Saudi Arabia Completes Institutional Transformation of its Airports

Saudi Minister of Transport and Logistics Services Saleh al-Jasser during the ceremony (Asharq Al-Awsat)
Saudi Minister of Transport and Logistics Services Saleh al-Jasser during the ceremony (Asharq Al-Awsat)
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Saudi Arabia Completes Institutional Transformation of its Airports

Saudi Minister of Transport and Logistics Services Saleh al-Jasser during the ceremony (Asharq Al-Awsat)
Saudi Minister of Transport and Logistics Services Saleh al-Jasser during the ceremony (Asharq Al-Awsat)

Saudi Arabia has completed the institutional transformation of its airports towards improving the passenger experience aiming to become among the most competitive airports in the world.

The General Authority of Civil Aviation (GACA) and Matarat Holding Company announced the completion of the institutional transformation of 25 of the Kingdom's airports and launched "Jeddah Airports Company" and the 2nd Assembly Company.

During the ceremony, the Minister of Transport and Logistics Services, Saleh al-Jasser, highlighted the importance of the institutional transformation of the Kingdom's airports as an essential step in supporting the plans of the Ministry and the civil aviation sector to advance the Kingdom's airports and enhance their role in supporting the national economy.

Jasser praised the national strategy for transport and logistics, announced by Crown Prince Mohammed bin Salman, saying it is a "qualitative jump and a major leap" in the sector.

He noted that this would make the Kingdom a global logistics center, linking the three continents and enabling it to acquire the 5th rank in the world in airports transit traffic and reach the 10th rank in the world in the index of logistics services.

Jasser lauded the efforts of officials and workers to transfer the 25 airports, which was completed in one year, stressing that the government provides all support to the transport, logistics, and aviation sectors, to achieve and meet the large targets to be reached in the future.

For his part, the Advisor to GACA President for Governance and Executive Projects, Sulaiman al-Bassam, said that the launch of the two companies comes within the framework of the Authority's outstanding efforts to improve airport services in the Kingdom, through the "Matarat Holding" and affiliated companies, to manage and operate Saudi airports in a modern and developed manner.

"Airports are a cornerstone of the air transport industry and play a vital role in the field of development."

Bassam stated that the Saudi government believes the civil aviation sector is essential and issued the royal decree that separated the legislative from the operational and administrative aspects.

He added that the decree enhanced the efforts of strategic plans to achieve the goals of Vision 2030 for GACA to implement serious steps that accomplish its role as a legislator and regulator of the air transport industry in the Kingdom.

The advisor noted that Matarat provides the necessary support to enable companies to do their role within an appropriate environment to receive the most significant number of carriers and air traffic in Saudi airports and airspace.

Bassam stated that the "important step" aims to increase the rate of competitiveness and productivity between airports, improve financial returns, and raise the operational efficiency of Saudi airports.

"This in addition to raising the capacity of the Kingdom's airports to more than 330 million passengers per year, and to increase the capacity of air cargo to 4.5 million tons per annum, and achieve the 5th rank - globally - in air connectivity for passengers across 250 global destinations."

Speaking at the event, the CEO of Matarat, Mohammed al-Mowkley, stated that the establishment of Jeddah Airports comes as part of the assets transfer and institutional transformation program for the Kingdoms' airports.

It will assume responsibility for operating and managing King Abdulaziz International Airport in Jeddah, equipping it with the latest specifications and the highest international standards, and enhancing its role to be at the forefront of the best and leading regional and international airports.

Mowkley indicated that Jeddah Airports would develop King Abdulaziz International Airport to become a diversified economic gateway and operate it with state-of-the-art equipment and advanced services, with a new and innovative modern concept.

He explained that this would enhance passengers' experience to be an icon interface for visitors to the Kingdom, and a significant global hub, through its connection to the international airports' network.

Airports Cluster 2 Company will manage and operate 22 of the Kingdom's airports to provide the best and most acceptable services to passengers, develop these airports and increase their role in supporting the national economy by providing the best practices adopted by international airports, enhancing their competitiveness and improving the quality of services.

It will enrich passengers' experience, improve the performance of airports, and bring them to the best international levels.



Saudi Arabia Unveils $2.6 Bln in Real Estate Supply Chain Investment Opportunities

A panel discussion on the sidelines of the Real Estate Supply Chain Forum in Riyadh (Asharq Al-Awsat)
A panel discussion on the sidelines of the Real Estate Supply Chain Forum in Riyadh (Asharq Al-Awsat)
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Saudi Arabia Unveils $2.6 Bln in Real Estate Supply Chain Investment Opportunities

A panel discussion on the sidelines of the Real Estate Supply Chain Forum in Riyadh (Asharq Al-Awsat)
A panel discussion on the sidelines of the Real Estate Supply Chain Forum in Riyadh (Asharq Al-Awsat)

The Saudi government is expanding its targets for “Supply Pro,” a digital platform that connects contractors and building materials manufacturers under the National Housing Company.

The plan includes a 30% increase in the number of registered local and international suppliers, a 7% localization of building materials used in housing units, and the creation of new investment opportunities valued at over 10 billion riyals ($2.6 billion) in manufacturing, supply, and logistics services.

These initiatives are expected to generate more than 5,000 jobs.

This was revealed by Mohammad Al-Bati, CEO of the National Housing Company, during his speech at the “Real Estate Supply Chain Forum” in Riyadh on Tuesday, which was sponsored by Minister of Municipal and Rural Affairs and Housing Majed Al-Hogail.

The event, attended by a group of consultants, contractors, and manufacturers, aimed to explore collaboration opportunities, learn about the latest technologies in the building materials industry, and facilitate knowledge exchange between local and international companies to strengthen supply chain networks.

Al-Bati also disclosed several agreements recently signed by the National Housing Company to support the real estate supply chain, with a total value exceeding 21 billion riyals ($5.6 billion).

These agreements have notably boosted local content, increasing from 54% to 63% by the end of 2024, while generating thousands of direct and indirect job opportunities in this vital sector.