Saudi eyes bonds to fund airport expansion

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Muslim pilgrims wait in line as they arrive at Jeddah airport before going to the Saudi holy city of Makkah. (AFP/Getty Images)

Muslim pilgrims wait in line as they arrive at Jeddah airport before going to the Saudi holy city of Makkah. (AFP/Getty Images)

Saudi Arabia's government will issue bonds next year backed by the kingdom's ministry of finance to fund construction work at airports in Riyadh and Jeddah, Finance Minister Ibrahim Alassaf has told Al Arabiya television.

"The rest of the bonds for King Abdulaziz Airport in Jeddah and King Khaled Airport in Riyadh will be issued this (coming) year," Alassaf said on Sunday.

The kingdom's General Authority for Civil Aviation (GACA) said in January it planned to issue a second sukuk, or Islamic bond, at the end of 2012 to help fund its SR27bn ($7.2bn) airport in Jeddah.

A first sukuk, launched earlier this year and fully guaranteed by the Saudi Ministry of Finance, raised 15 billion riyals to help fund the Jeddah airport development.

Last year, industrial conglomerate Saudi Bin Laden Group won the contracts to develop the first phase of the Jeddah airport, raising its annual capacity to 30 million passengers.

Saudi Arabia is currently investing in multi-billion dollar infrastructure projects and revamping many of its airports to cater to a growing number of passengers.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

1
The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed
  • 9
    UAE teens among the highest for obesity rates

    @MT3 I forgot to add that of course this is assuming that the UAE moves toward a single payer model, something that I think has never been considered ... more

    Thursday, 28 August 2014 8:36 PM - Telcoguy
  • 9
    Smoke-free Dubai - the big debate

    Surprisingly the only studies that show a negative financial impact of the smoking ban on the hospitality industry are sponsored by tobacco companies ... more

    Wednesday, 27 August 2014 4:19 PM - Telcoguy
  • 3
    Saudi Arabia said to shelve plan for shorter working week

    It is working fine in the other gulf countries. In Oman, it is working very well and people, including business owners, adapted. Prices did not significantly... more

    Thursday, 28 August 2014 6:23 PM - Tariq AD