Saudi Arabia is expected to issue tenders for the modernisation of two of its airports worth SR17bn (US$4.5bn) in May this year.
The General Authority of Civil Aviation (GACA) will issue the tenders to build a new airport in the city of Madinah and a commercial centre near King Abdulaziz International Airport in Jeddah, according to Reuters.
The new Madinah airport, estimated to cost between SR7bn ($1.8bn) and SR8bn ($2.1bn), will increase traffic capacity from three million to eight million passengers a year.
GACA will offer a 25-year build, operate and transfer (BOT) contract for the development of the new airport.
The SR10bn ($2.6bn) airport city project at Jeddah airport will include the construction of hotels, office buildings, housing units, malls and a flight academy.
GACA has offered two large pieces of land, measuring 1km² and 1.4km², to domestic and foreign investors for the development of the project.
The Saudi Government has also said it intends to launch other projects at a cost of SR55bn ($14.6bn) to help modernise airports over the next 20 years depending on the increasing traffic at Saudi airports.
According to GACA, traffic at Saudi airports has reached 30 million passengers annually and is expected to double to 60 million over the next ten years.