Saudi Arabia said to consider selling stake in Riyadh airport

Saudi Arabia is mulling the sale of a minority stake in Riyadh’s King Khalid International Airport, as it looks to boost revenues through its privatization program, Bloomberg reported, citing sources with knowledge of the matter.

Saudi Civil Aviation Holding Co. has asked local and foreign investment banks to pitch for the role of adviser on the sale, the sources said.

The entity could appoint an adviser before the end of the month, they added, noting that the Saudi government wants to complete the sale by early next year.

The size of the stake and how much could be potentially raised is yet to be decided, the agency reported.

It has also not been confirmed whether the sale will actually go ahead, as the process is still in early stages, one person said.

Potential investors could include private-equity firms, infrastructure funds and international airport operators, said two of the sources. 

Saudi Arabia plans to privatize a total of 27 airports by mid-2018, as part of ongoing fiscal reforms in the wake of falling oil prices.

The Kingdom will transfer ownership of the airports to the sovereign wealth fund while they’re prepared to be privatized, Saudi Civil Aviation Holding chairman Faisal Al-Sugair told Bloomberg in April.