GACA unveils aviation economic policy, issues three regulations

Logo of The General Authority of Civil Aviation (GACA)

The General Authority of Civil Aviation (GACA) announced the economic policy for Saudi Arabia’s civil aviation sector, and the adoption of three economic regulations for airports, ground services, air freight, and air transport services, which will take effect as of today, Oct. 30.

The economic policy aims to boost the operation of the Kingdom’s airports and improve the performance of national air carriers, as part of the authority’s efforts to transform the Kingdom into a global hub for transportation and freight services, GACA said in a statement.

To strengthen its regulatory role in the sector, the authority issued the economic regulations for airports to develop the foundations regulating the work of operators.

This supports privatization, facilitates the procedures for new investors to join the aviation sector in the Kingdom, and enables airport operators to set wages according to their plans.

The GACA issued the economic regulations for ground handling and air cargo services, which stipulate adherence to the principle of freedom of entry to the market by those wishing to provide the services in the Kingdom.

It also issued economic regulations for air transport services, which aim to spur air traffic by facilitating the requirements for issuing economic licenses for air carriers, and canceling the economic requirements for non-commercial flights.

These measures are in line with the National Strategy for the Aviation Sector to enable it to be a leading sector in the Middle East, and to contribute to diversifying sources of income in Saudi Arabia.

The economic policy and the set of regulations issued by the authority will also boost the contribution of the transportation and logistics sector to the GDP to 10%, provide direct and indirect job opportunities in the aviation sector, and attract investments up to $100 billion from the public and private sectors by 2030.