UAE: Air Arabia bid to launch Saudi low-cost airline at Damam, promoted Vision 2030 Gols World News
TL; Dr.
Air arab Located in the UAE, a new Saudi will lead a low -cost airline.- The airline will be based in Dammam and will fly to 81 destinations.
- It is part of widespread aviation push under Saudi Arabia’s Vision 2030.
On July 20, 2025, Saudi Arabia’s General Authority of Civil Aviation (GACA) announced that a coalition with Saudi firms Kun Investment Holding and NESMA group led by Air Arabia has obtained a license to operate a new national low -cost airline located at King Fahad International Airport in Damam.The new airline will launch with a fleet of 45 aircraft, flying to 57 international destinations by adding 24 cities in Saudi Arabia. By 2030, the carrier aims to serve around 10 million passengers every year and make more than 2,400 new jobs.According to Saudi officials, the airline will help promote competition, increase seat capacity and provide more economical travel options to the public, especially in the eastern region of the country.
Its role about Air Arab and Saudi Arabia
Air Arab, Sharjah, is a low -cost airline located in UAE. Launched in 2003, it was the first budget carrier in the Middle East. Today, it operates a fleet of about 60 Airbus A320s and flies up to more than 170 destinations in 30+ countries including cities in the Middle East, North Africa, Asia and Europe. The airline is known for offering cheap fare and simple, no-frills service.Until now, Air Arabia’s presence in Saudi Arabia was limited to international flights, connecting cities such as Riyadh, Jeddah, and Dammam to its broad network. For example, Dammam was just a destination.He is changing. With the launch of the new Saudi low-cost airline, the airline becomes home base in the Kingdom. This is the first time Air Arabia is co-operating a Saudi-Lyshens carrier, and it turns the demom into a full hub, not just a stop on a route. For passengers in the eastern province, it means more direct flights, better reach and lower fare.
A close look at the alliance
The license was honored to a three -member consortium:
- Air Arab (UAE): One of the top low -cost carriers of the region with widespread experience in budget operations and regional connectivity.
- Kun Investment Holding (Saudi): A Saudi firm that brings capital and strategic local participation.
- Nesma Group (Saudi): A diverse Saudi business with an aviation and experience in infrastructure through its former airline operations.
Unlike the foreign players working independently in the Saudi sky, it is a Saudi-Lishens airline supported by a regional partnership, combining international experience with local roots.
Why Dammam? A strategic change
Dammam has not traditionally been the center of Saudi aviation. Most of the development focuses on Riyadh and Jeddah. This step indicates a change. Based on the new airline in Dammam, the alliance is exploiting in an area that is economically important but is often outlined by direct air links. the plan includes:
- Improvement in connectivity for east province residents
- Extension of domestic and regional options
- Supporting tourism and trade trip inside and outside Damam
It also helps in reducing pressure on large airports and supports the target of creating several air travel hubs in Saudi Arabia, not only one or two major centers.
Main details:
- Fleet size: 45 aircraft
- network: 24 domestic and 57 international destinations
- Passenger target: 10 million annually by ~ 2030
- Jobs made: More than 2,400
- main focus: Improve connectivity in the eastern region, expand the capacity of the seat, and offer more economical fare
How it fits in vision 2030
Saudi Arabia Vision is putting a big bet on aviation as part of Vision 2030, its long -term strategy to diversify the economy beyond oil. The purpose of the country is:
- Draw $ 100 billion to aviation investment
- Serve more than 330 million passengers annually
- Connect 250+ global destinations
- Promote aviation contribution to GDP
- Liberate airports and airline operations to allow new entry
This new airline aligns with that effort. It is not meant to compete with major brands such as Riyadh Air, which focuses on long -lasting routes. Instead, it adds depth, fills a difference in inexpensive, short and middle-ranging travel and expands access to more passengers.
What does this mean: positive results
- More Travel Options: Passengers get more destinations, especially from Dammam
- Lower rent: A low cost model means increase in competition and high pricing flexibility
- Increase in job: More than 2,400 direct jobs are required
- Network expansion: 81 destinations including major domestic and regional cities
- Regional Boost: Supports development in eastern province
Officials of the Ministry of Transport and Logistics Services of Saudi Arabia have indicated that the new airline is expected to increase market competition and provide more options to passengers, supporting the country’s broad aviation strategy.
questions to ask
- Q1. Who will run a new airline in Saudi Arabia?
The airline will be operated by an alliance led by the UAE Air Arab, with a Saudi -based Kun Investment Holding and NESMA Group Partners. The license was given by GACA.
- Q2. Why was Dammam chosen as the base?
Damam provides unused capacity. It is a growing economic zone with room to expand air traffic. Keeping the airline there supports regional development and reduces pressure on Riyadh and Jeddah.
- Q3. How will this airline be different from others like Flidel or Riyadh air?
Flidel focuses on domestic routes under Saudi. Riyadh Air targeted the long-hall premium journey. This new airline provides low cost, regional connectivity, especially from East Saudi Arabia.
