Revenue expected be in the 100s of million for $23bn project
Riyadh Metro is to auction the naming rights for some of its stations, officials announced on Sunday.
The Supreme Authority for the Development of Riyadh, which is overseeing the $23 billion project, said the move is aimed at maximising revenues from the project, which is expected to open in 2019.
The auction, which will offer naming and advertising rights for ten stations at key locations in the city, is open to both local and international companies who are licensed in the kingdom, officials said.
Alwalid Alekrish, director of Construction Development Projects and project director of the Riyadh Metro, said the new city transportation system will carry one million passengers a day, and is capable of carrying 1.3 billion passengers per year.
“(The revenues) will be allocated for running the train and supporting the public transit system in the city”, Alekrish said.
The tender process will close on December 17 next, with the winning bids expected to be announced on January 25.
The potential revenue earned from the naming rights is expected to run into the 100s of millions. When Dubai launched its naming rights for 13 Dubai Metro stations in 2008, it earned close to $250 million.
Construction began on the six line project in 2014. The 176-kilometre network will include 85 stations across the city, served by electric, driverless trains.