JEDDAH: New development projects supported by the private sector at King Abdulaziz International Airport (KAIA) in Jeddah will create at least 34,000 jobs, the General Authority of Civil Aviation (GACA) said on Monday.
The new projects, which are part of GACA’s strategy to transform domestic and international airports into airport cities, will include five-star hotels, shopping malls, recreation centers, tourist facilities, exhibition centers and aviation-related factories.
The GACA has allocated two sites measuring a total area of 2.4 million square meters in the south and east of KAIA for investment.
The authority has already completed studies on the airport projects and short-listed a number of national and international companies to implement them. They have until May 31 to present their offers.
The GACA has already contracted the International Finance Corporation (IFC), a member of the World Bank, to conduct commercial, technical, legal and financial studies on making use of land surrounding international airports in Jeddah, Riyadh and Dammam.
The GACA organized a conducted tour on Sunday for delegates of companies interested in carrying out projects at KAIA.
“The new airport projects will not only improve services but also increase the authority’s revenues,” a statement from the GACA said.
The new concept of airport cities offers a lot of investment opportunities for Saudi and foreign businessmen, it added.
A GACA technical team had visited airports in Amsterdam, Hong Kong, Los Angeles, Dubai Airport and South Korea to prepare development plans for the Saudi airports. The GACA found that some foreign airports had increased their revenue by 50 percent by developing them into airport cities.
The GACA also recently announced its plan to invite tenders from private companies to develop and operate VIP passenger lounges at domestic and international airports in the Kingdom.
“GACA’s board of directors approved the plan to realize its strategic goal of developing Saudi airports on a commercial basis,” the statement said. The project’s viability has been supported by a study conducted by the authority. The GACA has set Feb. 14 as the last date for receiving applications from tendering companies.
