Jacobs to Support New Airport Development in Saudi Arabia

Rhea-AI Summary

Jacobs (NYSE:J) has been chosen by King Salman International Airport Development Company to provide concept masterplan validation, detailed masterplan design, runway design, and other services for the King Salman International Airport in Riyadh, Saudi Arabia. The project, part of Saudi Arabia's Vision 2030, will cover an area of 57 square kilometers and include six parallel runways, new terminals, and real estate development.

The airport aims to accommodate up to 100 million passengers annually by 2030. It will prioritize low-carbon design, renewable energy, and technological innovation to achieve LEED Platinum certification. Jacobs and Foster + Partners previously won a competition to design the concept masterplan for the airport.

Positive

• Secured a major contract for the King Salman International Airport development in Saudi Arabia
• Project aligns with Saudi Arabia's Vision 2030, potentially leading to long-term business opportunities
• Airport aims to accommodate 100 million passengers annually by 2030, indicating significant project scale
• Focus on sustainability and LEED Platinum certification may enhance Jacobs' reputation in green infrastructure

Negative

• None.

Insights

Aviation Infrastructure Expert

This project represents a significant opportunity for Jacobs in the rapidly growing Saudi Arabian aviation sector. The scale of the King Salman International Airport, covering 57 square kilometers with six parallel runways, positions it as a potential game-changer in global air travel. The anticipated capacity of 100 million passengers annually by 2030 is particularly noteworthy, as it would place this airport among the world's busiest.

The focus on sustainability and LEED Platinum certification aligns with global trends in airport design and could set new industry standards. However, investors should be cautious about potential challenges in executing such an ambitious project, including geopolitical risks and the volatility of oil prices which could impact Saudi Arabia's economy and the project's funding.

Sustainable Development Analyst

The emphasis on low-carbon design and renewable energy in this massive airport project is commendable and aligns with global sustainability goals. Achieving LEED Platinum certification for an airport of this scale would be a significant feat, potentially setting new benchmarks for sustainable aviation infrastructure. This focus could provide Jacobs with valuable expertise in green airport design, a growing niche in the industry.

However, the environmental impact of such a large-scale project, including increased air traffic, cannot be overlooked. Investors should consider both the potential for Jacobs to leverage this experience in future projects and the reputational risks associated with large-scale aviation developments in an era of increasing climate awareness.

Economic Development Strategist

This project is a cornerstone of Saudi Arabia's Vision 2030, aiming to diversify the economy beyond oil. The concept of an aerotropolis - a city built around an airport - could significantly boost economic activities in sectors like tourism, logistics and real estate. For Jacobs, this presents an opportunity to be at the forefront of a transformative project with potential long-term benefits.

However, the success of this ambitious plan hinges on factors beyond airport construction, including geopolitical stability, global travel trends and the overall success of Saudi Arabia's economic diversification efforts. Investors should weigh the potential for substantial long-term gains against the risks associated with such a large-scale, geopolitically sensitive project in a region undergoing rapid change.

Leverages global aviation capabilities and sustainable initiatives to deliver masterplan and runway design

DALLAS, Aug. 20, 2024 /PRNewswire/ -- Jacobs (NYSE:J) was selected by King Salman International Airport Development Company to provide concept masterplan validation, detailed masterplan design, runway design and other services for the King Salman International Airport in Riyadh, Saudi Arabia.

The masterplan will cover an area of approximately 57 square kilometers and include six parallel runways, new terminals and real estate development in the surrounding area.

The vision for the dynamic and innovation-focused aerotropolis centers around a unique customer experience with entertainment and world-class, efficient operations. Part of Saudi Arabia's Vision 2030 for economic development and growth, it will provide the additional passenger and freight capacity needed to support multiple giga-project developments.

King Salman International Airport Development Company anticipates the airport will accommodate up to 100 million passengers annually by 2030. The project will prioritize low-carbon design, use of renewable energy and technological innovation to deliver more sustainable and efficient operations, achieving LEED Platinum certification and offering a unique travel experience for visitors.

"This project supports The Kingdom of Saudi Arabia's ambition to deliver the strategic objectives under Vision 2030, showcasing the Kingdom to the world and diversifying the economy into new areas such as tourism," said Jacobs Senior Vice President Keith Lawson. "We look forward to delivering this project with our local talent, partners and our global aviation team and are excited for the growth and positive change it will bring for decades to come." 

"We are committed to delivering this airport as a global benchmark, propelling Saudi Arabia's 2030 vision for Riyadh's transformation into a global hub that position Saudi Arabia as an economic powerhouse," said KISA Acting CEO Mr. Mejia. "We are thrilled to welcome Jacobs to work closely with the KISA team. Their combined expertise will be instrumental in delivering a world-class airport that surpasses expectations and fuels regional economic prosperity."

Jacobs and architects Foster + Partners previously won a competition to design the concept masterplan for King Salman International Airport.

At Jacobs, we're challenging today to reinvent tomorrow by solving the world's most critical problems for thriving cities, resilient environments, mission-critical outcomes, operational advancement, scientific discovery and cutting-edge manufacturing, turning abstract ideas into realities that transform the world for good. With approximately $16 billion in annual revenue and a talent force of more than 60,000, Jacobs provides a full spectrum of professional services including consulting, technical, scientific and project delivery for the government and private sector. Visit jacobs.com and connect with Jacobs on Facebook, Instagram, LinkedIn and X.

Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," and similar words are intended to identify forward-looking statements. We base these forward-looking statements on management's current estimates and expectations, as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements including, but not limited to, our plans to spin off and merge with Amentum our Critical Missions Solutions  business and a portion of our Divergent Solutions business in a proposed transaction that is intended to be tax-free to stockholders for U.S. federal income tax purposes, the timing of the award of projects and funding and potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act and other legislation related to governmental spending, as well as general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets, the possibility of a recession or economic downturn, geopolitical events and conflicts, and the impact of any future pandemic or infectious disease outbreak, including the related reaction of governments on global and regional market conditions, among others. For a description of some additional factors that may occur that could cause actual results to differ from our forward-looking statements, see the discussions contained under Item 1 - Business; Item 1A - Risk Factors; Item 3 - Legal Proceedings; and Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recently filed Annual Report on Form 10-K, and Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations; Item 1 - Legal Proceedings; and Item 1A - Risk Factors in our most recently filed Quarterly Report on Form 10-Q, as well as the company's other filings with the Securities and Exchange Commission. The company is not under any duty to update any of the forward-looking statements after the date of this press release to conform to actual results, except as required by applicable law.

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SOURCE Jacobs

FAQ

What is Jacobs' role in the King Salman International Airport project?

Jacobs (NYSE:J) will provide concept masterplan validation, detailed masterplan design, runway design, and other services for the King Salman International Airport in Riyadh, Saudi Arabia.

How large is the planned King Salman International Airport?

The masterplan for King Salman International Airport covers an area of approximately 57 square kilometers and includes six parallel runways, new terminals, and surrounding real estate development.

What is the passenger capacity goal for King Salman International Airport by 2030?

King Salman International Airport Development Company anticipates the airport will accommodate up to 100 million passengers annually by 2030.

How does the King Salman International Airport project align with Saudi Arabia's goals?

The project is part of Saudi Arabia's Vision 2030 for economic development and growth, aiming to showcase the Kingdom to the world and diversify the economy into new areas such as tourism.