Tendering and contract strategy at King Abdulaziz International Airport (KAIA), Jeddah   

Transforming Commercial Operations 

In just 2.5 years, daa International helped King Abdulaziz International Airport (KAIA) quadruple non-aeronautical revenues to SAR 1.4 billion (€350 million), double the original target, while annual passenger traffic grew from 32 million to 55 million. This success was achieved through a comprehensive commercial transformation, structured contract governance, and re-tendering major contracts, including the airport’s largest-ever duty-free and F&B agreements. 

The Strategic Importance of KAIA 

KAIA is Saudi Arabia’s largest aviation hub and a key gateway for pilgrims traveling to Mecca and Medina. Its role in tourism and national economic development is critical. Transitioning from government-managed operations to a commercially driven structure under JEDCO, alongside post-COVID recovery and a new terminal launch, made commercial transformation both urgent and complex. 

Driving Commercial Transformation 

daa International focused on:  

  • Restructuring the commercial team (46 staff) and embedding long-term capabilities 
  • Upskilling teams with tailored training programs and immersive sessions in Ireland 
  • Managing tenders for major commercial opportunities to attract world-class operators 
  • Boosting revenues and reducing reliance on government funding 
  • Enhancing passenger experience through improved commercial offerings 

Highlight: Transformation delivered measurable growth in both revenue and service quality.  

Our Approach  

  • Commercial Audit & Contract Governance 
  • Reviewed 330+ contracts, categorizing them through a structured lifecycle 
  • Renegotiated, terminated, or re-tendered underperforming agreements 
  • Introduced revenue assurance policies and transparent commercial terms, generating substantial financial growth 
  • Organisational Restructure & Capacity Building 
  • Realigned job roles and responsibilities with measurable outcomes 
  • Introduced career progression frameworks and staff development programs 
  • Embedded performance metrics, reporting lines, and results-driven culture 
  • Integrated Tendering Program 
  • Re-tendered duty-free (10,000+ sqm) and F&B outlets (28 locations), securing top global operators 
  • Largest commercial airport contract by footprint and value in Saudi Arabia 
  • Surpassed market expectations for financial returns and service standards 
  • Embedded Advisory Role 
  • Supported Commercial, ORAT, Operations, Finance, Airline Development, and HR functions 
  • Ensured commercial strategy aligned with operational performance and long-term growth 
  • Adapted to additional responsibilities, demonstrating flexibility and operational leadership 

Delivering Measurable Growth  

  • Non-aeronautical revenues quadrupled to SAR 1.4 billion in 2.5 years 
  • Passenger traffic increased from 32 million to 55 million annually 
  • Retendered the Kingdom’s largest airport contract by value, attracting top-tier global operators 
  • Transformed the commercial department into a high-performing team 
  • Earned industry recognition for governance, transparency, and process clarity 

Insights for Airports Globally  

  • Clear communication and governance are key in emerging or transitioning markets  
  • Early investment in contract visibility supports sustainable growth 
  • Tendering is a strategic opportunity to strengthen the airport brand 
  • Cross-functional integration of commercial and operational teams enhances passenger experience and revenue alignment 
  • Structured tendering processes are replicable across airports worldwide 

Looking Forward

  • Expand structured tendering methodology across all commercial categories
  • Continue investing in staff development and robust financial systems 
  • Apply the model to other airports undergoing commercialisation or public-private partnership transitions 
  • Treat tendering as a strategic storytelling tool, positioning the airport as a compelling commercial brand 

“In just two and a half years, we helped Jeddah Airport quadruple non-aeronautical revenues to SAR 1.4 billion and grow traffic from 32 million to 55 million passengers.”  
— John Holland, Senior Commercial Expert, daa International  

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