In a groundbreaking announcement, Saudi Arabia revealed its comprehensive economic policy aimed at revolutionizing the Kingdom’s aviation sector, with an ambitious goal of attracting $100 billion in investments by 2030.
The General Authority of Civil Aviation (GACA) disclosed that these substantial investments, sourced from both the public and private sectors, will be utilized to elevate the standard of air traffic services within Saudi Arabia.
The strategic move entails the adoption of three key economic regulations by the GACA, covering airports, ground handling services, and air cargo and air transport services, set to be enforced from October 30. The ultimate objective of this economic policy is to enhance the operational efficiency of the Kingdom’s airports and elevate the performance of national air carriers, as part of the authority’s broader initiative to position Saudi Arabia as a global transportation and cargo services hub, as outlined in a recent GACA statement.
The policy framework actively promotes airport privatization, streamlines procedures for new investors entering the aviation sector in the Kingdom, and empowers airport operators to establish remuneration structures in alignment with their business plans. Additionally, the GACA has introduced economic regulations for ground handling and air cargo services, emphasizing the principle of ‘market entry freedom’ for entities seeking to provide these services in Saudi Arabia.
Moreover, the regulations for air transport services aim to stimulate air traffic growth by simplifying the requirements for issuing economic licenses to air carriers and eliminating economic constraints for non-commercial flights.
The introduced infrastructure is designed to foster healthy competition and attract foreign investments, fostering growth and fostering innovation within the aviation sector. These strategic measures are in line with the National Aviation Strategy, aiming to position the sector as the leading one in the Middle East, while contributing significantly to diversifying Saudi Arabia’s revenue streams.
The economic policy and the series of regulations put forth by the GACA are anticipated to contribute to the realization of the National Aviation Strategy’s objectives, thereby catalyzing an environment conducive to investment, creating job opportunities, and facilitating a robust regulatory framework to support the aviation sector’s growth. The GACA has also reinforced its regulatory role by establishing economic regulations for airports, empowering operators to diversify their revenue streams, and encouraging the adoption of international standards in airport operations and services.
These significant economic regulations were formulated following extensive consultations with various stakeholders in the aviation sector, reflecting a comprehensive approach to accommodate industry feedback and ensure smooth implementation. The GACA has announced a phased implementation plan spanning the next 18 months to ensure the seamless integration and effective application of these provisions within the aviation sector.
