Airports Privatization & Modernization Saudi Arabia

Saudi Arabia is seeing renewed activity in the airports and aviation sector, thanks to the proposed privatization and private ownership program by 2020.The government has implemented this strategy to further enhance productivity and efficiency in the very important aviation industry and bring down the burden on state spending in the current scenario.The drive will help division of the regulators and airport operators, facilitating seamless operations.

Concentrated approach

The country’s premier aviation regulatory authority, the General Authority for Civil Aviation (GACA) has proposed plans to privatize 27 airports across the kingdom by 2020. This announcement was made in mid- November last year. GACA also plans to privatize other services such as IT, navigation etc in the stipulated time frame.

Privatization timelines

King Khalid International airport’s terminal 5 operations will be handed over to Dublin Airport Authority soon. Privatization of the Jeddah and Damman airports is set to be completed by 2017. Rest of the domestic and smaller airports will also be privatized between 2018 – 2020. The process of privatization is set to help the growing passenger traffic and modernization of the airports to accommodate international in flows.

Modernization and Expansion

As an example Mohammad Bin Abdul-Aziz Airport in Medina was expanded and modernized on a BOT (Build-Operate-Transfer) scheme by the TIBAH consortium, a joint venture of local companies Al Rajhi Holding, Saudi Oger and Turkey’s TAV Airports. Program director- Airport Modernization Summit Arvind Shekar from the Nispana says, “Many such projects, proposals and opportunities are going to be discussed in the forthcoming Airport Modernization Summit”, this exclusive summit is scheduled to take place in Riyadh on ….. where discussion about the evolution of smart and futuristic airports will be in the forefront.

Welcome investments

According to Mr. Arvind Shekar “The summit will also explore how the process of privatization will be conducive for regional and international investors”. Airport Modernization Summit will be a perfect platform to identify local investment opportunities, win modernization projects and network with the key stakeholders from the airports and aviation sector of the Kingdom.