associate sponsors


Saudi aviation regulator in talks with govt to set up airport free-zones | Reuters

JEDDAH Saudi Arabia's aviation regulator is in talks with government agencies to set up free zones at Jeddah and Riyadh airports as part of a long-term plan to diversify the kingdom's economy away from oil, its chairman told Reuters on Wednesday.

"This is not a simple development of a free zone; there's a lot of agencies involved. The starting point would be one in Jeddah Airport and one in Riyadh Airport," Faisal al-Sugair, vice-chairman of the General Authority of Civil Aviation (GACA), said in an interview.

The free zones would aim to attract foreign businesses through relaxed licences, visa and taxation rules, available to various industries and services. They would be large enough to include manufacturing facilities, Sughair said.

The authority, which oversees all the country's 27 airports, announced plans in November to privatise Saudi Arabia's international and domestic airports by 2020 as the kingdom seeks foreign investment to support state finances.

Sugair said the Council of Economic and Development Affairs (CEDA) and Public Investment Fund (PIF) were working on the free zones as part of the National Transformation Plan, a package of reforms meant to boost the non-oil private sector.

"It's led by CEDA and the PIF, working together with the Ministry of Commerce and obviously GACA to develop the right concept for these free zones, but that's going to take some time," he said.

Saudi Arabia, with finances hit by low oil prices, announced plans last year to shrink a record state budget deficit with spending cuts, reforms to energy subsidies and a drive to raise revenues from taxes and privatisation.

Sugair said he expected bids for Jeddah's King Abdulaziz International Airport, Saudi's busiest, by the end of April.

Work on the new Terminal 5 at Riyadh's King Khaled International Airport would be completed in May, he said. T5 will be run as a concession by Dublin Airport Authority before the rest of the airport is itself privatised.

Sugair said he expects approval from CEDA's privatisation committee to come in April, after which point fundraising for upgrades at the kingdom's other airports would come exclusively from non-governmental sources.

"Once we corporatise, no more government funding. That's fundamental. If we cannot get that, we're wasting our time," he said.

(Writing by Nadia Saleem and Katie Paul, editing by David Evans)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date: Mar 03, 2016 03:16 AM

Also Watch

Watch: The true stories from Dharavi that inspired Rajinikanth's Kaala
  • Thursday, March 8, 2018 Watch: Cyrus Khan talks about Parkour, jumping across walls and why he hates sitting
  • Thursday, May 31, 2018 Unwind: India's basketball sensation Amjyot Singh has his eyes set on becoming an NBA regular
  • Monday, May 28, 2018 First Day First Showsha — Review of Solo: A Star Wars Story in 10 questions
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See

{if $hideJSforEU != 'yes'} {/if}