The UK’s export credit agency, UK Export Finance (UKEF), has confirmed it has provided a $110m buyer credit to support UK construction firm Carillion’s Dubai World Trade Centre project contract.

Carillion’s joint-venture company in Dubai, Al-Futtaim Carillion, was awarded the contract to build the first phase of the Dubai Trade Centre District in March, and MEED reported it was likely the contract would come with some form of support from UKEF.

The loan is the first transaction to be completed under the agency’s new direct lending scheme, which was announced last year.

For the first time, the scheme allows the export credit agency to provide loans of up to £50m ($80m) to foreign buyers to purchase UK exports.  

Historically, the agency has only provided various forms of guarantees for export finance deals rather than providing any direct funding.

The Carillion financing has been arranged by Germany’s Deutsche Bank, which has also provided 50 per cent of the required funding.  There are a total of 20 lenders that form a panel of institutions that have agreed to support the UK’s new £3bn ($4.8bn) scheme.

Carillion has previously worked with UKEF, with the agency providing guarantees to support Al-Futtaim Carillion’s  $181.1m contract with Abu Dhabi’s Aabar Properties to build a five-star Hard Rock Hotel, signed in February this year.

Last year, the agency backed Al-Futtaim Carillion’s contract to work on The Avenues development for Dubai developer Meraas.

UKEF is also expected to support UK interests related to the development of Dubai’s airports.

According to sources, London has offered up to $2bn of export credit guarantees to Dubai Airports Engineering Projects, MEED reported in September.

Dubai’s main airport, Dubai International, is continuing to be expanded to meet growing demand. The emirate’s new airport, Al-Maktoum International, based at Dubai World Central close to Jebel Ali, opened to passengers towards the end of 2013. 

It will be expanded to ultimately accommodate more than 200 million passengers a year. A planned AED120bn ($32bn) expansion, which encompasses two phases, was approved by the ruler of Dubai, Sheikh Mohammed bin Rashid al-Maktoum, in early September.

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