EXCLUSIVE: Ras al-Khaimah appoints adviser for airport privatisation

04 October 2017
International firm will advise on privatising international airport

The Northern Emirate Ras al-Khaimah has appointed Netherland’s KPMG to advise them on privatisation of the Ras al-Khaimah international airport.

According to sources close to the scheme, KPMG will advise the Northern Emirates’ airport company on privatisation and which models to implement, from public-private partnership (PPP) to concessions. The airport has a current annual capacity of 1.5 million passengers.

Ras al-Khaimah is aiming to become a hub for low-cost carriers in the region. Air Arabia launched services from the northern emirate in 2014, the same year RAK Airways folded its operations.

The emirate has been planning to expand its airport for a number of years now. MEED reported in March 2016 that the emirate was planning to tender and award a contract for the expansion of the airport before the end of the year. Airport CEO Mohammad Qazi told media on 28 March that the firm plans to award the deal during 2016, with construction due to start in 2017. However, the project was subsequently put on hold.

The project was first announced in 2012 and was first put on hold in 2014. It was revived in mid-2015, although the list of prequalified contractors was not publicised.

The planned expansion work was to comprise of increasing the existing terminal’s capacity to 3.5 million passengers annually, from the current 1.5 million. It also involves the installation of baggage and cargo-handling facilities, among others.

Ras al-Khaimah’s decision to consider privatising its airport follows on from Saudi Arabia’s ambitious move to privatise its aviation sector. The kingdom has awarded a number of contracts to develop new and upgrade existing airports through PPP in 2017.

These contracts include a passenger terminal building at the Yanbu airport and the redevelopment of airports in Qassim and Hail, which were awarded to a team of Turkey’s TAV Airports and local Al-Rajhi Group.

A fourth contract, for the Taif International airport, was awarded to a consortium, which comprises local Asyad Group, Germany’s Munich Airports and Lebanon’s Consolidated Contractors Company.

Saudi Arabia’s first airport PPP, the $1.2bn Prince Mohammed bin Abdulaziz International airport in Medina, entered full operations in 2015.

The kingdom is also planning to sell significant stakes in existing major airports. MEED reported in July that Saudi Civil Aviation Holding Company (SCAHC) was planned to point an adviser for the planned stake sale in Riyadh’s King Khalid International Airport (KKIA).

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