Saudi Arabia looking to attract $100 billion in aviation investments
by 2030
Saudi Arabia is embarking on an ambitious journey to
revitalize its aviation sector, aiming to attract $100 billion in both private
and public investments by 2030.
These aspirations were recently highlighted during an
aviation conference by Abdulaziz A. Al Duailej, President of General Authority of Civil
Aviation (GACA), who emphasized the need for expanding airports and the
national fleet to triple the number of destinations and quadruple cargo
capacity.
To support these goals, the General Authority of Civil
Aviation (GACA) in Saudi Arabia has introduced significant reforms aimed at
enhancing competitiveness, attracting investments, and improving transparency.
These reforms include the implementation of competition standards at airports,
measures to prevent anti-competitive pricing, simplifying economic licensing
for air transport operations, and expanding the qualifying criteria for airport
operators to facilitate the privatization of more airports within the kingdom.
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According to GACA, these new economic policies are designed
to encourage competition, foster open markets for growth and innovation,
enhance transparency in commercial relationships and pricing, and lead to
better resource allocation, investment, and financial sustainability throughout
the aviation sector.
Saudi Arabia envisions becoming a global transportation and
logistics hub by 2030, with Riyadh airport serving as the operational base for
a new airline called Riyadh Air, intended to compete with regional giants like
Emirates and Qatar Airways.
GACA believes these policy reforms will create new
opportunities for investors and operators, leveling the playing field and
promoting healthy competition in the aviation sector. The reforms have been
aligned with international best practices and are expected to drive further
investment, growth, and performance in the sector.
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Abdulaziz Al Duailej, President of GACA, emphasized that
these economic regulations are integral to realizing the Saudi Aviation
Strategy, which seeks to mobilize $100 billion in investments from public and
private sources by 2030. He stressed that these changes would result in more
competition, choices, and value for passengers and consumers, contributing to
the Kingdom's broader Vision 2030 plan to diversify its economy and reduce its
reliance on oil.
As part of the reform package, the qualifying rules for
airport operators have been expanded to facilitate airport privatization, while
streamlining procedures for new entrants to conduct business. This will empower
airports to propose charges in line with GACA's policy frameworks and provide
flexibility to boost non-aeronautical revenues.
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Moreover, ground handling services and air cargo will become
more competitive, supported by the principle of 'general freedom of access' and
competition across Saudi Arabia's airports. The establishment of Riyadh Air, a
company wholly owned by the Public Investment Fund (PIF), is another step
toward achieving these goals. Riyadh Air has already placed a significant order
of up to 72 Boeing 787-9 Dreamliner aircraft in a multi-billion dollar deal.
The reform package also includes streamlining license
processes for ground handling and air cargo service providers. Foreign carriers
will benefit from streamlined processes, including the removal of the economic
license requirement for charter flights. General aviation operators will also
enjoy greater flexibility, as 'empty-leg' restrictions are lifted for
international flights, facilitating improved network connectivity.
Additionally, a new certificate will be introduced to allocate international
traffic rights on constrained routes for national carriers, ensuring equal
opportunities for all.
Source: https://fl360aero.com/
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