Contributor - Middle East

Peter Shaw-Smith

Saudi Arabia has become the focus of airport development in the Middle East as it seeks to drive income from tourism from 3.8 percent in 2019 to 10 percent of GDP by 2030.&nbsp;Funded by a deep-pocketed sovereign wealth fund, the plan aligns with the kingdom's Saudi Aviation Strategy 2030, launched in 2022 and backed by $100 billion in investments from the government and private sectors, according to a recent paper published by Goldman Sachs.
Aiming to triple the aviation sector’s contribution to the economy to $74.6 billion by 2030, Saudi Arabia has set key targets to extend connectivity to 250-plus destinations across 29 airports; triple annual passenger traffic to 330 million versus around 100 million carried in 2019; increase air cargo volume to 4.5 &nbsp;million tons (from 0.8 million tons today); and add two global long-haul connecting hubs, the investment bank said. Jeddah and Riyadh stand in pole position to serve as such axes.
Toward the end of last year, Saudi Arabia launched a master plan to expand and modernize King Salman International Airport (KSIA) in Riyadh. Meanwhile, an expansion plan to increase capacity to 114 million passengers per year by 2030 at&nbsp;Jeddah Airport drew an investment of more than $30 billion, Riyadh-based Al Jazira Capital said in a September note. The kingdom plans to privatize the airports in Abha, Taif, Hail, and Qassim.
British architects Foster &amp; Partners won a competition to design the master plan for KSIA last November. The firm said the airport would become one of the world’s largest, at an area of approximately 57 square kilometers, allowing for six parallel runways, including the existing terminals named after King Khalid. It will also house 12 square kilometers of airport support facilities, residential and recreational facilities, retail outlets, and other logistics real estate.
“The airport aims to accommodate up to 120 million travelers by 2030 and 185 million travelers, with the capacity to process 3.5 million tons of cargo, by 2050,” Saudi Arabia's Public Investment Fund said last year. For context, Dubai International Airport had a throughput of 66 million passengers in 2022.
Dubai could see its success as the major Middle East hub for transit traffic challenged if Saudi Arabia’s plans come to fruition. As the world’s busiest international airport, Dubai International will handle a projected 88 million passengers this year, throwing into relief the sheer magnitude of the goals Saudi airport planners have set themselves in Riyadh.&nbsp;
Goldman Sachs said the Ministry of Hajj and Umrah also expects a dramatic rise in pilgrimage tourism, targeting a rise in total visitors from 7 million in 2022 to 30 million in 2030.&nbsp;
Addressing the annual general meeting of the Arab Air Carriers Organization (AACO) in Riyadh on October 31, IATA director general Willie Walsh said the kingdom set an all too rare example of a government fostering its connectivity as a key element of its overall economic strategy.
“Saudi Arabia’s commitment is much more than words on paper,” he commented. “The determination of the kingdom’s leadership to diversify its economy under Vision 2030 has brought critical support for aviation—from major investments in tourism to impressive infrastructure developments and a growing number of airlines. Saudi Arabia is clearly preparing for aviation to play an even bigger role in its future.”
In the UAE, Dubai Airports plans to announce the next phase of Al Maktoum International Airport's expansion for commercial aviation, but the complexity of the planning could mean that official word won't come until next year. “There’s no update on the phase two as yet, and our next big announcement will be during the airshow where we will issue the third-quarter traffic report,” a spokesperson for Dubai Airports told AIN at the end of October.&nbsp;
Abu Dhabi Airports said an Etihad ceremonial flight would take place on October 31 before the launch of full operations at the new Terminal A on November 1. Authorities will rename the airport after the UAE’s founding president, Sheikh Zayed bin Sultan Al Nahyan, who died in 2004. The new name, Zayed International Airport, will take effect on February 9, 2024, coinciding with the official opening ceremony of the new Terminal A, according to official news agency WAM.

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