FedEx secures license to operate as foreign air carrier in Saudi Arabia

Move strengthens Riyadh’s ambition to become a global logistics hub under Vision 2030

Last updated:
Justin Varghese, Your Money Editor
2 MIN READ
A FedEx cargo plane at Stansted Airport in Essex, UK.
A FedEx cargo plane at Stansted Airport in Essex, UK.
Supplied

Dubai: The General Authority of Civil Aviation (GACA) has granted FedEx an economic license to operate as a foreign air carrier in Saudi Arabia, advancing the Kingdom’s efforts to build a major logistics hub.

The announcement was made during the inauguration of FedEx Saudi Arabia’s new head office in Riyadh. The event was attended by Minister of Transport and Logistics Services, the President of GACA Abdulaziz Al-Duailej, and senior aviation officials.

Expanding air cargo capacity

The license enables FedEx to operate 24 dedicated cargo flights per month via King Khalid International Airport in Riyadh. From September 2, FedEx has begun running direct flights to Riyadh with onward connectivity to GCC countries, enhancing cross-border trade routes.

Saudi Arabia’s Transport and Logistics Strategy targets handling 4.5 million tonnes of cargo annually by 2030. FedEx’s expanded presence is seen as a key contributor to that goal.

“GACA’s award of an economic license to FedEx will provide consumers and businesses with faster, more convenient logistics solutions, enabling the Kingdom’s broader economic growth as a leading global logistics hub,” said Awad Al-Sulami, GACA’s Executive Vice President for Economic Policies and Logistics Services.

Record aviation growth

Saudi aviation has seen strong growth in 2025. Between January and June, the sector recorded:

  • 463,800 flights, up 4% year-on-year

  • 575,000 tons of air cargo moved

  • 66.7 million passengers carried

Regulatory reforms

The license award follows regulatory changes introduced in November 2023, which opened ground handling and air cargo services to greater competition. These reforms were supported by infrastructure investments, including the Riyadh Integrated Special Logistics Zone designed to attract international operators.

GACA said FedEx’s decision to expand reflects “confidence in the competitiveness of the Kingdom’s aviation sector, transparency of regulations, and the ambition of Vision 2030.”

Justin Varghese
Justin VargheseYour Money Editor
Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.
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