Bloomberg reported that Saudi Arabia will cut airport charges by as much as 35 percent to compete in a region that already has some of the world's biggest passenger hubs.

The reduction will apply to Riyadh's King Khalid International Airport, Jeddah's King Abdulaziz International Airport, and Dammam's King Fahd International Airport. Later this year, airport charges will be reduced.

Saudi General Authority of Civil Aviation (GACA) announced the slashes at the Farnborough Air Show on Wednesday as part of its ongoing privatization of the airport sector. In order to maximize passenger traffic growth, airports will be able to reduce charges below the caps announced, according to GACA.

Saudi Arabia recently said it would offer airlines incentives to fly unprofitable routes, days after opening its airspace to all airlines flying into and out of Israel. United Arab Emirates and Qatar, two major hubs in the region, are competing better with the Kingdom.

Saudi Arabia began offering tourist visas in late 2019 and subsidizing carriers to fly to the country is a recognition of the limited options travelers have. As part of Crown Prince Mohammed Bin Salman's strategy to turn Riyadh into a global business hub, the move is the latest step.