“This will be the first batch of sukuk, which will be followed by other issues,” the GACA said in a statement, adding that the sukuk would be fully guaranteed by the government. The expansion would increase the airport’s annual capacity to 30 million.
“By issuing these sukuk bonds, the government intends to open new channels of investment and saving and provide economically viable projects to the private sector,” the statement said.
The new sukuk issues would have the full backing of the Finance Ministry and Saudi Arabian Monetary Agency, GACA said, adding that they would introduce the issues to financial institutions. GACA sukuk have been enlisted among bonds that are acceptable in repurchase agreements.
KAIA is considered the main gateway of pilgrims coming for Haj and Umrah. The airport witnessed the most successful Haj operation in 2011 when it handled more than 2.5 million domestic and foreign pilgrims on board 10,650 flights.
