JEDDAH, 29 October 2003 — Saudi Arabia will privatize its international and local airports but airport security will remain in state hands, the chief of the Presidency of Civil Aviation said.
“The PCA will seek broad private sector participation in the operation and management of local and international airports by privatizing them, except for security operations,” Abdullah Rahaimy said.
The presidency has already started privatizing some airport services, Rahaimy said but did not give a timeframe for the privatization process.
“In future we hope to make this comprehensive, covering even the services the state now provides. We want to privatize them,” he said. The plan was “aimed at broadening private sector participation in the management and operation of local and international airports,” Al-Madinah Arabic daily quoted him as saying.
Prince Sultan, second deputy premier and minister of defense and aviation, recently signed contracts worth SR638 million with five Saudi groups of companies to operate regional and local airports for three years.
“The contracts covered the supply of technical manpower specialized in operation and maintenance of airports, and the supply of equipment and spare parts,” the Saudi Press Agency said.
The agency also said the terms of the contracts specified that the companies employ Saudi manpower in most areas of their work, especially in the electrical and mechanical fields.
The contracts were awarded to Saudi Services Company and Muhammad Binladen Company; Saudi Maintenance and Services Company and Binladen Group; Rajab and Silsilah and Partners; Al-Zamil Company for Maintenance and Operation; and Al-Qusay International for Contracting.
There are 27 airports in the Kingdom including three international airports in Riyadh, Jeddah and Dammam. The Presidency of Civil Aviation recently opened a new airport in Dawadmi at a cost of SR150 million.
Rahaimy also disclosed plans to establish a new regional airport in Al-Ola near Madinah to promote business and tourism in the region. The historical sites of Madain Saleh are located in Al-Ola. “We have already asked a specialized company to conduct a feasibility study for a new airport in Al-Ola,” he said.
The PCA chief said demands to build airports in other parts of the Kingdom would be considered in light of feasibility studies and passenger traffic.
“The cost of constructing airports is much higher than their revenues. But the government is keen to facilitate air transport,” he added.
Rahaimy said the PCA had no plans to open new international airports at present.
The PCA is, however, considering the establishment of a new regional airport in the northwestern coastal city of Dhuba after its seaport has reportedly become a major hub for Gulf passengers traveling to Egypt and other African countries.
