The Eastern Province has seen a remarkable surge in air traffic, with over 12 million passengers handled at Dammam airport in 2024—an increase of 15% over the previous year—and a single-day record of more than 50,000 travelers. The launch of this new airline coincides with a 1.6 billion Saudi riyal (approximately 426 million USD) investment allocated to 77 enhancement projects at King Fahd, Al-Ahsa, and Al-Qaisumah airports, as well as a rebranding of Dammam Airports Co.
This project not only seeks to relieve congestion and diversify air transport in the Eastern region but also aims to promote more effective competition against other travel alternatives. The airline will offer more affordable options that connect traditionally underserved areas, reinforcing Saudi Arabia’s position as a strategic hub in regional aviation.
The new airline emerges alongside the launch of Riyadh Air, another major initiative within the Saudi aviation ecosystem. Founded by the Public Investment Fund, Riyadh Air is set to begin operations in 2025 from the capital, offering over 100 global destinations with a fleet of Boeing 787-9 Dreamliners, blending cutting-edge technology with design inspired by Bedouin heritage.
This move complements the national strategy to establish Saudi Arabia as a global logistics and aviation leader. The Kingdom aims to handle 330 million passengers annually and transport 4.5 million tons of air cargo by 2030. The Dammam-based airline and the expansion of airport infrastructure are aligned with this goal, focusing on enhancing services, attracting tourism, and driving economic diversification.
The low-cost model also seeks to improve regional competitiveness. By increasing the availability of domestic and international flights at lower fares, the airline will help energize the sector, open new routes, and offer accessible travel options for both local and international passengers. From its roots in the UAE, Air Arabia has successfully replicated its model in various countries and now adapts it to the Saudi market in collaboration with local partners.
Looking ahead, the consortium faces challenges such as staffing pilots and cabin crew and negotiating routes with foreign airports. However, institutional support and regional investments provide a strong foundation for its launch and future growth. Additionally, the airline is expected to generate synergies with landmark tourism projects such as The Red Sea Project and other Vision 2030 developments, by facilitating access to emerging destinations across the Kingdom.
The approval of this low-cost airline in Dammam represents a significant move toward a more inclusive, competitive, and strategically aligned aviation sector in Saudi Arabia. By combining international expertise, local investment, and long-term vision, the project reinforces the nation’s broader efforts to transform its air transport infrastructure and solidify its role as a global aviation hub.
