Decision No. (37/588) dated 21/02/1445 AH corresponding to 06/09/2023 AD
The Board of Directors of the General Authority of Civil Aviation
Based on the powers granted to it by law, and pursuant toArticle (Sixteen) of the Civil Aviation Lawissued by Royal Decree No. (M/44) dated 18/7/1426 AH, which stipulates that the Authority shall organize, monitor, develop, and activate the air transport sector and implement the general policies of air transport in the Kingdom, and for this purpose it has the authority to "determine the financial fees for issuing licenses, permits, approvals, and the services provided by the Authority, and approve the financial fees for airport and air navigation services if provided by the private sector, in accordance with what is specified by the regulation," and pursuant toArticle (179)of the same law which states that "the Board of Directors shall issue the executive regulations and necessary decisions to implement the provisions of this law," and pursuant to the Royal Order No. 17049 dated 11/4/1438 AH, approving that the General Authority of Civil Aviation shall take the necessary measures regarding "separating regulatory (supervisory) functions from the operational functions of the Authority, reviewing its organization, related laws and decisions, and submitting what requires action thereon."
After reviewing the following:
- The Law of Transporting Pilgrims to the Kingdom and Returning them to their Countriesissued by Royal Decree No. M/58 dated 28/12/1425 AH, and its Implementing Regulation.
- The economic regulations governing the air transport sector in the Kingdom issued by the Board of Directors of the General Authority of Civil Aviation Decision No. (3-1) dated 2/1/1427 AH.
- The regulation organizing ground handling services activity issued by the Board of Directors Decision No. (6-1) dated 2/1/1427 AH.
- The Implementing Regulation of the Civil Aviation Tariff Lawissued by the Board of Directors of the General Authority of Civil Aviation Decision No. (2T-18) dated 16/3/1428 AH, and all its amendments.
- Board of Directors Decision No. (T-140) dated 1/11/1432 AH, which exempts GCC nationals from the provisions in Chapter Four (Licensing of Foreign Air Carriers) in the economic regulation of civil aviation.
- Board of Directors Decision No. (8-93) dated 1/8/1431 AH, including the study of the private aviation market status.
- Board of Directors Decision No. (T-164) dated 28/8/1433 AH, including the package of incentives offered to national carriers.
- Board of Directors Decision No. (12/217) dated 30/1/1435 AH, including the launch of a competition for ground services licenses at the Kingdom’s airports.
And based on what the public interest requires.
The Board decided the following:
First: Approval of the Civil Aviation Economic Policy in its attached form.
Second: Approval of the following economic regulations and their annexes in their attached form:
2- The Economic Regulation for Ground Services and Air Cargo Services.
Third: Approval of the matrix of authorities for the economic regulations in the attached form.
Fourth: This decision cancels all Board of Directors’ decisions that conflict with it, while maintaining the application of the fees stated in the Implementing Regulation of the Civil Aviation Tariff Law issued by the Board of Directors Decision No. (2T/18) dated 16/3/1428 AH, and all its amendments until a contrary decision is issued by the Board of Directors.
Fifth: Delegation of the Authority President the power to amend the annexes contained in the economic regulations referred to in this decision, with informing the Board of any amendments made to these annexes.
Sixth: Delegation of the Authority President to rectify the status of service providers holding valid economic approvals or licenses, and to issue the necessary decisions for that, including issuing economic licenses according to the aforementioned economic regulations, for a period of six months.
Seventh: These regulations shall be published in the Official Gazette and on the Authority’s website, and shall come into effect according to the timeline attached to this decision.
Eighth: This decision shall be communicated to all concerned for implementation.
And Allah is the Grantor of success.
Economic Policy of Civil Aviation in the Kingdom of Saudi Arabia
Preface
As the competent Authority tasked with the supervision, development, and regulation of the civil aviation sector in the Kingdom of Saudi Arabia, the General Authority of Civil Aviation (GACA) aims to strengthen the sector’s position as an attractive investment opportunity for both national and foreign private entities. This sector serves as a vital component of the national economy, as stipulated in Article IV of the Civil Aviation Law issued by the Council of Ministers Resolution No. 33 dated 11/2/1426 AH. In order to achieve its mandate, GACA undertakes the responsibility to devise and refine public policies, executive regulations governing the sector, and developmental plans and programs, and oversee their implementation and execution. In alignment with these commitments, GACA is now updating its Economic Policy of Civil Aviation that will act as a navigational guide for the updated economic regulations and operational guidelines. This policy serves as a significant catalyst in supporting and realizing the goals of the National Strategy for the Aviation Sector and is tailored to bolster the continued evolution and growth of Saudi Arabia’s aviation industry.
Policy Scope and Objectives
The scope of this policy focuses primarily on the economics of three fundamental pillars of the aviation industry: air transport, airports, and ground handling and air cargo sectors. These domains are significant due to their direct influence on the overall performance of the sector, their interconnectedness, and the profound impact they have on passenger and cargo services, as reflected through the National Aviation Strategy objectives.
Through this policy, we aim to ensure that the following goals are achieved: promoting competitiveness, enhancing operational efficiency and passenger experience, encouraging investment, enabling sector growth, ensuring fairness and transparency, creating job opportunities while ensuring compatibility with international best practices and the general strategic direction contained in the National Aviation Strategy, and contributing to raising the GDP of the national economy.
Policy Principles
Relevant Entities (Stakeholders) and Expected Roles
In order to achieve the objectives of this policy, the relevant authorities specified below, without prejudice to the competencies of other government entities, shall be responsible for their roles as follows:
General Authority for Civil Aviation (GACA):
1. Implementing and enforcing the policy guidelines and regulatory changes outlined in the policy document, and develop the necessary economic regulations to enable their implementation;
2. Ensuring that all relevant entities comply with the policy principles and economic regulations related to it;
3. Collaborating with government agencies and other relevant authorities to uphold the policy principles related to competition, fair market practices, transparency, and investment regulation;
4. Reviewing and updating economic regulations to align with the growth of the aviation sector;
5. Facilitating communication and cooperation among different aviation entities to ensure policy coherence and effectiveness, and alignment in achieving defined targets;
6. Stimulating the market and providing an attractive environment for investment.
Private sector players:
1. Complying with the policy principles and economic regulations related to it;
2. Implementing the provisions contained in the economic regulations related to their respective domains, be it air transport, airport operations, or ground handling and air cargo services;
3. Collaborating with the General Authority for Civil Aviation and other stakeholders to contribute to policy implementation, share insights, and address sector-wide challenges.