Emirates, Dubai's flagship carrier, said it has signed a letter of intent with General Electric to oversee design and construction of an estimated $120 million engine repair facility in the emirate.

The facility will be constructed over a 90,000 square meter land and will complement an existing engine overhaul facility in Dubai, the airline said in a statement that was released from the Paris Air Show on Tuesday.

The fast-growing Dubai-based airline said the growth of its fleet and subsequent number of operating engines has necessitated the need for an in-house engine facility.

"Emirates has signed a Letter of Intent with General Electric to oversee the design and construction of the Shop using the most advanced technology, equipment and best practices in the industry," said the statement.

The facility will have the capability of performing 300 engine repairs each year for the GE90 and GP7000 engines fitted to the Boeing B777 and Airbus A380 aircraft.

Emirates, the biggest customer for the A380 superjumbo, surprised its peers by boosting its orders to 90 planes last June and said they were looking at ordering more.

Emirates' Chairman Sheikh Ahmed Bin Saeed Al Maktoum said in the statement that the facility would create over 500 new job opportunities.

Earlier in the month, the airline launched a five-year $1 billion bond which was six times oversubscribed.