Saudi Arabia plans to reduce charges by 35% at main airports

Saudi Arabia will aim to compete in an area that already has some of the busiest passenger hubs in the world by reducing airport costs by up to 35%, according to Bloomberg.

The cut, which will be implemented later this year and apply to the airports in Riyadh, Jeddah, and Dammam, was announced by the General Authority of Civil Aviation as the next stage in the continuing privatization of the industry.

According to the General Authority of Civil Aviation, airports will have enough latitude to lower costs below the specified maximum limits to increase passenger flow as much as possible.

The move comes after Saudi Arabia said it would provide incentives for airlines to operate unprofitable routes

 The kingdom is looking to better compete with the major hubs in the neighboring Emirates and Qatar.

The move is the latest effort in Crown Prince Mohammed bin Salman’s strategy to diversify the kingdom’s economy away from oil and transform Riyadh into a global business hub.