Saudi Shoura Council calls on GACA to establish low-cost airports around Riyadh

The council also emphasized the need for GACA to activate the annual target for air freight in accordance with the National Transport and Logistics Strategy.  Shutterstock
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Updated 01 October 2024
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Saudi Shoura Council calls on GACA to establish low-cost airports around Riyadh

RIYADH: Saudi Arabia will soon assess the feasibility of establishing low-cost airports around Riyadh following a call from the Kingdom’s Shoura Council. 

The country’s Consultative Assembly urged the General Authority of Civil Aviation to build and operate the planned airports or offer them to the private sector in a build-operate-transfer manner, according to a post on X. 

Additionally, the council recommended that GACA collaborate with national carriers to increase domestic flights and diversify their destinations to enhance transportation and tourism services. 

These initiatives align with the Kingdom’s aviation sector goals, such as increasing passenger numbers and expanding flight routes. They also support GACA’s vision of enabling Saudi leadership in aviation through customer-centric and digitally-enabled regulatory services. 

The council also emphasized the need for GACA to activate the annual target for air freight in accordance with the National Transport and Logistics Strategy. 

Earlier this week, Riyadh-based King Khalid International Airport was recognized as one of the top three performing terminals in the Kingdom, according to official data.  

In its monthly report for April, GACA indicated that the airport led the category for international terminals with over 15 million passengers annually, achieving an 82 percent compliance rate with the authority’s standards. 

The evaluation, based on 11 key criteria, aims to improve service quality and enhance the passenger experience.  

Earlier in May, in an interview with Arab News on the sidelines of the Future Aviation Forum held in Riyadh, Vice President of GACA for Quality and Traveler Experience, Abdulaziz Al-Dahmash, said the Kingdom has set “very ambitious targets” in this sector.   

He noted that these targets include tripling the number of passengers compared to 2019, handling 4.5 million tonnes of cargo, and establishing more than 250 direct destinations from the Kingdom’s airports to global locations. 

“Those key targets need enablers, and one of the key pillars is our passenger experience, and we always say that the passenger comes first, so from that perspective, we started different programs from a regulator perspective,” Al-Dahmash told Arab News at the time.


Closing Bell: Saudi main market edges up to 11,458 points  

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Closing Bell: Saudi main market edges up to 11,458 points  

RIYADH: Saudi Arabia’s Tadawul All Share Index closed Wednesday at 11,458.11, up 0.67 percent, or 76.28 points, driven by selective buying in real estate, insurance, and healthcare stocks. 

The Nomu Parallel Market Index also finished higher, rising 0.44 percent to 23,855.01, while the MSCI Tadawul 30 Index added 0.69 percent to close at 1,543.87.  

Trading activity was moderate, with total volume reaching 280 million shares and a traded value of SR6.32 billion ($1.68 billion). 

On the gainers’ side, Marketing Home Group for Trading Co. surged 8.97 percent to SR59.50, leading advances. Al Ramz Real Estate Co. rose 6.42 percent to SR68.75, while Bupa Arabia for Cooperative Insurance Co. added 5.64 percent to close at SR164.80.   

Al Aziziah REIT Fund gained 5.22 percent to SR4.23, and Alistithmar AREIC Diversified REIT Fund advanced 4.19 percent to SR7.70.   

On the downside, Consolidated Grunenfelder Saady Holding Co. fell 4.27 percent to SR10.10. Thob Al Aseel Co. declined 4.01 percent to SR3.83, while National Gypsum Co. slipped 3.10 percent to SR15.92. 

Tabuk Agricultural Development Co. ended the session down 2.65 percent at SR7.72, and Tourism Enterprise Co. fell 2.54 percent to SR13.81.  

On the announcement front, Al Moammar Information Systems Co. said it has executed the investment agreement to acquire a 15 percent stake in the “Eltizam” electronic insurance platform, with a total investment value of SR19.5 million.   

The company said the subscription and purchase agreement was signed on Jan. 28 between Al Moammar Information Systems and Eltizam Electronic Insurance Brokerage Co., following the board’s earlier approval of the transaction.   

Shares of Al Moammar Information Systems closed at SR180.50, up 1.40 percent.  

In a separate disclosure, Al Moammar Information Systems Co. announced the latest developments related to its participation as a founding shareholder in the establishment of a Shariah-compliant digital bank in Saudi Arabia, known as Vision Bank.   

The company said a subscription agreement for a capital increase was jointly executed on Jan. 28 as part of a broader plan to raise Vision Bank’s capital to SR3 billion from SR1.5 billion.   

Al Moammar Information Systems said the value of its subscription amounts to SR23.75 million, based on a pre-money valuation of SR3.2 billion for Vision Bank.  

Alinma Bank announced that its board of directors has recommended increasing the bank’s capital by 20 percent through the capitalization of reserves and retained earnings via the issuance of bonus shares.   

Under the proposal, shareholders would receive one bonus share for every five shares held, raising the bank’s capital to SR30 billion from SR25.0 billion.   

The bank said the capital increase is intended to strengthen financial solvency and support future growth, subject to approvals from regulators and the extraordinary general assembly.  

Alinma Bank said it has received a no-objection from the Saudi Central Bank.  

Shares of Alinma Bank closed at SR28.26, up 3.21 percent.