Private investment opportunities on the rise in Middle East airports
Private investment opportunities on the rise in Middle East airports |
The Bahrain Government recently announced the first stages of a plan to privatise Bahrain International Airport. The airport, which is currently undergoing expansion, will be converted into a company to be commercially managed as part of the Bahrain Property Holding Company (BPCH), in cooperation with the private sector under the supervision of the civil aviation authority. Iranian State Airports Organisation meanwhile announced it is likely to allow private sector interests to fully manage Qeshm Airport, located in southern Iran. The second phase of the development of the airport is currently being carried out by a consortium comprised of four Iranian, three Singaporean, Malaysian, and Australian companies, under a BOT contract, which was awarded in late 2006. The Yemen Government has also confirmed plans to invite foreign bids for the management of two companies that will be formed to oversee the operation of Aden International Airport and ground services at the airport, which is a gateway to a popular tourism and business region. Meanwhile, the Emirate of Ajman announced plans in mid-Dec-07 to establish the UAE’s seventh international airport. The USD3.3 billion facility, located in the Al Manama area of the emirate, will be constructed over two phases on 6 million sqm of land and will be developed by a Spanish-led consortium of four companies on a build, operate and transfer (BOT) model. However, the key regional gateway of Dubai is unlikely to be open for foreign investment soon, despite a massive development programme under way in the emirate. Dubai Airports recently confirmed that airport financing would continue to be sourced from the government, and that it is “far too early” for the company to consider an IPO, as it is “only just finding its feet” as a separate entity outside of the Dubai Department of Civil Aviation. But most of the rest of the region is fertile ground for internationally-focused airport operators. For more information, subscribe to the Monthly Essential Middle East, covering airport development updates from across the region, as well as strategic airline activity each month. |
