Saudi Arabia plans to convert its airport operators into holding companies and transfer them to the Public Investment Fund (PIF), according to a Reuters report, citing Abdulaziz Al-Duailej, the head of Saudi Arabia’s General Authority of Civil Aviation.
Some of the new companies may eventually be privatized, according to Al-Duailej.
Per Reuters:
“The kingdom’s 22 airports will be set up as airport holding companies, which will oversee construction, operation and management. They will then be transferred to the Public Investment Fund (PIF) to ‘put on the market at a later time,’ [Asharq Alawsat] reported….Investments in the Saudi aviation sector, including in airports, freight, catering, maintenance and ground services, will be offered to local and foreign investors, Duailej told Asharq Al-Awsat.”
One example Al-Duailej cited is Abha International Airport, which is being put on the privatization path and is going through final technical and economic studies. Abha, in Saudi Arabia’s Southwest, is close to the border of neighboring Yemen and has suffered from both failed attempted attacks and successful attacks from Yemen’s Houthi rebels.
Al-Duailej also said airports in Taif and Qassim are being considered for privatization, he said, “adding that requests to invest in the kingdom’s aviation sector are being studied,” per Reuters.
Saudi Arabia’s privatization goals by the end of 2025, according to the government.
Saudi Arabia is pushing forward with privatization schemes in other sectors. The Kingdom’s “Privatization Program” is one of Saudi Arabia’s Vision Realization Programs (VRP), which are action plans to achieve goals stated in Vision 2030, the all-important social and economic reform drive. The Privatization Program aims to improve the quality of services provided in those companies being privatized “and contribute to the reduction of costs, also encouraging economic diversity and development, and boosting competitiveness to face regional and international competition. The program also seeks to attract Foreign Direct Investment and improve the balance of payments,” the Saudi government says.
