
A consortium led by UAE-based Air Arabia has won the license to establish and operate Saudi Arabia’s newest national low-cost carrier, headquartered in Dammam. The consortium, which includes Saudi partners Nesma Group and KUN Holding, was awarded the project by the General Authority of Civil Aviation (GACA) and will operate out of King Fahd International Airport.
While the airline’s official name has yet to be announced, it is widely expected to carry the Air Arabia Saudi Arabia brand, following the company’s pattern of regional expansions such as Air Arabia Abu Dhabi and Air Arabia Egypt.
According to the initial roadmap, the airline aims to serve 24 domestic and 57 international destinations with a fleet of 45 aircraft by 2030. The project targets reaching 10 million passengers, boosting tourism, and supporting the economic development of Saudi Arabia’s Eastern Province.
Adel Al Ali, Group CEO of Air Arabia, hailed the achievement as a milestone for regional aviation: “As a leading low-cost airline operator, this marks a key milestone reaffirming our commitment to support the Kingdom’s aviation growth. With our economic model and regional expertise, we aim to deliver a reliable, affordable travel experience for passengers.”
The announcement comes at a dynamic time for the region’s aviation market. Just days ago, Wizz Air announced its exit from Abu Dhabi after five years, sparking a reshuffle among low-cost carriers. Air Arabia responded swiftly, revealing plans to increase its Abu Dhabi capacity by 40% in 2025. Meanwhile, Etihad Airways added seven new destinations—previously served by Wizz Air—including key cities in Central Asia, Eastern Europe, and Saudi Arabia.
Saudi Arabia’s aviation sector is riding a wave of rapid expansion. According to GACA’s Air Traffic 2024 Report, passenger numbers surged by 15% last year to 128 million, split between 59 million domestic and 69 million international travelers.
Adding to the country’s growing aviation reputation, travel tech firm AirHelp recently ranked Dammam’s King Fahd International Airport as the 10th best airport globally, with four Saudi airports making it into the world’s top 12.
The launch of the new Air Arabia-backed airline is expected to further cement Saudi Arabia’s position as a major aviation and tourism hub, aligning with its broader Vision 2030 goals of economic diversification and infrastructure development.