Global oil prices have fallen sharply over the past year, leading to significant revenue shortfalls and has put Saudi Arabia under enormous economic stress.
The Kingdom’s aviation sector is set to play a significant role in the government’s economic diversification efforts and the Saudi government has already earmarked $10.65 billion (SAR 39.4 billion) to build and upgrade more than 20 airports to help accommodate its fast growing aviation industry. With the successful launch of the Prince Mohammed bin Abdulaziz International Airport in Madinah, the first airport in Saudi Arabia to be constructed and operated entirely by the private sector following a Build-Transfer-Operate (BTO) Agreement, the regulators have announced the plans to privatize airports as a means to support Kingdom’s finances. This will allow foreign companies to invest in the Saudi Arabian airports without the need for local partners. The Saudi Arabian Airports see an annual increase of more than 10% of passengers and 5% of aircraft operations. 70% of goods bound to the Middle-East are destined for Saudi Arabia and the government is focused to increase its cargo handling capacity to circumvent the need for shipments to transship through neighbouring GCC countries.
Today, the country also faces a mammoth task to create enough jobs to cope with a booming population amid the oil price rout. The growth in Aviation sector will spark over 40,000 jobs over the next 4 years and will contribute towards Saudization. The Kingdom of Saudi Arabia is looking at sophisticating and streamlining the aviation sector through major infrastructure development projects, privatization projects and market liberalization. Today the Kingdom is focused at modernizing the already existing airports as well as developing new airports of the future with technology that can handle the air traffic, cargo and the passenger flow with ease.
Given the scenario, Nispana & SEMARK proudly announces the launch of the inaugural “Airport Modernization Summit 2016” scheduled on the 2 – 3 October 2016, Riyadh, Kingdom of Saudi Arabia. The 2 Day Summit will provide the main stake holders with an ideal platform to come together and listen to real-time case study presentations by global leaders, network with peers, exchange ideas and source some of the latest technology that can be used to modernize the existing airports and develop new airports of the future.