JEDDAH, 25 April 2006 — National Air Services (NAS), the largest and fastest growing provider of VVIP and executive air transport services in the Middle East, has announced an increase in its capital to more than SR1 billion. This increase comes as a result of a sale of new shares, representing 30 percent of the company, to a group of Saudi investors through “Abraaj Nas Investment Co.” (ANIS) hence enlarging the shareholder base of the company.
According to its latest financial valuation, the company’s market value was estimated at a minimum of SR1.5 billion. Considering the company’s paid up capital of SR383 million, this represents almost a quadrupling of its value since its establishment and an annual return-on-investment that is said to have reached record levels in recent years.
Market experts are hailing this announcement as a credit for NAS, which has been able through a history of successful operations during the past seven years to secure a lead position in the Middle East aviation market. Market analysts also foresee NAS’ move as the first step toward transforming the company’s legal status and taking it public.
This NAS announcement on Sunday also marks an important chapter in the history of the aviation sector in Saudi Arabia and specifically in the air travel industry. The success of NAS demonstrates the capacity of the Saudi air travel market to accommodate new local investments. This success also proves that the Saudi private sector is capable of playing a more dynamic role in the development of the Saudi commercial and private aviation markets through diversified investments. Such investments further enhance the national economy and open fresh horizons via new and innovative services to cater for the various market segments including locals, residents and visitors alike, starting from the Saudi market — which is considered the region’s biggest — before expanding to include the Middle East and Gulf markets.
NAS President and CEO Mohammed Al-Zeer said that “The capital increase will be entirely invested in financing a number of strategic services which the company plans to unveil during the next few months and will further support the company’s technical capabilities to meet the rapid expansion in its operations.”
Al-Zeer added the decision to increase the company’s capital and the enlargement of its shareholders base was a logical outcome of a series of market studies and research conducted on the Middle East aviation market, which since 2001 is said to have been witnessing a phase of revival coupled with unprecedented growth rates in the demand on commercial and private aviation services. “These positive developments lead many private companies to show interest and venture into aviation projects in an attempt to meet the rising demands on all aviation services and lead to the development and enhancement of service levels that are offered to the sector’s clients.”
In 2005, NAS launched Al-Khayala, the region’s first VIP air service targeting the business travel market in Saudi Arabia and regional leisure destinations. In 2006, the company plans to launch Saudi Arabia’s first low cost carrier to serve the Kingdom’s domestic travel market. NAS operates and manages the largest and fastest growing fleet of private aircraft in the Middle East region and one of the twenty largest worldwide. The company currently has a total of 28 aircraft of different types in its stable, including the largest fleet in the world of privately configured Airbus aircraft, along with Boeing, Gulfstream, Dassault and Raytheon models, and even Twin Otter aircraft employed in its medical evacuation service.
