RIYADH: The head of the Saudi Civil Aviation Authority, Abdulaziz Al-Duailej, confirmed that the authority is working on a major privatization project focused on private sector participation, starting with Abha Airport.
Al-Duailej explained during his speech at the “Supply Chains and Logistics Conference” in Riyadh that the Civil Aviation Authority has received more than 100 requests to implement and operate Abha Airport. The project aims to increase the airport’s capacity from 1.5 million passengers to 13 million, to be delivered in three phases.
He added that the winning consortium for the Abha Airport project will be announced within the next three months, to be followed by similar privatization initiatives at Taif, Qassim and Hail airports.
Al-Duailej said the government’s role is focused on governance and regulation of the civil aviation sector, while the private sector contributes expertise in financing, design, implementation and operations.
He noted that aviation was among the first sectors to embark on privatization and public-private partnerships, adding that the first successful project of this kind in the Middle East was Prince Mohammed bin Abdulaziz Airport in Madinah.
Private sector projects
For his part, Deputy Minister of Transport and Logistics Rumaih Al-Rumaih said during the conference that more than SR200 billion ($53.3 billion) worth of projects are proposed for implementation by the private sector.
Al-Rumaih added that local content in the transport sector is expected to increase by 47 percent in 2025, noting that the e-commerce sector has grown by 40 percent this year. He also said the private sector fully operates the Kingdom’s ports.
Private sector fully operates ports
During the conference, the President of the Saudi Ports Authority, Sulaiman Al-Mazroua, said Saudi ports are entirely operated by the private sector and that their capacity has increased by more than 50 percent. He added that the Kingdom’s non-oil revenues have risen by more than 30 percent.
Al-Mazrou explained that special economic zones and logistics zones present significant opportunities for the private sector, with investments exceeding SR10 billion. More than 22 centers are currently operating, while 10 additional centers are under construction.
He added that the next phase requires a deeper partnership with the private sector to adopt modern technologies, including artificial intelligence, meet environmental requirements, ensure port safety, and provide ships with hydrogen and liquefied gas supplies.
