Thursday, 27 July 2017

Riyadh airport sale a challenge for privatization policy, and for Goldman Sachs | Arab News

Riyadh airport sale a challenge for privatization policy, and for Goldman Sachs | Arab News:

"They are tricky things to sell, airports. With high infrastructure costs, and major consumer interface and national strategic considerations to take into account, they tick many of the boxes marked “avoid” in modern investment strategy. So this week’s news that Saudi Arabia has hired investment bank Goldman Sachs to handle the sale of a stake in Riyadh’s King Khaled International Airport will represent a rigorous test of how the Kingdom intends to manage the huge privatization program — worth some $300 billion, including the estimated $100 billion Saudi Aramco initial public offering (IPO) — which is at the heart of the Vision 2030 reforms. News reports about the hiring of Goldman — later confirmed by the Saudi aviation authorities — did not specify what kind of sale would be involved. Would it be a sale to public equity investors via an IPO? A sale to private equity firms? Or a sale to a trade partner, like an existing airport operator?"



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