All Saudi airports to be privatized this year

A file photo of King Khaled International Airport in Riyadh.
Updated 09 August 2017
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All Saudi airports to be privatized this year

JEDDAH: All Saudi airports will be privatized this year, the head of the General Authority for Civil Aviation (GACA), Abdul Hakim Al-Tamimi, told Aleqtesadiah daily.
GACA’s privatization strategy aims to transfer all Saudi airports to companies wholly owned by the Saudi Civil Aviation Holding Co., then transfer ownership of the holding company to the Public Investment Fund (PIF).
The aim “is to improve the level of services provided to passengers, and to convert the targeted sectors into a profitable center to cover costs and to be a source of income for the owner,” Al-Tamimi said, adding that the privatization will be implemented via three methods.
The first relates to the transfer of an airport to a company, similar to what is happening at King Khaled International Airport in Riyadh, where a minority holding is sold. Then an airport board of directors is formed that has powers in the management of the company.
The second method is operation and maintenance, similar to what happened at the new King Abdul Aziz International Airport in Jeddah.
GACA will bear the capital cost of establishing the project, and will share the income with investors.
The third method is the BTO (build, operate and transfer) system, such as what was done with Prince Mohammed bin Abdul Aziz Airport in Madinah, and with Taif, Hail, Qassim and Yanbu airports, which signed contracts with investors.
The employees will be transferred to the investor’s responsibility, who bears the capital cost of the project and shares the income with the authority.
The head of GACA said the privatization will be completed in stages and in the form of groups.
“GACA will be the regulator and controller of the aviation sector in the next phase, in the event of concluding the privatization process,” he said.
Saudi Arabia has hired Goldman Sachs to manage the sale of a stake in King Khalid International Airport, the first major privatization of an airport in the Kingdom, three sources familiar with the matter told Reuters.
The sources said the Saudi Civil Aviation Holding Co. plans to sell a minority stake in the airport, without disclosing a timeframe for th sale.
The size and estimated value of the stake were not immediately known, but the airport is Saudi Arabia’s second-largest after Jeddah’s King Abdul Aziz International Airport.
Faisal Al-Suqair, chairman of the Saudi Civil Aviation Holding Co., said the conversion of airports to companies is the first step in the privatization of airports.
“These airports, after being transferred to companies, will be re-arranged to operate on a commercial basis and become more efficient practically and financially before they are privatized,” he said.


Clean sweep: Marine waste targeted in Red Sea tourism program

The program for eliminating marine debris will play an important material and moral role with the support of the residents of areas surrounding the seafront. (SPA)
Updated 22 September 2019

Clean sweep: Marine waste targeted in Red Sea tourism program

  • Debris major cause of death for marine life
  • Disintegration of plastic waste threaten human food resources

JEDDAH: A beach cleanup program targeting marine waste has been launched by the Red Sea Development Co. (TRSDC), the Saudi Press Agency reported.
The firm, which is behind the development of a luxury seafront tourism destination in Saudi Arabia, is already developing a range of environment-friendly policies such as zero-waste-to-landfill, zero-discharge-to-the-sea, zero-single-use plastics, and achieving 100 percent carbon neutrality. On Saturday it launched the Marine Debris Beach Clean Up Program as part of the Red Sea Project. “Eliminating marine debris is receiving increasing attention from the media that it has become a global cause, urging us to participate in protecting our virgin environment for which our seafront is known,” said TRSDC CEO John Pagano.
“The program for eliminating marine debris will play an important material and moral role with the support of the residents of areas surrounding the seafront. It will also shed light on the importance of reducing the use of nonrecyclable plastics, in addition to encouraging the disposing of these substances in a safe and sustainable manner.”
The TRSDC will continue to explore ways for recycled materials to be a source of employment opportunities for the area’s residents, he added. 
TRSDC is an official partner of the United Nations’ initiative to achieve the Sustainable Development Goals (SDGs) and the cleanup program will initially support two SDGs: Life Below Water and Life on Land. It will expand to support other SDGs, including Responsible Consumption and Production, Sustainable Cities and Communities, Decent Work and the Growth of the Economy, Ending Poverty, and Quality Education.

HIGHLIGHTS

• TRSDC is an official partner of the United Nations’ initiative to achieve the Sustainable Development Goals (SDGs) and the cleanup program will initially support two SDGs: Life Below Water and Life on Land.

• It will expand to support other SDGs, including Responsible Consumption and Production, Sustainable Cities and Communities, Decent Work and the Growth of the Economy, Ending Poverty, and Quality Education.

• Institutions or individuals wishing to take part in the beach cleanup program can find more details here: www.act4sdgs.org/partner/TheRedSeaProject

Dr. Rusty Brainard, chief environment officer at TRSDC, said: “Marine debris causes significant damage to the environment and is a major cause of death for many marine organism species, which may ingest these substances. Moreover, the disintegration of plastic waste into small pieces that penetrate into the food web base may also threaten human food resources. Our program for eliminating marine litter is a long-term project that includes ongoing monitoring of environmental health, as well as periodic intervention to clean up any waste in the Red Sea Project.”
TRSDC has teamed up with leading academic institutions in the Kingdom, such as King Abdullah University of Science and Technology (KAUST) and the University of Tabuk, on a number of educational initiatives, added Brainard.
The partnership between TRSDC and KAUST has led to an international competition — “Brains for Brine” — that encourages academics, scientists, engineers and the water industry to find solutions for managing the disposal of brine, which is a waste product of water desalination, in a sustainable and commercially viable way.
KAUST has also helped TRSDC with marine spatial planning for the Red Sea Project.
As part of the planning process, major environmental studies were carried out to ensure that the area’s sensitive ecology was protected both during and after completion of the development.
The final master plan, which preserves around 75 percent of the destination’s islands for conservation and designates nine islands as sites of significant ecological value, required several redesigns to avoid potential disruption to endangered species native to the area.
Institutions or individuals wishing to take part in the beach clean-up program can find more details here: www.act4sdgs.org/partner/TheRedSeaProject