In a move aligned with Saudi Vision 2030, the Kingdom has approved a major new low-cost airline headquartered at King Fahd International Airport in Dammam. The airline will be operated by a consortium led by UAE’s Air Arabia alongside Saudi partners Nesma Group and Kun Investment Holding—a first-of-its-kind Saudi-licensed low-cost carrier from the Eastern Province .
🛫 Airline Overview
- The carrier will launch with a fleet of 45 aircraft, expanding to serve 24 domestic and 57 international destinations .
- Annual passenger traffic is projected to reach 10 million by 2030 .
- The venture is expected to generate over 2,400 direct jobs, strengthening the Eastern Province’s role in the national aviation sector .
📌 Strategic Rationale
King Fahd International Airport—one of the world’s largest by land area—has so far remained underdeveloped compared to hubs in Riyadh and Jeddah. This initiative seeks to position Dammam as a vibrant aviation hub offering affordable, well-connected travel options for domestic and international fliers .
As part of the broader National Transport and Logistics Strategy, the airline supports Saudi Arabia’s ambition to handle 330 million passengers and 4.5 million tons of air cargo annually by the end of the decade .
🤝 Consortium Composition
- Air Arabia, with experience operating low-cost carriers across the region, will lead airline operations and route planning.
- Nesma Group and Kun Investment Holding bring local investment strength and domestic infrastructure expertise .
This model mirrors Air Arabia’s existing JV airline partnerships in Morocco, Egypt, Armenia, and Pakistan and represents its first Saudi-licensed enterprise
.📅 Timeline & Operations
- Planning and licensing progressed rapidly following the July 2025 GACA announcement.
- Flight operations are expected to begin in late 2026, starting with an initial fleet and phased route expansions toward the 2030 targets .
🌍 Growth and Connectivity Impact
The new airline will enhance regional connectivity with improved access to Gulf, South Asia, North Africa, and European destinations—serving cities like Dubai, Karachi, Istanbul, and Cairo
It also directly addresses demand trends: King Fahd Airport handled around 12 million passengers in 2024, with rising traffic necessitating additional capacity and competition in the local market .
🎯 What It Means
- Travelers: Greater choice and affordability on routes to/from the Eastern Province and beyond.
- Local economy: Boost from job creation, infrastructure spend (~SR1.6 billion package), and tourism flow Saudi aviation sector: Dammam emerges as a critical node in a national network expanding beyond traditional hubs.
