Arab Today, arab today airports and travel will survive saudi budget cuts
Last Updated : GMT 11:25:55
Arab Today, arab today
Arab Today, arab today

Airports and travel will survive Saudi budget cuts

Arab Today, arab today

Arab Today, arab today Airports and travel will survive Saudi budget cuts

Pilgrims walk outside the King Abdul Aziz airport upon their arrival in Jeddah
Riyadh - Arab Today

Saudi Arabia’s 2016 budget cuts could have a dampening effect on airport construction and airline travel in the country, analysts say.

But even with a sudden loss of altitude, the landing should be soft.

“For airport construction, you could consider building a grand palace instead of a majestic palace,” said Will Horton, a senior analyst at the Centre for Aviation (Capa). “But this is a long-term decision, not something easily adjusted for one year’s budget.”

Mr Horton said that even amid financial cuts, few airports in the region are designed with strict budgets in mind, as they are viewed as long-haul investments.

His stance was seconded by Mark Martin, the chief executive of Dubai-based Martin Consulting, who said that airports such as Jeddah, Taif and Medina would continue to attract passengers visiting for Haj and Umrah without signals of scaling back.

“Jeddah airport with the Mega Haj bin Laden Terminal in service at the moment is expected to soon reach maximum capacity, and as a result we don’t believe there will be any roll back on the development of the new Jeddah Airport,” said Mr Martin.

He said that in the end, the outlook depends on the oil price.

“This period will probably be the most significant for Saudi Arabia because the country’s biggest economic wealth driver has been devalued to its lowest level ever,” he said.

The decline in oil to an 11-year low last week of $35.98 – down from a high of about $115 per barrel in June last year – has hit the oil exporter hard.

The country has liquidated foreign assets held at the central bank and its sovereign wealth funds to plug the fiscal deficit.

Regardless, Arabian Gulf carriers such as Emirates have been bullish on Saudi Arabia lately. The Dubai carrier operates 70 flights a week to the kingdom – between Dubai and Riyadh, Jeddah, Dammam and Medina.

On December 15, it added a third daily flight to Riyadh in response to rising demand from business and leisure travellers.

Mr Horton said that any curb in Saudi Arabia’s government travel is likely to affect Saudi Airlines (Saudia).

However, he ruled out the possibility of government officials travelling in economy class, let alone low-cost carriers, as has happened in China amid austerity measures.

Meanwhile, Saudi Arabia’s economic situation gives more urgency for reform. Promoting aviation as an economic growth engine could be effective, as Saudi Arabia wants to increase non-oil revenues.

“The focus now shifts [for Saudi Arabia] to it building economic sustainability and, importantly in the coming years, balance its fiscal deficit by realigning its economic drivers,” said Mr Martin.
Source: The National

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today airports and travel will survive saudi budget cuts Arab Today, arab today airports and travel will survive saudi budget cuts

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: اقتصاد عربي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday