Saudi Arabia Enjoys Fastest Growing Airport Technology Sector in Middle East

SITA’s pavilion at the annual meeting of the General Assembly of the Airports Council International in Riyadh. (Turky Al-Agili)
SITA’s pavilion at the annual meeting of the General Assembly of the Airports Council International in Riyadh. (Turky Al-Agili)
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Saudi Arabia Enjoys Fastest Growing Airport Technology Sector in Middle East

SITA’s pavilion at the annual meeting of the General Assembly of the Airports Council International in Riyadh. (Turky Al-Agili)
SITA’s pavilion at the annual meeting of the General Assembly of the Airports Council International in Riyadh. (Turky Al-Agili)

A recent study, “Investment trends in travel technology” by Amadeus, showed that airports are witnessing a rapid digital transformation, as the pace of travel industry transformation is set to accelerate with an average 14% increase in technology investment planned for 2024.

In recent years, passengers have seen tremendous changes in travel services, beginning with quick online purchase of tickets to electronic boarding passes and other areas.

Digital transformation in Saudi Arabia is one of the most important pillars of Vision 2030, as the Kingdom is considered the fastest growing in the field of airport technology in the Middle East region, according to Jihad Boueri, the Regional Vice President for Airport Affairs for the Middle East, India and Africa region at SITA.

Speaking to Asharq Al-Awsat on the sidelines of the first annual meeting in the Middle East of the General Assembly of the Airports Council International (ACI) in Riyadh, Boueiri pointed to a global technical revolution in the airport sector, but added that its implementation in the Kingdom was faster and stronger as a result of a solid budget and the development of new airports.

Asked about the challenges facing the sector, he said the need to train human resources and discover and develop young talents could delay the process of adopting modern technologies.

Sustainability also represents another challenge as the aviation sector is responsible for 4 percent of carbon emissions, he remarked, while highlighting projects such as reducing engine operation time, saving fuel to reduce thermal emissions, and choosing environmentally friendly devices at airports

Commenting on the future outlook for the travel industry, he stressed that airport technology was leaning towards allowing travelers to pass through free zones based on the biological fingerprint that collects all individuals’ information in a data cloud.

Travelers will also be able to check in luggage from home through airline companies, he said, noting that the Kingdom is taking great steps towards applying these advanced technologies.

In April, Saudia Airlines launched a trial version of the “Virtual Assistant with Artificial Intelligence Technology” platform, in cooperation with Accenture, the global management consulting and professional services company. The platform enables individuals to plan travel and complete all procedures with the aim of redefining digital travel standards.



Pakistan Ends Power Purchase Deals to Cut Costs

A power transmission tower is seen in Karachi, Pakistan, January 24, 2023. REUTERS/Akhtar Soomro/File Photo
A power transmission tower is seen in Karachi, Pakistan, January 24, 2023. REUTERS/Akhtar Soomro/File Photo
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Pakistan Ends Power Purchase Deals to Cut Costs

A power transmission tower is seen in Karachi, Pakistan, January 24, 2023. REUTERS/Akhtar Soomro/File Photo
A power transmission tower is seen in Karachi, Pakistan, January 24, 2023. REUTERS/Akhtar Soomro/File Photo

Pakistan's government has reached an agreement with utilities to end power purchase contracts, including one with Pakistan's largest private utility that should have been in place until 2027, as part of efforts to lower costs, it said on Thursday.

The news confirms comment from Power Minister Awais Leghari to Reuters last month that the government was renegotiating deals with independent power producers to lower electricity tariffs as households and businesses struggle to manage soaring energy costs.

Earlier on Thursday Prime Minister Shehbaz Sharif said Pakistan has agreed with five independent power producers to revisit purchase contracts. He said that would save the country 60 billion rupees ($216.10 million) a year.

The need to revisit the deals was an issue in talks for a critical staff-level pact in July with the International Monetary Fund (IMF) for a $7-billion bailout.

Prior to the prime minister's announcement, Pakistan's biggest private utility, Hub Power Company Ltd, said the company agreed to prematurely end a contract with the government to buy power from a southwestern generation project.

In a note to the Pakistan Stock Exchange, it said the government had agreed to meet its commitments up to October 1, instead of an initial date of March 2027, in an action taken “in the greater national interest.”

A decade ago, Pakistan approved dozens of private projects by independent power producers (IPPs), financed mostly by foreign lenders, to tackle chronic shortages.

But the deals, featuring incentives, such as high guaranteed returns and commitments to pay even for unused power, resulted in excess capacity after a sustained economic crisis reduced consumption.

Short of funds, the government has built those fixed costs and capacity payments into consumer bills, sparking protests by domestic users and industry bodies.

Pakistan has begun talks on re-profiling power sector debt owed to China and structural reforms, but progress has been slow. It has also said it will stop power sector subsidies.