rect lend­ing. Expo 2020 Dubai was not im­me­di­ately avail­able to com­ment. HSBC de­clined to com­ment.

The ex­hi­bi­tion cen­tre project, in the Dubai South district, si­t­u­ated mid­way be­tween Abu Dhabi and Dubai, will be 4 kilo­me­tres long and 1.8 kilo­me­tres wide, ac­cord­ing to its web­site. The de­vel­op­ment will in­clude a num­ber of in­fra­struc­ture projects, an ex­hi­bi­tion cen­tre, aca­demic and re­search in­sti­tu­tions and a tech­nol­ogy clus­ter, the web­site said. It will pos­si­bly also need ad­di­tional fund­ing on top of the $7 bil­lion for projects linked to the event and led by gov­ern­ment en­ti­ties such as Dubai Mu­nic­i­pal­ity, the Dubai Elec­tric­ity and Water Author­ity, and Dubai’s Roads and Trans­port Author­ity, two of the sources said.

The expo site is lo­cated near Dubai’s new air­port, Al-Mak­toum In­ter­na­tional Air­port. There are pro­pos­als for a $3 bil­lion ex­pan­sion of the air­port and HSBC is also ad­vis­ing the gov­ern­ment on the fi­nanc­ing for this project. — Reuters

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.