Arab News
Arab news, Sat, May 10, 2025 | Dhu al-Qadah 12, 1446
‘A revolution in the way people travel’ — Saudi aviation industry soaring with sky-high ambition
Saudi Arabia:
Increased technology integration and
greater connectivity over the next five years will see Saudi Arabia cement its
position as a global aviation hub, experts have told Arab News.
In a comprehensive assessment of the Kingdom’s air
sector, analysts and industry insiders have set out how investment in
infrastructure, the roll out of new airlines, and a focus on sustainability will
see Saudi Arabia reach its Vision 2030 goals.
The Kingdom is targeting handling 330 million
passengers annually across 250 destinations by the end of the decade, as well
as transporting 4.5 million tonnes of cargo.
The industry laid the groundwork for this growth
in 2024, achieving record-breaking results with the 94 million passengers
transported representing a 15 percent year-on-year increase, alongside a 10
percent rise in flight activity, and a 52 percent boost in air cargo, to reach
nearly 1 million tonnes.
The International Air Transport Association’s
Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi told
Arab News that the Kingdom is preparing for the aviation sector to play an even
bigger role in its future.
“Over the next five years, we expect continued
development in digitalization and connectivity, and for Saudi Arabia to be in an
even stronger position as a global hub, driving economic and social growth for
the Kingdom,” he said.
Al-Awadhi also emphasized that the nation’s
regulatory reforms and commitment to sustainability will be key factors in
attracting international airline partnerships and investment.
He added: “GACA’s (the General Authority of Civil
Aviation) revision of its charging scheme, to make Saudi airports more
competitive in the region, is a positive step, now and for the future. As is its
establishment of an independent economic regulatory framework.”
The top official noted that Saudi Arabia is the
first country in the Middle East and North Africa to do this, and encouraged
others to follow.
Riyadh Air — a portal to the Kingdom
A key development in the sector is the highly
anticipated debut of Riyadh Air, Saudi Arabia’s new full-service airline, set to
launch in 2025.
The company has made significant strides in
preparation for its release, including major aircraft acquisitions, strategic
alliances, and technological investments.
Mark Bothorn, principal of innovation practice at
Arthur D. Little Middle East, highlighted that the launch of Riyadh Air is a
“watershed moment for Saudi Arabia’s aviation sector — an event of this scale
and significance happens perhaps once a decade.”
He added: “As a full-service national flag
carrier, Riyadh Air will not only enhance domestic connectivity but also
position the Kingdom’s capital as a major global aviation hub.”
Bothorn further anticipated that the new
national carrier would serve as an ambassador for Saudi Arabia, embodying the
nation’s vision through cutting-edge design, unparalleled guest experience, and
world-class connectivity. “The way the world perceives Riyadh will, in many
ways, be shaped by the experiences this airline delivers,” he added.
The airline has ordered 60 Airbus A321neo jets,
with plans for additional wide-body aircraft this year. It has secured
agreements with Singapore Airlines, Air China, and Delta Air Lines to enhance
interline connectivity, codeshare operations, and frequent flyer benefits.
Riyadh Air is collaborating with Artefact to
develop an advanced data analytics platform that aims to offer
hyper-personalized services and seamless digital-first experiences. Its initial
routes will connect Saudi Arabia to major cities in Europe, North America, and
Asia, enhancing its international connectivity.
The Kingdom’s existing airlines are also
undergoing significant transformations to cater to the growing demand and
enhance international reach.
Saudia has placed a historic $19 billion
order for 105 Airbus A320neo aircraft to expand its fleet, set for delivery
starting in 2026.
Additionally, the airline is enhancing its
maintenance and repair capabilities through a partnership with Air France-KLM.
Flyadeal, Saudia’s budget airline, aims to double its fleet to 100 aircraft by
2030, offering affordable travel options across domestic and regional routes.
Flynas, the region’s top low-cost airline,
secured a 280-aircraft deal, including Airbus A320neo and A330neo models, to
support its aggressive expansion strategy. The airline also introduced new
routes connecting Saudi Arabia to Africa and Europe.
Bothorn commented on the impact of
heightened market contenders, saying: “Increased competition is always a
catalyst for innovation and improvement, and in Saudi Arabia’s aviation sector,
it will lead to two transformative outcomes.”
First, enhanced connectivity will strengthen
Riyadh’s position as a global business hub by providing seamless access to
international markets through more flights and improved routing.
Second, Riyadh Air, unburdened by legacy systems,
has the potential to redefine air travel, setting new benchmarks in passenger
experience and efficiency, according to Bothorn.
Airport infrastructure soars
To handle the volume that new airlines will be
attracting, Saudi Arabia is investing heavily in airport infrastructure.
King Salman International Airport in Riyadh is set
to become one of the world’s largest airports, with ongoing developments led by
global firms including Foster & Partners and Jacobs Engineering. The airport
will increase its capacity to accommodate 120 million passengers by 2030.
King Khalid International Airport’s expansion
includes upgrades to Terminals 1 and 2, increasing capacity to 14 million
passengers annually. Saudia’s deal with German aerospace company Lilium NV will
introduce 50 electric vertical takeoff and landing jets, making it the first
airline in the region to invest in sustainable air travel.
Bothorn emphasized the impact of airport
infrastructure advancements. “For many travelers, the airport experience is
often the most stressful part of a journey — navigating terminals, dealing with
security bottlenecks, and enduring long waits.”
He added: “A seamless integration between the
airport and airlines can dramatically transform this, replacing frustration with
efficiency and even moments of delight.”
Bothorn envisioned airports that
proactively anticipate passenger needs, with real-time updates enabling
travelers to relax in lounges or dine rather than wait at gates.
Investment turbines spin
Saudi Arabia’s business aviation sector is
thriving, driven by an influx of high-net-worth individuals and economic
expansion. The sector, valued at $1.2 billion in 2023, is expected to grow at an
annual rate of 8.88 percent from 2025 to 2029.
GACA is further boosting this sector by
removing restrictions on foreign on-demand charter flights, allowing
international operators to enter the domestic private aviation market starting
in May.
Infrastructure and transportation developments
outlined in the 2025 Saudi budget report reinforce these aviation ambitions. The
gross domestic product of the transportation and logistics sector grew by 6.4
percent in the first half of 2024.
Total investment contracts signed in this sector
amounted to over SR200 billion ($53.3 billion). Saudi Arabia has also
strengthened its global presence by securing key positions in international
aviation organizations, including hosting the UNCTAD Global Supply Chain Forum
in 2026 and chairing the Executive Council of the Arab Civil Aviation
Organization.
To enhance aviation services, the Kingdom has
looked to implement modern and eco-friendly transportation initiatives during
the Hajj season, including self-driving taxis, smart delivery vehicles, and
increased aircraft seat capacity for pilgrims. Performance-based operations and
maintenance contracts have been executed to enhance asset management efficiency.
Plans for 2025 include SR42 billion allocated for
the infrastructure and transportation sector, which will witness the launch of
several travel lounges across international airports, licensing new national air
carriers, and expanding public bus networks to improve intercity and regional
connectivity.
Al-Awadhi of IATA further elaborated on the
nation’s role in shaping global aviation policies. “Many countries in the region
look to Saudi Arabia for developing their aviation sectors, so the Kingdom plays
an important role in shaping regional policies.”
Recent work revamping economic regulation related
to consumer protection, safety and security has been followed by other countries
in the region, according to the top official.
“We’re stronger as an industry when standards are
aligned, not just regionally but globally,” he added.
Private jets and Saudi Arabia’s aviation roadmap
Saudi Arabia has made developing the private
aviation market a key part of its roadmap for the sector, with the charter and
corporate jet segments being supported by infrastructure upgrades such as six
new general aviation airports.
The sector’s growth aligns with Vision 2030’s
diversification efforts, particularly in tourism and entertainment, with
destinations like AlUla and the Red Sea International Airport, capable of
handling 1 million tourists
annually, driving demand.
During 2024’s Future Aviation Forum, GACA unveiled
a roadmap aimed at increasing the general aviation sector’s contribution to GDP,
targeting a tenfold growth to reach $2 billion by 2030. The plan encompassed the
business aircraft sector, including private charter flights and corporate
aviation.
Sustainability is another focus, with GACA’s plan
targeting net-zero emissions by 2060 through initiatives such as sustainable
aviation fuel and AI-driven efficiency optimizations. However, challenges,
including limited sustainable aviation fuel supply, remain.
Sustainable skies ahead
IATA’s Al-Awadhi highlighted the recent
deal between Red Sea Global and daa International to introduce sustainable
aviation fuel at Red Sea International Airport as “a positive step for Saudi
Arabia and the region” when it comes to developing a more ecologically friendly
sector.
The 35 percent SAF blend, supplied by Arabian
Petroleum Supply Co., reduces aircraft emissions by up to 35 percent per flight,
aligning with RSG’s broader sustainability efforts, including 400 megawatt-peak
of solar installations and plans to plant 50 million mangroves by 2030.
The airport, operational from 2023 and with
international flights beginning in 2024, serves the growing Red Sea destination,
set to feature 50 resorts by 2030.
The next five years will bring transformative
benefits for travelers flying to and from Saudi Arabia. Expanded airline
networks will improve connectivity, reduce layovers, and increase travel
convenience.
The rise of low-cost carriers like flyadeal and
flynas means more budget-friendly flights for domestic and international routes.
AI-driven services, biometric security checks, and world-class airport
infrastructure will streamline travel, making it more efficient and comfortable.
“Expect nothing short of a revolution in the way
people travel,” Bothorn said. He explained that long queues at security and
immigration, endless gate waits, and the anxiety of either rushing through the
airport or arriving far too early “will become relics of the past.” He projected
air travel to become more intuitive and enjoyable.
Al-Awadhi added that Saudi Arabia is investing
heavily in digital processing of passengers and integrating latest technologies
at airports.
“We can certainly expect better passenger
experience and customer service,” he said, adding: “Airlines are also updating
their fleets so travelers will be flying on the latest aircrafts, enjoying what
new technologies have to offer. Improved connectivity will provide travelers
with more choices, enhancing the overall customer experience.”
Investments in eVTOL aircraft and eco-friendly
practices signal a shift toward greener aviation. Saudi Arabia is undergoing a
historic transformation in its aviation sector, with massive investments,
strategic expansions, and cutting-edge innovations that will redefine the travel
experience.
By 2030, the Kingdom aims to be a premier global
aviation hub, offering world-class connectivity, seamless air travel, and
state-of-the-art airport facilities.