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A consortium led by Air Arabia is set to establish a new low-cost airline in Saudi Arabia. The Kingdom has concluded its tender process aimed at strengthening the aviation sector by launching a new budget carrier. The General Authority of Civil Aviation (GACA) announced that a consortium composed of UAE-based Air Arabia, Kun Investment Holding, and Nesma Holding has won the right to operate the new airline.
The new carrier will be based at King Fahd International Airport (DMM) in Dammam. The consortium will operate a fleet of 45 aircraft and aims to serve 24 domestic and 57 international destinations. By 2030, the airline is expected to carry 10 million passengers annually and create more than 2,400 new jobs in the sector.
In its statement dated July 20, 2025, GACA said, “This initiative will contribute to the economic development of Dammam and the Eastern Province and boost tourism.” The project is expected to support Saudi Arabia’s Vision 2030 and the National Transport and Logistics Strategy by diversifying the economy and helping the region become a major aviation hub.
Air Arabia Operates Flights to Over 170 Destinations
Air Arabia, the largest low-cost carrier in the Middle East and North Africa, currently operates flights to more than 170 destinations from its hubs in Sharjah, Egypt, Morocco, and Jordan. In managing the new airline, Air Arabia will bring its expertise in budget air travel, fleet operations, and passenger services.
Adel Al Ali, Group CEO of Air Arabia, said, “We are proud to have been entrusted by GACA to establish the new Dammam-based national low-cost carrier. This marks a significant milestone that reinforces our commitment to the Kingdom’s aviation sector growth.”