Saudi Arabia’s King Fahd International airport has signed an agreement with US-based XP Jet America to develop and run a private airport in Dammam.

The project, which is expected to be completed by 2017, will be developed by XP Jet America.

The new terminal will be located north of the royal pavilion and will be able to accommodate about 20 aircraft, according to local reports.

The number of passengers travelling through Saudi Arabia’s airports reached 74.7 million in 2014, marking a 10 per cent uplift from the previous year. It also exceeded by 37 per cent the forecast passenger traffic in the kingdom’s development plan for 2010-14.

The General Authority of Civil Aviation (Gaca) is currently executing an estimated $12bn-worth of expansion, renovation and new airport schemes across the kingdom.