Saudi finance ministry, GACA form committee to supervise airport privatization

Saudi Arabia’s Ministry of Finance and the General Authority of Civil Aviation (GACA) have formed a committee to oversee the transfer of the kingdom’s airports and their land from GACA to the new Civil Aviation Holding Co., Al-Madinah newspaper reported.

The committee will also be responsible of transferring GACA’s assets, liabilities and rights, as well as handling financial settlements within three years and relocating the operations team to the new entity. 

Saudi Arabia is looking to turn GACA into a holding company and transfer its ownership to the Public Investment Fund (PIF), Al-Hayat newspaper reported in January this year, citing unnamed sources.

The kingdom plans to privatize 27 airports by mid-2018, as part of ongoing fiscal reforms in the wake of falling oil prices.

Riyadh’s King Khaled International Airport was privatized in Q1 2016, while Jeddah’s King Abdulaziz International Airport and Dammam-based King Fahad International Airport will be privatized in Q2 and Q3 2017 respectively.

Under the privatization plan, the ownership of all land and airports under GACA will be transferred to Civil Aviation Holding Co., except for land that is set aside for commercial development and potential expansions.