Sector briefing Airport Opportunities in Saudi Arabia Why Saudi Arabia? Saudi Arabia is approximately the same size as Western Europe, covering an area of 2.24 million square miles. With a population of 28 million, Saudi Arabia is not dense in relation to the size of the country. The population is expected to reach 39 million in 2020 and 47 million in 2030. The size of the country, coupled with the distribution of the population, means that air travel is vital to the economy. There are four international and 26 regional country. A significant step has been the /domestic airports in Saudi Arabia with a total management of the three current throughput in 2008 of 39 million passengers, international although this is forecast to rise to 45m by airports which has been placed in the 2017. GACA have estimated that the hands of non-Saudi organisations for the Government will invest at least US$ 5.3 first time. billion in airports development and expansion plans over the next 20 years. Find general information on the Saudi Arabian market conditions on UKTI?s website. The The civil aviation marketplace in the Kingdom Doing Business Guide for Saudi Arabia gives an continues to open up and is assuming a overview of Saudi Arabia?s economy, business more modern and western approach to culture, potential opportunities and an business. This is evidenced in initiatives such introduction to other relevant issues. as the corporatisation of the General Authority of Civil Aviation (GACA), the number of privatisation initiatives underway and many airport development projects across the UK Trade & Investment Sector briefing: Airport opportunities in Saudi Arabia contract has not yet been awarded for the Opportunities construction. A new date has been set for 2013 but this seems optimistic. The following section provides information on some of the Kingdom?s airports, where Two major packages were tendered in January development plans are known. 2010. One for the airport terminal itself and one for the infrastructure around it. The International Airports deadline for submitting bids was 29 March 2010 and a handful of companies were invited The King Abdulaziz International Airport to tender. It is expected that Dar Al project (KAIA) in Jeddah Handarsah (the Project Managers of KAIA development plan) will take 3-4 weeks to sift Opened in 1981, KAIA is the busiest airport in through the bids before making Saudi Arabia. It is the closest international recommendations to GACA. airport to the holiest cities of Islam, Makkah and Medina, and is recognised as the gateway The King Fahd International Airport in to Saudi Arabia. Dammam It has three runways (shared between civil and The largest airport in Saudi Arabia (and the military use), two passenger terminals, a world in terms of geographical size) is currently dedicated Hajj terminal, a cargo terminal and a reviewing its Masterplan. Royal terminal. It hosts over 30 airlines, carrying in excess of 15 million passengers per King Khalid International Airport in year. Riyadh KAIA is undergoing significant redevelopment Plans have been approved for the expansion under a NACO master plan that seeks to and modernisation of all three passenger increase the capacity in phases to 30 million, terminals, in addition to the renovation of 60 million and 80 million passengers over the terminal four. The first phase will increase next 20 years. This is by far the biggest annual passenger capacity to 25 million. airport project in KSA. Terminal four will be expanded with a new concourse and domestic traffic will move from This ambitious project is in 2 phases. The first terminal three to four. Budget approval is now phase, called the ?Rush programme? is aimed at being sought (as of April 2010). Tenders will keeping the airport operational and preparing follow once budget been approved. They are for the second phase of expansion. Fraport also looking to increase the cargo capacity to runs and manages the operation side of KAIA more than 1.2 million tons and increase other projects and commenced work in summer supporting services by 50%. 2008. Huge differences have already been seen as the project seeks to ease passenger The Prince Mohammad Bin Abdulaziz congestion and improve the support Airport in Madinah: infrastructure. A Royal Decree was received in 2009 to turn A second part of the ?Rush programme? is the this airport in Madinah into an international airside project, which includes expanding and airport. A budget of SR 9 billion has been set upgrading the runways, lighting etc. This has aside for this. GACA has appointed the been awarded to Almabani. International Finance Corporation (IFC) as lead advisor to assist in the structuring and The main expansion project itself will include implementation of the Project. GACA are the development of a series of interconnected looking for private investors to develop, terminal buildings, new commercial, logistics rehabilitate, expand, finance and operate the and cargo areas, new transport infrastructure airport under a long term Public Private and support facilities. Partnership. Interested parties with experience in the construction and operation of airports It was announced in the newspapers in 2009 were invited to submit prequalification that phase 1 would be completed by 2012, applications by April 2010. enabling a capacity of 30 million passengers There are plans to develop airport cities at the and the handling of the Airbus A380. However, three main international airports that will this seems hugely optimistic, especially as the UK Trade & Investment Sector briefing: Airport opportunities in Saudi Arabia provide additional services such as hotels, ?international? airport. However this is not due conference halls, malls, commercial offices and to be completed until 2025 and will primarily be a cargo airport, linking in with the service agencies. development of the Hail economic city, which will focus on logistics. Domestic Airports Tabuk: Bin Laden has been awarded the There are currently 22 domestic airports with a contract for the upgrade of the airport. The possible five new airports to be built. Only one refurbishment is due to be complete by the end new airport is in the design stage at the of 2010 at a cost of SR 220 million. moment as further reviews are currently taking place within GACA on the numbers of new Taif: Currently the airport is shared with the airports to be built. The following are the military but a new site has been identified to major domestic airport projects: construct a new civilian only airport. This will provide a further gateway for Hajj and Umrah Abha Airport: Abha has a single runway pilgrims. Zuhair Fayez Partnerships have been operation with plans to expand and modernise. awarded the contract (April 2010) to produce NACO have completed the Masterplan for the the Masterplan and detailed design. These expansion which envisages 4 million designs should be completed by October 2011. passengers per annum. Tenders for the detailed design are now out, with the deadline Al Qunfudah: This is to be a new for submitting bids being the end of April 2010. ?economical? airport. GACA is producing the It is envisaged that detailed design will be detailed design themselves and tenders for the completed next year and construction will start construction should go out towards the end of in April 2012. 2010. Al-Ula Airport at Madain Saleh: This new In addition to the above major refurbishment airport (Prince Abdul Majeed bin Abdul Aziz projects, a 2009 symposium also identified the Airport) has a projected cost of SR 158 million following as airport investment opportunities: and is expected to serve 100,000 passengers, ? Commercial retailers. primarily to provide access to this historic site. ? Duty free shops. Almabani have won the contract and ? Ground handling services. construction should be completed in 2010. ? Fuel. Al-Qurayyat: An ai ? Catering. rport in the strategically important town on the Saudi Jordanian border. ? Air cargo. Saudconsult are handling the detailed design of ? Recreational facilities at the this upgrade and as of April 2010, it is 95% international airports. complete. Tenders for construction of the new ? Further opportunities exist in navigation design will be issued shortly after completion of air services and training. detailed design, with the aim of project completion by the end of 2012. If you have any questions on the opportunities above, contact the UKTI contacts named in this Arar Airport: Talal Adham Consultants are report. Business opportunities aimed handling the detailed design and have specifically at UK companies are added daily to completed 50% of the project (as of April UKTI?s website. These leads are sourced by our 2010). Detailed design should be completed staff overseas in British Embassies, High by the end of 2010 and tenders will then be Commissions and Consulates, across all sectors issued for the construction. and in over 100 markets. Najran: Almabani have the SR 300 million You can be alerted to business opportunities on contract for building the new terminal (1.4 a regular basis by registering on the UKTI million passengers per annum) and support website. More on UKTI?s business opportunities buildings. This project is expected to be service completed in March 2011. Hail Airport: The refurbishment and redevelopment for Hail airport is in the final stages of design. Al Mal Investment Company recently signed an MOU with GACA to build Hail UK Trade & Investment Sector briefing: Airport opportunities in Saudi Arabia Major events and activities UKTI contacts Greg Gibson To be advised. Head of Trade & Investment British Consulate-General, Jeddah Find full details of all events in this Tel: 00966 (0) 2 622 5550 ext. 2212 country and sector on the UKTI website. Email: greg.gibson@fco.gov.uk New export events are added daily to the site www.ukti.gov.uk and you can register to be alerted to them on a daily, weekly or monthly basis Vaqar Alvi Trade and Investment Assistant UKTI?s Tradeshow Access Programme (TAP) British Consulate-General, Jeddah provides grant support for eligible Small & Tel: 00966 (0) 2 622 5550 ext. 2217 Medium Sized Enterprises (SME's) to attend Email: vaqar.alvi@fco.gov.uk trade shows overseas. Find out more about www.ukti.gov.uk UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Airport opportunities in Saudi Arabia Next steps - How UKTI can help British companies wishing to develop their business in the Saudi Arabian market are advised to undertake as much market research and planning as possible in the UK. UKTI?s team in Saudi Arabia, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in global markets. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the Chinese market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Saudi Arabian market This work is available via our Overseas Market Introduction Service (OMIS) a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Airport opportunities in Saudi Arabia