NAS attracts new shareholders and increases capital to over SR1 billion

This increase comes as a result of a sale of new shares, representing 30% of the company, to a group of Saudi investors through "Abraaj Nas Investment Co" (ANIS) hence enlarging the shareholder base of the 7-year old company.

According to its latest financial valuation - undertaken by a highly respected international consulting firm - the company's market value was estimated at a minimum of SR1.5 billion. Considering the company's paid up capital of SR383 million, this represents almost a quadrupling of its value since its establishment and an annual return-on-investment that is said to have reached record levels in recent years.

Market experts are hailing this announcement as a credit to NAS, which was able through a history of successful operations during the past seven years to secure a lead position in the Middle East aviation market. Market analysts also foresee NAS' move as the first step towards transforming the company's legal status and taking it public.

This NAS announcement also marks an important chapter in the history of the aviation sector in Saudi Arabia and specifically in the air travel industry. The success of NAS demonstrates the capacity of the Saudi air travel market to accommodate new local investments.

This success also proves that the Saudi private sector is capable of playing a more dynamic role in the development of the Saudi commercial and private aviation markets through diversified investments. Such investments further enhance the national economy and open fresh horizons via new and innovative services to cater for the various market segments including locals, residents and visitors alike, starting from the Saudi market - which is considered the region's biggest - before expanding to include the Middle East and Gulf markets.

This success should also be attributed to the foresight of the Saudi leadership which approved the Higher Economic Council decision to open the national aviation sectors for private investments.

Commenting on the new announcement, Mohammed Al Zeer, NAS President and CEO, said that the capital increase will be entirely invested in financing a number of strategic services which the company plans to unveil during the next few months and will further support the company's technical capabilities to meet the rapid expansion in its operations.

Al Zeer further explained that the decision to increase the company's capital and the enlargement of its shareholders base was a logical outcome of a series of market studies and research conducted on the Middle East aviation market, which since 2001 is said to have been witnessing a phase of revival coupled with unprecedented growth rates in the demand on commercial and private aviation services. "These positive developments lead many private companies to show interest and venture into aviation projects in an attempt to meet the rising demands on all aviation services and lead to the development and enhancement of service levels that are offered to the sector's clients.