A look at Saudi Arabia’s plans to become an aviation hub

Saudi Arabia plans to build and redevelop several airports across the country over coming years, amid wider plans to transform the world’s top oil exporter into a regional aviation and logistics hub.

The King Abdul Aziz International Airport in Jeddah, which has opened to commercial flights as part of its experimental operations, is the first of many airports to be opened or built across the country under this plan, according to a news feature by the Kingdom’s Center for International Communication (CIC).

The airport’s soft launch, which began in April, will be completed in three phases to ensure smooth operations after the final launch. The cost of the first phase stood at $10.1 billion, the CIC said.

The King Abdul Aziz International Airport, which occupies a 105-square-kilometre area, will serve 30 million passengers per year in its first phase of operation. In the second and third phases, the passenger capacity will rise to 55 and 100 million respectively.

In the soft opening phase, six gates will handle a limited number of flights. The number of gates will gradually increase to 46 after the formal opening of the airport.

A new terminal complex to serve all carriers was will be built over a 10,000-square-metre area. It will be able to serve 74 aircraft at a time.

Given that Jeddah is a major destination for millions of Hajj and Umrah pilgrims each year, the new airport will play a crucial role in serving the ever-growing number of visitors. The development is part of a mega transport project in the area that includes the development of railway and modern road systems.

In addition to the new airport in Jeddah, the Kingdom has undertaken two airport projects in Qassim and Hail, as well as the development of King Khalid International Airport in Riyadh into a smart airport. Eventually, all airports are to be turned into smart airports. 

Privatizing the sector

According to the Saudi Ministry of Transport, about 92 million passengers used the Kingdom’s airports in 2017, registering a 7.7 percent growth in passenger traffic over the previous year.

The country’s General Authority of Civil Aviation (GACA) has plans to overhaul the sector, which include privatizing all the airports.

“The ultimate objective is to allow private companies to run all airports and special controls over their operations,” the report said, adding that the authority will hasten the privatization process to comply with the Vision 2030 goals.

Last year, Saudi Arabia awarded many contracts for the development of new airports, in collaboration with the private sector.

The Prince Mohammed bin Abdulaziz International Airport in Medina will be the Kingdom’s first airport to be built under a public-private partnership.

Meanwhile, GACA last year also expressed its intention to upgrade the regional airports to serve international flights. This move will raise the total number of international airports in Saudi Arabia to 13, besides 13 domestic airports.

With a GDP of SAR 2.4 trillion, Saudi Arabia’s economy is already the largest in the Middle East. As the country pursues economic diversification under the Vision 2030 plan, aviation and transportation will play an essential role in transforming the Saudi economy, the report concluded.