TAV and local partner Al Rajhi Group have signed an agreement with the Civil Aviation Authority of Saudi Arabia (GACA) to construct a new terminal in Yanbu after which it will operate the airport for a period of 30 years.
Located by the Red Sea, Yanbu is a significant industrial and port city.
It will become the second Saudi Arabia gateway to be operated by TAV, following Medinah Airport.
TAV Airports president and CEO, Sani Şener, says: “TAV has become one of the world's highly-preferred brands thanks to the know-how acquired in airport construction and operation business.
"TAV has its signature in the capital city airports of six countries in the Gulf Region, which has become the most challenging market of the world lately.
"Our success in the Medinah Airport project, which was the first airport privatisation project in Saudi Arabia, opened new doors in this country. We are glad to reach an agreement with GACA regarding the expansion and operation of the Yanbu Airport located on the west side of the country.
"Yanbu is an important industrial hub hosting the oil refineries and the world's second busiest port. Located by the Red Sea, Yanbu also has a serious tourism potential, particularly thanks to its underwater treasures.
"On the other hand, its proximity to both Mecca and Medina places Yanbu a significant importance in terms of Hajj and Umrah traffic. We will endeavour to be a true representative of the country and realize the potential of Yanbu Airport."
Expected to handle around 1.2 million passengers in 2017, Yanbu Airport's capacity will increase to 3mppa upon completion of the new terminal.
TAV has operated Madinah Airport since 2012 and has operations at Jeddah, Riyadh and Dammam airports in Saudi Arabia thanks to its service companies.