A new airline policy unveiled by Saudi Arabia on Sunday aims to improve the industry’s performance and draw $100 billion in investments by 2030.
The General Board of Civil Aviation said that as of October 30, the policy would establish regulations pertaining to ground services, airports, air cargo, and air transport services.
The policy allows airport operators to establish wages in accordance with their plans, favors the divestment of airports, and streamlines the processes for new investors to enter the aviation business.
By boosting revenue from non-navigational services, the authority will also allow airport operators to easily diversify their sources of income.
By doing this, airports will be encouraged to broaden their offerings and business ventures, strengthening their position as global transportation hubs.
In addition, the economic policies and regulations of the authority will support the development of the Kingdom’s investment climate, increase the transportation and logistics sector’s share of the local GDP to 10%, and generate both direct and indirect employment possibilities in the aviation industry.
In addition, by 2030, the measure is expected to draw investment of as much as $100 billion from the private and public sectors. Its objective is to provide a competitive environment that provides equal chances for both present and prospective investors in the sector.
The action furthers Saudi Arabia’s economic diversification and advances the National Aviation Sector’s strategic plan, which aims to establish the industry as the premier one in the Middle East.
The purpose of the airport rules is to lay the groundwork for the authority’s regulatory role by promoting privatization, monitoring airport operators’ operations, and easing the entrance of fresh capital into the aviation industry in the area.
In addition to defining standards and guidelines for choosing of ground service providers, the economic legislation for ground transportation and air cargo services mandate that anybody hoping to offer services at the Kingdom’s airports adhere to the concept of “market access freedom.”