Air Arabia-led consortium gets green light for new Saudi budget airline in Dammam

Sharjah: An Air Arabia-led consortium has received regulatory approval to launch a new national low-cost airline in Saudi Arabia, with King Fahd International Airport in Dammam as its base, the Sharjah-based headline announced on Monday.

Saudi Arabia's General Authority of Civil Aviation (GACA) granted the consortium its Air Operator Certificate (AOC) on Monday, September 14, after the new carrier completed the required safety, security and operational checks.

The new airline is expected to serve 24 domestic and 57 international destinations, giving it a network of 81 destinations.

GACA said the carrier is expected to handle around 10 million passengers a year by 2030.

Dammam base

The airline is being launched as part of Saudi Arabia's wider aviation strategy to expand air connectivity and strengthen the Kingdom's position as a global logistics and aviation hub.

Captain Sulaiman bin Saleh Almuhaimedi, GACA's executive vice-president of aviation safety and environmental sustainability, said the approval marked an important step in that strategy.

“The launch of Air Arabia’s operations from Dammam will contribute to enhancing competition and improving performance in the air transport market,” Almuhaimedi said.

He added that the airline would support trade and tourism in Saudi Arabia's Eastern Province while creating new local employment opportunities.

For UAE travellers, Dammam's location makes the new carrier particularly relevant to the wider Gulf aviation market, with the Eastern Province already closely connected to neighbouring Gulf states.

81 destinations

The new carrier will operate a mix of domestic and international routes, with GACA confirming plans to serve 24 destinations within Saudi Arabia and 57 international destinations.

The regulator said the airline's expansion is expected to strengthen air connectivity and support the objectives of Saudi Arabia's Aviation Programme.

The carrier is targeting approximately 10 million passengers annually by 2030.

GACA said the AOC was issued only after the airline completed the technical and regulatory stages required under the executive regulations of Saudi Arabia's Civil Aviation Law.

Those requirements included checks covering safety, security and operational quality.

Air Arabia bid

The new airline traces back to a GACA competition announced in July 2025.

The winning consortium comprises Air Arabia Group, Nesma Group and KUN Holding Company. GACA said the consortium submitted the best bid and that the new airline would have majority Saudi ownership.

The project is expected to create more than 2,400 direct jobs, while contributing to GDP, tourism and connectivity in the Eastern Province.

Almuhaimedi said the AOC also reflected GACA's role in regulating the country's air transport sector and creating an environment designed to attract investment.

The certificate now clears the way for the new Dammam-based low-cost carrier to begin its operations, adding another player to Saudi Arabia's rapidly expanding aviation market.