Saudi Arabia to Launch Two New Airlines as Part of Vision 2030 Plan
Saudi Arabia is pushing forward with an ambitious aviation expansion plan that will add two more airlines to its growing fleet of national carriers, according to revelations from a senior government tourism official.
Speaking at the Cityscape Global real estate conference earlier this month, Fahd Hamidaddin, CEO of the Saudi Tourism Authority, disclosed plans that will bring Saudi Arabia’s total number of airlines to seven. The announcement reinforces the Kingdom’s commitment to its Vision 2030 economic diversification program, which aims to reduce dependence on oil revenues while transforming the nation into a major tourism destination.
“They also say a successful national airline builds a destination, and they are yet to start. There is Riyadh Air, Saudia, and three more air carriers to be announced,” Hamidaddin stated, according to Arabian Gulf Business Insight reporting from the event.
The first of these new carriers has already been confirmed. In July 2025, the General Authority of Civil Aviation (GACA) announced that a consortium led by UAE-based Air Arabia, along with Kun Investment Holding and Nesma Holding, had been selected to establish a new low-cost airline headquartered at King Fahd International Airport in Dammam. This carrier represents a strategic expansion of budget travel options for both domestic and international passengers.
The Dammam-based airline has outlined aggressive growth targets, planning to operate a 45-aircraft fleet by 2030. The carrier will serve an extensive network of 24 domestic destinations and 57 international airports, significantly expanding connectivity throughout the Kingdom and beyond.
“We are proud to have been selected by GACA to launch a new national low-cost airline headquartered in Dammam. As a leading low-cost operator in the region, this milestone reaffirms our commitment to supporting the growth and development of the Kingdom’s aviation sector,” said Adel Al Ali, Group CEO of Air Arabia.
While details about the second and third new carriers remain limited, industry reports suggest one airline will be specifically oriented toward religious tourism. This focus would align with Saudi Arabia’s position as home to Islam’s two holiest cities, Mecca and Medina, which attract millions of pilgrims annually for Hajj and Umrah.
The aviation expansion comes as Riyadh Air, the Kingdom’s flagship new airline, prepares to launch commercial operations later this year. At last week’s Dubai Airshow, Riyadh Air confirmed an order for 120 CFM International LEAP-1A engines to power 60 Airbus A321neo family aircraft that were ordered in 2024, demonstrating the scale of investment in the sector.
The multi-airline strategy reflects a sophisticated approach to market segmentation, with carriers positioned to serve different passenger demographics—from premium international travelers on Riyadh Air and Saudia to budget-conscious passengers on flynas, flyadeal, and the forthcoming Dammam carrier, plus specialized religious tourism services.
This aviation expansion represents one of the most significant transformations in Middle Eastern air travel infrastructure and positions Saudi Arabia to compete directly with established Gulf aviation hubs in Dubai, Abu Dhabi, and Doha. The success of this ambitious plan will be crucial to achieving Vision 2030’s broader economic objectives.
Source ID: SRCE-2025-1764102495228-913