Saudi Arabia Grants Civil Aviation Authority Financial Independence
The Saudi government has approved a new regulatory framework for the General Authority of Civil Aviation (GACA), granting it expanded powers to achieve financial sustainability and operate independently from the state budget.
Under the new structure, approved recently by the Council of Ministers, GACA will gradually transition to self-funding through revenue generated from its services. While it will initially receive allocations from the state budget, the long-term goal is for the authority to maintain its own independent annual budget and a reserve fund equal to twice its previous year's expenditures.
The move is part of Saudi Arabia's broader strategy to modernize and privatize key sectors, in line with the national transport and logistics strategy. GACA's updated mandate includes regulating and developing the civil aviation sector, improving oversight, and making the industry more attractive to private investment.
GACA is now authorized to invest its revenues to support its financial goals. The Minister of Transport and Logistics—who also chairs the authority's board—and the Minister of Finance will jointly oversee how these investments are managed.
The authority can also impose service fees for activities and operations it oversees. However, these fees must be coordinated with the Ministry of Finance and the Center for Non-Oil Revenue Development, until a broader regulatory framework for government service charges is finalized.
The new structure empowers GACA to set policies, draft regulations, and monitor compliance across the aviation sector. This includes oversight of airport operations, enforcement of safety and performance standards, and ensuring alignment with the civil aviation strategy.
GACA will also handle flight permits for scheduled, charter, military, and diplomatic flights, and approve commercial agreements involving domestic and international carriers. It will set unified standards for smart airport technologies to improve passenger experience, in collaboration with the Communications, Space and Technology Commission.
Environmental protection will also fall under GACA's jurisdiction, including the design and supervision of aviation-related sustainability programs, while agreements between Saudi and foreign airlines operating to and from the Kingdom must comply with international treaties and reflect economic, social, and security priorities.
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