 
Author: Bandar Al-Yafie, CFO, Saudi Air Navigation Services (SANS)
Saudi Arabia is undertaking one of the most ambitious aviation expansion plans in the world. As the Kingdom develops Vision 2030 and prepares to host events that will attract millions more visitors, the airspace above it is becoming more strategically important. Saudi Air Navigation Services (SANS), the leading air navigation service provider in the MENA region, sits at the center of that growth, and the standards we uphold go beyond keeping planes flying safely. Our investment is to help the wider aviation ecosystem become cleaner, more efficient and more resilient.
For an air navigation services provider, sustainability goes beyond environmental disclosures. It applies to all aspects of how a company is led, how decisions are made, how resources are used and how value is created over time. In all these dimensions, our objective remains the same: to deliver long-term value, with commitment.
Governance is built on transparency
Sustainability at SANS is embedded within the business strategy. In 2024, sustainability was officially adopted as the company’s sixth strategic pillar, reinforcing its position as a top priority at board level. Our sustainability management model is organized across three levels – a Sustainability Steering Committee for strategic direction, a cross-functional ESG Committee, and a Sustainability Community for organization-wide engagement.
Our management approach is reinforced by internationally recognized agencies. Our Enterprise Risk Management framework is compliant with ISO 31000 and COSO Internal Controls. The financial report is prepared in accordance with IFRS. This year, we extended the same discipline to our sustainability disclosures with the publication of our first ESG report developed with reference to the Global Reporting Initiative (GRI) Standards, providing investors, regulators and partners with an internationally comparable view of our ESG performance.
A dividend that supports the future
Long-term financial planning and proper allocation of funds are key factors for strategic and sustainable growth. At SANS, financial planning provides a framework for assessing priorities, managing risk, and directing resources in areas that strengthen long-term sustainability and sector readiness. With a multi-year financial perspective, investment decisions are aligned with operational priorities, national development goals and ESG considerations. This approach has already led directly to action, most clearly in the creation of two SANS subsidiaries: NERA, which distributes SANS aviation technology to enable new technologies and services for aviation customers throughout MENA and beyond, and the Saudi Academy of Civil Aviation (SACA), which is building the special national talent the sector will need to grow.
Sustainability is officially recognized as the sixth strategic pillar of the company
Fund allocation decisions are evaluated against a broader set of criteria than financial returns alone. We assess each investment for its contribution to safety, efficiency and environmental performance. Our Comprehensive Capital Investment Plan will present a systematic policy framework for treasury and investment decisions, securing risk-adjusted returns while preserving capital needed to fund priorities and ensure business continuity over time. Early results show strong progress, with investment returns exceeding targets. This strengthened SANS’s ability to finance long-term sustainability programs internally, while avoiding the need for external debt.
Functions are designed for efficiency
Sustainable finance is also a matter of greater efficiency. Over the past year, we have strengthened our operations by continuously improving the invoicing cycle, timely supplier payment processes and supplier satisfaction. These efforts were supported by efficient collection management, efficient cash flow and careful monitoring of overdue balances. Together, they have improved working capital management, strengthened financial credibility, and strengthened the operational discipline needed to support sustainable long-term growth.
Behind these results sits a strong credit risk management framework, supported by enhanced service level agreements with key partners, digital automation in all billing and customer engagement, and continuous improvements in receivables management. Together these programs strengthen cash flow and reduce credit risk. The same behavior is reflected in our compliance, control and quality results. Most notably, SANS has been honored with the Silver King Abdulaziz Quality Award, an independent guarantee of financial conduct and operational quality where the disclosure of reliable integrity ultimately depends. The result is a financial function that stays ahead of regulation rather than reacting to it.
Digital transformation
Reliable sustainability results depend on reliable data. This goal guides our digital agenda within finance, where we have developed a connected technology environment to strengthen accuracy, control, and decision-making. At the foundation, our core ERP and comprehensive data management framework provide a reliable source of financial information for the entire organization.
Building on this foundation, our Enterprise Performance Management (EPM) planning and budgeting platform went live this year, replacing fragmented spreadsheets with a controlled and consistent planning environment. In parallel, our customer relationship management platform uses the same digital approach to payments and customer engagement.
In addition, Power BI dashboards that include financial performance, different KPIs, and revenue insights provide managers with timely and consistent visibility across the business, supporting faster and more informed decision-making. We also support the implementation of a Financial Action Plan, which provides systematic oversight of financial management processes across the company. Together, these improvements do more than improve efficiency. By reducing manual effort, eliminating duplicate reporting and improving data accuracy across the board, they reduce the performance footprint of our financial operations while equipping us to track sustainability KPIs with accuracy, trace ESG data back to its source and disclose it with confidence.
A purchase that delivers value
At SANS, local content is central to our shopping experience. Through our purchasing decisions, we aim to support local manufacturers, develop national capabilities, increase the participation of Saudi manufacturers, and maintain added economic value within the Kingdom. SANS has made strong progress in this area with the Domestic Content Program, which has supported engagement with suppliers, internal awareness, improved visibility across mandatory categories and the creation of a qualified list of domestic manufacturers of mandatory categories. Beyond local content, provider satisfaction is considered a key outcome. We use a supplier segmentation framework integrated into our ERP, supported by a formal supplier feedback survey that captures supplier needs, improvement opportunities and challenges.
These fundamentals have translated into strong procurement performance. In 2025, our Supply Chain team was awarded the internationally recognized CIPS Procurement Excellence Award. Structured negotiations delivered savings comfortably ahead of target, while the registered supplier base increased competition, strengthening supply chain resilience and creating wider opportunities for Saudi SMEs.
Where strategy meets sky
For an air navigation services provider, one of the key elements of sustainability is the design of the airspace itself. By 2025, SANS managed more than one million flights safely over an area of more than two million square kilometers. Growth and reliability have moved forward together, supported by continuous investment in airport development, technology and infrastructure. Finance plays a key role in this process by evaluating major CAPEX decisions, supporting prioritization, and helping to ensure that investments are directed to programs that create long-term operational and environmental value.
The wider impact is seen in how the atmosphere is modified to reduce carbon emissions. With the Saudi Future Airspace Concept, Free Route Airspace, Performance-based Navigation, continuous take-off and landing operations, and reduced separation at major airports, SANS helps reduce fuel burn, aircraft inefficiencies, and holding times. This operational development directly supports the Civil Aviation Environmental Sustainability Program (CAESP) – the national environmental road map of the State for aviation, which comes directly from Vision 2030, where SANS acts as the main operational arm of the seven environmental pillars of this program. Under this framework, the national commitment is to reduce aviation emissions by 30 percent by 2032, supported by SANS’ goal of obtaining ISO 14001 certification by 2026.
Growth, safety, regulation and ESG are mutually supportive. Strong governance protects security. Efficiency helps reduce carbon emissions. Disciplined financial management supports the technology and infrastructure that enable both.
