Saudi Arabia "to launch duty-free tender this year"

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Tina Milton

20-Mar-2006

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The General Authority of Civil Aviation plans to award the country's first airport duty-free contracts by November, according to local reports

Contracts to operate airport duty-free shops in Saudi Arabia will be awarded by November, according to local press reports.

The General Authority of Civil Aviation is understood to have consulted at least one international retailer with a view to launching a tender this year. Saudi Arabia has three international airports: King Khaled International airport in Riyadh, King Abdul Aziz airport in Jeddah and King Fahad airport in Dammam, the biggest of the three in terms of traffic.

A planned $1.5bn expansion of King Abdul Aziz airport in Jeddah will increase the airport's annual capacity to 21m passengers. The expansion includes the construction of two new terminals and the renovation of the south terminal, a new concourse with 25 gates and an extensive upgrade of the landside and airside infrastructure.

Commenting on the prospects for a tender in Saudi Arabia, Aer Rianta International-Middle East managing director John Sutcliffe said: "We expect that something will happen this year. The civil aviation authorities have employed consultants to develop their airports and they have shown the intent to move forward. We're keeping a close eye on the business there. We hope that, if the business does go to tender, that everyone will bid sensibly."

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