LONDON, March 16, 2017 /PRNewswire/ -- "Saudi Arabia Airport Privatization Opportunity Outlook 2022" report gives comprehensive insight on the privatization opportunity existing in the Saudi Arabia aviation sector. Report highlights the ongoing initiatives undertaken by the Saudi Arabia government to promote and attract foreign investments in civil aviation sector. The domestic and international passenger travel in Saudi Arabia is increasing by 10% CAGR in last six years with total travel expected to surpass 140 Million by 2022.
Saudi Arabia is currently in the middle of a new wave to airport construction, expansion and renovation of across the kingdom. The kingdom is planning to leverage its unique strategic location and its existing strengths to become a global transportation and global hub connecting three continents- Asia, Africa and Europe.
While experiencing oil crisis for years, Saudi Arabia is planning to develop an economy independent of oil trade. The kingdom has made large revenues from oil commerce throughout the world. Different sections of commercial industries are emerging with great potential to conquer a larger market share in the country. One such industry to boost the kingdom's economy is aviation industry. The government of Saudi Arabia is working to streamline and sophisticate the industry through infrastructure development, privatization initiatives and market liberalization. The concerned authorities are planning to expand and build more than 25 airports by 2022. Also, development programs are aiming to privatize all of the airports in the Saudi Arabia by the next 3-5 years.
A vigorous privatization process leading to private sector participation in all of the Kingdom's airports has commenced with both Prince Mohammed Bin Abdulaziz Airport in Madinah (2011) and Terminal 5 at King Khaled International Airport in Riyadh (2016). These airports have been concessioner to the private sector. King Abdulaziz International Airport at Jeddah and King Fahd International Airport at Dammam are slated for privatization in late 2017. The remaining airports are expected to privatize in 2018-2022. In a direct move to attract more foreign investors and expertise, GACA recently announced that no obligation exists to have a local Saudi partner. For some airports, the limit for local investors has been capped over 25% leaving the rest of ample opportunities for investments.
Foreign companies will be allowed to invest in the privatization Saudi Arabia's airports without the need for local partners and local investment will be capped to encourage the overseas investment. The choice has been left with the company itself to have a local investment partner. The regulatory authorities have capped the ownership of some of the airports to make sure the foreign investors have the majority of holdings. All of the qualifying international companies, operators and service providers can participate in the privatization process. The country's domestic and international airports will be privatized and will be 'corporatized', or restructured to operate like a private company, in advance of the privatization process, while remaining will be state owned.
"Saudi Arabia Airport Privatization Opportunity Outlook 2022" report highlights:
- Saudi Arabia Aviation Industry Overview
- Privatization in Saudi Arabia
- Investment & Expansion Opportunities for International Investors
- Civil Aviation Laws & Policies Framework
- Ongoing Privatization Projects
- Privatization Build - Operate–Transfer (BOT) Business Model
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