Saudi aviation to leave behind regional rivals
Saudi Arabia is emerging as a focal point for transformative
airport development in the Middle East, challenging the regional status quo.
The Saudi government, allocating up to $50 billion, is spearheading the
construction of King Salman International Airport with the aim of significantly
boosting tourism income from 3.8 percent in 2019 to 10 percent of GDP by 2030.
This ambitious plan, supported by a well-funded sovereign wealth fund, aligns
with the Saudi Aviation Strategy 2030, backed by a substantial $100 billion
investment from both the government and private sectors, as outlined in a
recent Goldman Sachs paper.
The overarching goal is to triple the aviation sector's
contribution to the economy, reaching $74.6 billion by 2030. Key targets
include expanding connectivity to over 250 destinations across 29 airports,
tripling annual passenger traffic to 330 million, increasing air cargo volume
to 4.5 million tons, and establishing two global long-haul connecting hubs,
with Jeddah and Riyadh positioned prominently for these roles.
Saudi
Arabia looking to attract $100 billion in aviation investments by 2030
Saudi Arabia initiated a master plan to modernize King
Salman International Airport in Riyadh, designed by the renowned Foster &
Partners. Envisioned as one of the world's largest airports, spanning
approximately 57 square kilometers, the plan includes six parallel runways,
extensive support facilities, residential and recreational spaces, retail
outlets, and logistics real estate. The airport aims to accommodate up to 120
million travelers by 2030 and 185 million by 2050, with a cargo processing
capacity of 3.5 million tons.
The ambitious scale of Saudi Arabia's airport development
poses a potential challenge to Dubai, the current major Middle East hub. Dubai
International Airport, the world's busiest international airport, is projected
to handle 88 million passengers in the current year. Goldman Sachs emphasizes
the significant goals set by Saudi airport planners, suggesting that if
realized, these plans could impact Dubai's transit traffic success.
Saudia
to become inaugural airline partner of Red Sea International Airport
Goldman Sachs also notes the Ministry of Hajj and Umrah's
expectation of a substantial increase in pilgrimage tourism, targeting a rise
in total visitors from 7 million in 2022 to 30 million in 2030. IATA director
general Willie Walsh commended Saudi Arabia's commitment, stating that the
kingdom's leadership is actively fostering connectivity as a key element of its
overall economic strategy. This commitment is evident in major investments in
tourism, impressive infrastructure developments, and the growing number of
airlines in the country.
While Dubai Airports is planning the next phase of Al
Maktoum International Airport's expansion, Saudi Arabia's robust strategy and
determination to diversify its economy under Vision 2030 position it as a
significant player in the future of aviation in the region.
Source: https://www.ainonline.com/