Inbizzy, Dammam, Saudi Arabia – UAE-based airline Air Arabia is leading a multinational consortium that has won the bid to operate a new low-cost airline based at King Fahd International Airport in Dammam, Saudi Arabia. The initiative is part of the Kingdom’s broader strategy to boost air connectivity and strengthen its aviation sector in line with Vision 2030.
According to an official announcement by the Saudi General Authority of Civil Aviation (GACA) via its social media platform X, the consortium also includes Egypt’s Nesma Airlines and Jeddah-based Kun Investments Holding.
2030 Goals: 45 Aircraft, 81 Routes, and 10 Million Passengers Per Year
The new airline is expected to begin operations from Dammam and aims to achieve the following milestones by 2030:
- Operate a fleet of 45 aircraft,
- Serve 24 domestic and 57 international routes,
- Carry up to 10 million passengers annually,
- Create 2,400 direct jobs in Saudi Arabia.
Backed by the Saudi Government
Saudi Minister of Transport and Logistics Services, Saleh Al Jasser, welcomed the launch of the new airline and stated: “The establishment of a new low‑cost airline in Dammam further builds Saudi Arabia’s position as the world’s biggest aviation growth story, with the proposals received reflecting strong global investment in Saudi aviation,” and he also stated “This award will drive further growth in support of Vision 2030 and the National Transport and Logistics Strategy.”
The project results from a competitive bidding process initiated by GACA that was open to both domestic and international airline operators. One of the main requirements was that the airline must have majority Saudi ownership.
In a separate statement GACA President Abdulaziz Al Duailej said the new carrier: “Aims to enhance the competitiveness of the aviation sector, expand travel options, and increase passenger numbers.”
He added that the initiative is “crucial for supporting the growth of the economy and tourism in the Kingdom’s Eastern Province.”
Opportunities and Competition in Saudi’s Aviation Market
Air Arabia’s entry adds another player to Saudi Arabia’s rapidly evolving aviation landscape. The domestic and regional markets are already served by flynas, flyadeal, Saudia, and the newly formed Riyadh Air.
Saj Ahmad, chief analyst at StrategicAero Research, commented:
“Air Arabia would be stepping into a very competitive Saudi landscape.”
He noted that Air Arabia’s advantage lies in its strong regional hub network, which could support its expansion across the Kingdom.
“Longer term, the evolving Saudi market will change and it’ll be interesting to see if Air Arabia elects to spread beyond Dammam into more competitive cities like Jeddah and Riyadh and set up camp there.”
Dammam Airport Infrastructure Projects Worth $427 Million
As part of its national logistics strategy, Saudi Arabia also unveiled the Dammam Airports Strategy on the same day. The Kingdom will invest 1.6 billion Saudi riyals (approx. $427 million) across 77 integrated infrastructure projects, including:
- Expanding King Fahd International Airport’s capacity to 19.3 million passengers annually by 2030,
- Increasing air cargo capacity to over 600,000 tonnes per year,
- Boosting aircraft movement capacity to 77 per hour,
- Raising total annual passenger capacity to 32 million.
Saudi Arabia’s Vision to Become a Global Travel Hub
The initiative is part of Saudi Arabia’s goal to become a global logistics and tourism powerhouse. As the largest economy in the Middle East, the Kingdom has invested over $800 billion in its tourism sector and aims to attract 150 million annual visitors by 2030.
In 2023, Saudi Arabia also launched Riyadh Air, a fully state-owned national airline under the Public Investment Fund (PIF), which is expected to begin commercial flights in the fourth quarter of 2025.
Image by KSAGACA
