Air Arabia wins green light for new Saudi budget airline targeting 10m passengers
UAE carrier expected to create more than 2,400 direct jobs across the Kingdom
SHARJAH/DAMMAM – Saudi Arabia is moving closer to adding a new player to its fast-growing aviation market, with an Air Arabia-led consortium receiving regulatory approval to launch a national low-cost carrier in Dammam.
The General Authority of Civil Aviation (GACA) has granted the consortium an Air Operator Certificate (AOC), clearing a key regulatory milestone for the new airline.
Based at King Fahd International Airport, the carrier is planned as part of the Kingdom’s wider drive to expand connectivity and strengthen its position as a global aviation and logistics hub.
Regulatory green light
GACA granted the AOC in the presence of Eng. Saleh bin Nasser Al-Jasser, Minister of Transport and Logistic Services and Chairman of GACA, and Abdulaziz bin Abdullah Al-Duailej, President of GACA.
The certificate was issued after the airline successfully completed the required technical and regulatory procedures under the executive regulations of Saudi Arabia’s Civil Aviation Law. These included requirements covering safety, security and operational quality.
Captain Sulaiman bin Saleh Almuhaimedi, GACA’s Executive Vice President of Aviation Safety and Environmental Sustainability, described the approval as a significant step towards the objectives of Saudi Arabia’s aviation strategy.
He said the launch of Air Arabia’s operations from Dammam would increase competition and improve performance in the air transport market, while supporting trade and tourism in the Eastern Province and creating new local employment opportunities.
The regulator also highlighted the AOC as part of its role in overseeing the air transport sector and developing an investment environment that supports the expansion of aviation services.
81 destinations
The new carrier is expected to serve 24 domestic and 57 international destinations, giving it a planned network of 81 destinations.
GACA said the airline is expected to carry approximately 10 million passengers annually by 2030, supporting the targets of Saudi Arabia’s Aviation Programme.
The Dammam base will also strengthen connectivity in the Eastern Province, an important commercial and economic region with established links to the wider Gulf and international markets.
The new airline is expected to bring additional capacity and competition to Saudi Arabia’s low-cost aviation sector as the Kingdom continues expanding its air transport infrastructure and international connectivity.
Saudi-led consortium
The project dates back to a GACA competition announced in July 2025, when the consortium led by Air Arabia Group was selected as the winning bidder to establish and operate the new national low-cost airline.
The consortium comprises Air Arabia Group, Nesma Group and KUN Holding Company, with the winning bid based on majority Saudi ownership.
The project is expected to create more than 2,400 direct jobs, while contributing to GDP, tourism growth and improved air connectivity in the Eastern Province.