ALBAWABA – The government is planning to open its domestic airports sector up to more competitors as part of a regulatory overhaul aimed at driving in $100 billion in aviation investments in Saudi Arabia by the end of 2030, Bloomberg reported Monday.
The plans laid out by the General Authority of Civil Aviation include the privatization of airports and ground-handling operations, an official statement said.
Incentive plans will also be put in place to drive better quality standards at airports, as reported by Bloomberg.
“The regulations create an open, dynamic and competitive market, setting a level playing field for global operators and investors in the Kingdom,” said GACA President Abdulaziz al-Duailej.
As part of Saudi Arabia’s bid to diversify income away from hydrocarbon and build the Saudi non-oil economy, it aims for tourism to account for 10% of gross domestic product by 2030.
Riyadh Air is part of a plan worth hundreds of billions in aviation investments in Saudi Arabia - Shutterstock
Crown Prince Mohammad bin Salman also aims to transform the country into a logistics hub, and to do so, he and the government have been working to attract billions into the infrastructure and transportation sectors.
Saudi Arabia recently introduced a new airline, called Riyadh Air, to cater to an underserved segment of the Saudi tourism market. While Saudia, the main airline, has been around for decades, the carrier mainly serves local travelers and those focused on pilgrimage, according to Bloomberg.
The aviation regulator has already fielded inquiries from potential investors in aviation assets, though the formal unveiling of the new plan will only accelerate interest, said Awad AlSulami, GACA’s executive vice president for economic policies and logistics services.
The new policy expands the qualifying rules for airport operators to support the Kingdom’s plans to privatize all Saudi airports by 2030. Abha International Airport, Taif International Airport, Ha’il Regional Airport, Al-Qassim International Airport have commenced the process.
