Saudi Arabia is moving ahead with a major privatization initiative in its airport sector, with the private sector expected to play a central role, according to Abdulaziz Al-Duailej, President of the General Authority of Civil Aviation (GACA).
Speaking at a dialogue session during the Supply Chain and Logistics Conference 2025 in Riyadh on Tuesday, Al-Duailej said the aviation sector was among the Kingdom’s first to adopt privatization and public-private partnerships, delivering successful models at the regional level.
As part of the new phase, Abha, Taif, Qassim, and Hail airports will be offered to private operators. Al-Duailej said the process begins with Abha International Airport, where procedures started more than a year ago, including the invitation of bids. The project has drawn strong interest, with more than 100 local and international companies applying to participate in the airport’s development and operation.
The Abha project aims to raise annual passenger capacity from 1.5 million to 13 million in three phases. The winning consortium is expected to be announced within approximately three months. Al-Duailej noted that the level of interest from operators, investors, financiers, and contractors reflects growing confidence in Saudi Arabia’s airport privatization opportunities. Similar projects for Taif, Qassim, and Hail airports are expected to follow.
Al-Duailej also highlighted Prince Mohammed bin Abdulaziz International Airport in Madinah as the Middle East’s first full public-private partnership airport project. Opened in 2016 with an initial capacity of less than 3 million passengers per year, the airport was later handed over to the private sector for design, construction, financing, and operations, helping increase capacity to 8.5 million passengers annually.
He added that a new agreement signed about a year ago will expand Madinah airport’s capacity further to 18 million passengers and extend the concession by an additional 30 years with the same investor. According to Al-Duailej, the partnership proved its resilience during the COVID-19 pandemic, with continued support from government entities and the state’s commitment to lenders and financiers.