
A new chapter is set to take flight in Saudi Arabia’s aviation landscape with the announcement of a Dammam-based low-cost airline, led by UAE’s Air Arabia in partnership with Saudi firms Kun Investment Holding and Nesma Group. Far from just adding another budget carrier to an already bustling market, this initiative is a strategic move deeply aligned with Saudi Arabia’s Vision 2030 economic transformation plan, aiming to diversify the economy, boost tourism, and stimulate regional development.
Dammam, home to King Fahd International Airport Saudi Arabia’s third-largest and a crucial gateway for the Eastern Province, will serve as the airline’s headquarters. This marks a significant pivot from the usual Riyadh and Jeddah focus, placing Dammam at the heart of expanded connectivity efforts. The new carrier is designed to unlock the airport’s untapped potential as a hub linking underserved Tier-2 and Tier-3 cities like Abha, Jazan, and Tabuk with the Gulf capitals Doha, Manama, Kuwait City, and Sharjah, enhancing both domestic and regional access.
The airline is set for an ambitious start with a fleet of 45 aircraft, targeting to serve 81 destinations (24 domestic and 57 international), and plans to transport up to 10 million passengers annually by 2030. This expansion is expected to create over 2,400 direct jobs, boosting the local economy and increasing travel options with affordable fares and greater seat capacity.
Saudi Arabia’s domestic air travel demand has surged past 62 million passengers in 2023, fueled by growing religious tourism and the rise of mega leisure projects like NEOM and AlUla. The new airline aims to cater to these evolving travel patterns by providing competitive, budget-friendly flights that stimulate latent demand in ways the existing full-service carriers do not.
This move comes amid a robust aviation ecosystem supported by heavy investments over SR50 billion into airport modernization and privatization initiatives that tackle infrastructure bottlenecks, making the environment ripe for low-cost carrier growth. With two-thirds of Saudi Arabia’s 35 million population under 35 and rising consumer preferences toward budget travel, the regional aviation market is expanding rather than cannibalizing existing players like Flynas and flyadeal.
The Air Arabia-led consortium, combining regional low-cost expertise and local governance, symbolizes a mature approach to Gulf aviation partnerships. It contrasts with the less successful ventures by foreign carriers lacking regional rooting, emphasizing the importance of cost discipline, fleet strategy, and market alignment to thrive in the Kingdom.
In essence, this new Saudi low-cost airline launching from Dammam is a calculated strategic lever not a gamble to energize the Eastern Province, strengthen regional connectivity, and underpin the Kingdom’s economic diversification through tourism and transport. Its success will hinge on local responsiveness, disciplined operations, and the ability to integrate seamlessly with Saudi Arabia’s broader national vision.
This pioneering airline, expected to begin flights by late 2026, is more than a carrier it is a bold statement on Saudi Arabia’s evolving aviation ambitions and a beacon for the future of budget travel in the region.