Saudi Arabia’s flynas Middle East’s fastest-growing airline from 2019-2024: report

Saudi Arabia’s flynas Middle East’s fastest-growing airline from 2019-2024: report
Flynas aims to operate over 160 aircraft by 2030. Shutterstock
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Updated 02 May 2025
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Saudi Arabia’s flynas Middle East’s fastest-growing airline from 2019-2024: report

Saudi Arabia’s flynas Middle East’s fastest-growing airline from 2019-2024: report

RIYADH: Saudi low-cost carrier flynas’s capacity increased by 63 percent from 2019 to 2024, making it the fastest-growing airline in the Middle East region, according to an analysis.

In its latest report, UK-headquartered global travel data provider OAG said that flynas was closely followed by the UAE’s flydubai, which witnessed a capacity rise of 55 percent from 2019 to 2024.

The analysis revealed that both carriers operated nearly 14.4 million departing seats each during the period, with flynas edging ahead by 25,000 travelers.

The strong capacity growth of flynas aligns with Saudi Arabia’s national goal to establish itself as a global tourist and business destination. The Kingdom aims to attract over 150 million visitors by the end of this decade.

“The Middle East region’s strategic position as a global hub, coupled with the dynamic expansion of both low-cost and network carriers, is driving unprecedented opportunities. This vibrant market is setting the stage for future advancements in aviation technology and passenger experience,” said Filip Filipov, chief operating officer of OAG.

Although flydubai and flynas’ networks are similar, the latter benefits from a large domestic market within Saudi Arabia, allowing it to operate a more diverse route network, OAG added.

In February, flynas announced that it expects to receive more than 100 Airbus aircraft over the next five years, part of its broader deal for 280 Airbus jets.

The airline aims to operate over 160 aircraft by 2030, with its 280-plane order worth more than SR161 billion ($43 billion), making it the largest holder of single-aisle aircraft purchase orders in the Middle East.

Commenting on the growth of flynas in recent years, Paolo Carlomagno, partner at Arthur D. Little, said that competitive pricing and top-notch quality have played a crucial role in the airlines’ rising popularity among travelers. 

“In the past five years, flynas has delivered stellar growth thanks to several factors — endogenous and exogenous. A well-planned and executed network strategy and efficient seat capacity increases, primarily driven by fleet expansion with the Airbus A320Neo, which offers lower operating costs,” said Carlomagno. 

He added: “Flynas has also expertly managed the difficult trade-off between pricing and quality of service and delivered strong operational performance over the past five years.” 

The Arthur D. Little official added that the growth of flynas as a leading air carrier globally could help Saudi Arabia achieve its national tourism goals as outlined in the Vision 2030 initiative. 

He further highlighted that flynas has a significant opportunity to expand, as the market penetration of low-cost carriers in the Kingdom is comparatively low compared to other leading markets. 

“LCC market penetration in Saudi Arabia is still significantly lower than some other major aviation markets such as South East Asia and so there is still enormous potential for them to grow further. The ‘democratization’ air travel trend and the connectivity with ‘secondary’ routes will continue to boost demand in the Kingdom,” said Carlomagno. 

Middle East aviation market’s outlook

In its latest report, OAG stated that the Middle East’s aviation market has grown by 5 percent since 2019, making it the world’s second-fastest-growing region after South Asia, which saw a 12 percent increase over the same period.

The analysis further said that this increase was fueled by a robust combination of low-cost carrier growth and legacy carrier capacity.

“In recent years, the Middle East has established a leading position in developing new markets and connecting the region to the rest of the world with non-stop services to all continents and key cities,” said OAG.

It added: “The region has a highly competitive environment with best-in-class airlines operating in all segments, alongside ambitious plans for new aircraft and routes. This makes the Middle East a real hot spot in the aviation industry.”

The report highlighted that the Middle East is the sixth-largest region in the world based on available capacity, with 270 million one-way seats in 2024, placing the area ahead of Eastern Europe and behind South Asia.

According to OAG, airlines operating in the Middle East region witnessed an international travel capacity expansion of 8.9 percent by the end of 2024 compared to 2019, the second-strongest pandemic recovery, only next to South Asia, whose capacity grew by 11 percent during the same period.

Affirming the growth of the aviation sector in the region, a recent report by the International Air Transport Association revealed that airlines operating in the Middle East witnessed a 3.3 percent increase in passenger demand growth in February compared to the same month in 2024.

IATA added that the total capacity of Middle Eastern flights also rose by 1.3 percent year on year in February.

In March, another report by Oliver Wyman also highlighted the growth of the aviation sector in the region. It underscored that the fleet of commercial airlines in the Middle East is expected to grow at a compound annual growth rate of 5.1 percent from 2025 to 2035 to reach 2,557 aircraft.

The consultant management firm added that this significant growth in the region is almost double the annual global growth rate, which is projected at 2.8 percent during the same period.

According to the latest OAG report, low-cost carriers accounted for 29 percent of the capacity in the Middle East region in 2024, having more than doubled in the last decade from just 13 percent of capacity in 2014.

Globally, low-cost carriers operated 34 percent of the capacity last year.

Competition intensifies in Middle East market

According to OAG, two Middle Eastern carriers have gained prominence worldwide. Emirates and Qatar Airways are the only regional airlines to feature in 2024’s Top 20 Global Airlines for Capacity and the Top 10 Global Airlines by available seat kilometers — a measure of an airline's passenger carrying capacity.

The report revealed that Emirates is now the 14th largest carrier globally by seat capacity and ranks 4th in terms of available seat kilometers.

On the other hand, Qatar Airways has experienced dramatic growth over the last decade, as it developed Doha into a global connecting point and moved from being the 36th largest airline globally 10 years ago to the 19th in 2024.




A Qatar Airways sign at a check-in area. Shutterstock

Regarding available seat kilometers, Qatar Airways also advanced from 17th in 2019 to the sixth largest globally in 2024.

The capacity of Qatar Airways increased by 18 percent between 2019 and 2024.

The capacity of Emirates dropped by 7 percent in 2024 compared to 2019, while Saudia’s capacity declined by 11 percent during the same period.

“Competition across the region’s leading airlines is increasing, with as much investment in product as network expansion,” said OAG.

The study further stated that the Middle East market is likely to experience significant disruptions in the future as additional airline capacity is added through various airline business models and the creation of new airlines in the region.

“The launch of Riyadh Air is likely to be one of the most interesting disruptions in the Middle East market in the coming years, alongside the planned growth of rival Saudi airline Saudia and its move to a new base at Jeddah,” said OAG.

It added: “Although neither of these airlines is likely to challenge Emirates’ traffic in the short term, they will create a new competitive landscape as Saudi carriers vie for both transfer traffic and inbound tourism.”




Riyadh Air is scheduled to launch passenger flights by the end of 2025. Shutterstock

According to OAG, the key feature of the aviation sector in the Middle East, and particularly the bigger markets of the UAE, Qatar, and Saudi Arabia, is the depth of network that they offer to travelers.

The report added that non-stop flights from the region’s major hub airports reach every continent, with only a handful of international markets remaining unserved directly.

Markets in South America, including Lima and Santiago, fall just outside the operational reach of the Middle East region.

OAG further said that Doha to Auckland is currently the longest non-stop route operated from the Middle East by Qatar Airways, followed by Emirates’ Dubai to Auckland route.

“In time, with ever-increasing aircraft ranges, it is likely these destinations will provide new markets for the network carriers to increase their revenues further,” the report added.

It concluded: “For the traveler, a seemingly ever-expanding choice of destinations to reach, along with increased competition, is likely to result in airfares remaining competitive throughout the region.”


Closing Bell: Saudi main index rises to close at 10,956

Closing Bell: Saudi main index rises to close at 10,956
Updated 27 July 2025
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Closing Bell: Saudi main index rises to close at 10,956

Closing Bell: Saudi main index rises to close at 10,956

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 10.42 points, or 0.10 percent, to close at 10,956.22.

Total trading turnover of the benchmark index reached SR3.46 billion ($924 million), with 145 stocks advancing and 97 declining.

Similarly, the Kingdom’s parallel market Nomu climbed 92.76 points, or 0.34 percent, to close at 26,991.01, as 47 stocks advanced while 39 retreated.

The MSCI Tadawul Index also posted gains, adding 1.89 points, or 0.13 percent, to finish at 1,409.96.

The top performer of the day was Tourism Enterprise Co., with its share price surging 9.91 percent to close at SR1.22.

Other notable gainers included BAAN Holding Group Co., which rose 9.63 percent to SR2.39, and Raydan Food Co., which advanced 6.67 percent to SR14.24.

On the downside, Buruj Cooperative Insurance Co. recorded the biggest loss, falling 4.11 percent to SR18.20. 

Fawaz Abdulaziz Alhokair Co. dropped 3.03 percent to SR29.46, while Saudia Dairy and Foodstuff Co. declined 2.84 percent to SR266.40.

In corporate disclosures, the National Agricultural Development Co. reported its consolidated financial results for the six-month period ending June 30. According to a Tadawul statement, the company posted a net profit of SR218.6 million, up 2.5 percent year on year. 

The increase was attributed to higher revenue and treasury income, along with changes in cost of sales, selling and marketing expenses, impairment losses, financing costs, and other income and expenses.

NADEC shares ended the session at SR21.02, down 0.81 percent.

Meanwhile, Yanbu National Petrochemical Co. announced a net profit of SR58.2 million for the first half of the year, marking an 82 percent year-on-year decline.

The drop was primarily due to lower average selling prices across all products and higher input costs, despite increased sales volumes and stable operational performance.

Yanbu shares rose 2.88 percent, closing at SR29.42.

Sabic Agri-Nutrients Co. also released its interim financial results, reporting a net profit of SR2.04 billion for the first half of the year, reflecting a 32.2 percent increase compared to the same period last year. 

The growth was driven by a 22 percent rise in sales, along with an increase in share of results from associates and joint ventures.

However, the rise was partially offset by higher costs of goods sold, mainly due to increased feedstock prices.

SABIC Agri-Nutrients Co. shares closed at SR117, up 2.15 percent.


GCC economy grows 1.5% to $588bn in Q4 2024 on non-oil expansion

GCC economy grows 1.5% to $588bn in Q4 2024 on non-oil expansion
Updated 27 July 2025
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GCC economy grows 1.5% to $588bn in Q4 2024 on non-oil expansion

GCC economy grows 1.5% to $588bn in Q4 2024 on non-oil expansion
  • Qatar recorded the highest real GDP growth at 4.5%
  • UAE followed at 3.6% and Saudi Arabia at 2.8%

RIYADH: The Gulf Cooperation Council’s economy grew 1.5 percent year on year in the fourth quarter of 2024, reaching $587.8 billion, driven by a surge in non-oil activity, official data showed. 

According to the GCC Statistical Center, the increase from $579 billion in the fourth quarter of 2023 highlights the region’s ongoing shift toward diversification, with non-oil sectors contributing 77.9 percent of total output, while oil accounted for 22.1 percent. 

Among non-oil sectors, manufacturing contributed 12.5 percent, wholesale and retail trade 9.9 percent, construction 8.3 percent, and public administration and defense 7.5 percent. Finance and insurance made up 7 percent, real estate 5.7 percent, and other activities a combined 27 percent. 

The region’s economic shift is driven by national reform plans, including Saudi Arabia’s Vision 2030, the UAE’s Economic Vision 2030, Oman’s Vision 2040, and Qatar’s National Vision 2030, aimed at reducing reliance on oil by expanding sectors like tourism, logistics, finance, and technology, and boosting private sector and foreign investment. 

The statistical center said: “This report on the quarterly GDP estimates in the GCC countries is issued based on the data made available by the member states, with a reference of May 2025.” 

At the real GDP level, the GCC economy grew 2.4 percent in the fourth quarter of 2024, with non-oil GDP expanding by 3.7 percent, while oil GDP contracted by 0.9 percent, reflecting voluntary OPEC+ production cuts. 

Among member states, Qatar recorded the highest real GDP growth at 4.5 percent, followed by the UAE at 3.6 percent and Saudi Arabia at 2.8 percent, the report showed. 

The region also maintained stable price levels, with overall inflation averaging 2.1 percent across the bloc during the quarter. Qatar and Oman registered the lowest inflation rates at 1.1 percent and 1.5 percent, respectively, while Bahrain recorded the highest at 3.3 percent. 

In its latest update, the Institute of Chartered Accountants in England and Wales, in collaboration with Oxford Economics, raised its 2025 GCC growth forecast to 4.4 percent, up from a prior estimate of 4 percent, citing stronger oil output and resilient non-oil sector activity. 

The International Monetary Fund projects the GCC economy to expand by 3 percent in 2025, led by Saudi Arabia and the UAE, and supported by sustained infrastructure investment and policy reforms. 


Jeddah port receives LNG-powered MV BYD HEFEI 

Jeddah port receives LNG-powered MV BYD HEFEI 
Updated 27 July 2025
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Jeddah port receives LNG-powered MV BYD HEFEI 

Jeddah port receives LNG-powered MV BYD HEFEI 

RIYADH: Jeddah Islamic Port has received the motor vessel BYD HEFEI, a dual-fuel roll-on/roll-off carrier with a 7,000-unit capacity for vehicles and heavy equipment. 

The vessel’s arrival at the Red Sea Gateway Terminal reflects the port’s readiness to handle next-generation maritime traffic and supports the Kingdom’s broader push to enhance supply chain efficiency under Vision 2030. 

Operated at the RSGT — Saudi Arabia’s first Build-Operate-Transfer terminal, partly owned by the Public Investment Fund and global logistics firm DP World — the MV BYD HEFEI highlights the Kingdom’s ongoing efforts to modernize terminals and advance sustainability initiatives.

The ship is powered by eco-friendly dual-fuel technology and is designed to meet the latest environmental and operational efficiency standards. 

“This reflects the port’s readiness to accommodate various types of vessels and highlights its advanced operational capabilities,” according to the Saudi Ports Authority, also known as Mawani. 

Strategically positioned near global shipping lanes, Jeddah Islamic Port handles over 65 percent of Saudi Arabia’s seaborne imports, playing a central role in the Kingdom’s National Transport and Logistics Strategy. 

The integration of liquefied natural gas-powered vessels aligns with the NTLS goals and the Saudi Green Initiative, which aim to reduce emissions and promote clean energy in the transportation sector. 

As ports across the UAE, Oman, and major global hubs like Singapore and Rotterdam invest in similar capabilities, Jeddah’s adoption of dual-fuel infrastructure bolsters its regional competitiveness and positions it firmly in the worldwide shift toward sustainable maritime logistics. 

As part of its strategic efforts to strengthen maritime connectivity and diversify trade routes, Mawani has significantly expanded shipping services at Jeddah Islamic Port in 2025. 

Among the newly added services is FRS1, operated by CSTAR LINE, which connects Jeddah to Chinese ports — Ningbo, Shanghai, and Nansha — as well as Aqaba in Jordan and Ain Sokhna in Egypt, with a capacity of up to 2,000 twenty-foot equivalent units. 

In addition, the LRX service by CMA CGM began operations in July, linking Jeddah with key ports in the Levant and Eastern Mediterranean, including Latakia, Iskenderun, Mersin, and Beirut, with a TEU capacity of 2,826. 

Earlier in the year, the IM2 service, jointly operated by Emirates Line and Wan Hai, was introduced, connecting Jeddah to Mundra, Alexandria, and Mersin, with capacity for 2,800 TEUs. 

Sea Lead launched its RESIN service in June 2025, facilitating trade between Jeddah and Nhava Sheva, Ain Sokhna, Djibouti, and Jebel Ali, with a handling capacity of 1,000 TEUs. 

Meanwhile, CMA CGM’s MEDEX service now connects Jeddah to 12 ports across the Middle East, South Asia, and Europe, including Abu Dhabi, Karachi, Colombo, and Piraeus, as well as Malta, Genoa, Fos, Barcelona, and Valencia. 

These service expansions underscore Jeddah Islamic Port’s role as a growing transshipment and trade hub. 

In 2024, the terminal, considered the busiest on the Red Sea and a critical gateway for Saudi Arabia’s trade, handled 5.58 million containers, marking a 12.6 percent year-over-year increase and positioning it 32nd globally by container volume. 


Saudi Arabia sees record 144% rise in new mining exploration licenses in H1

Saudi Arabia sees record 144% rise in new mining exploration licenses in H1
Updated 27 July 2025
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Saudi Arabia sees record 144% rise in new mining exploration licenses in H1

Saudi Arabia sees record 144% rise in new mining exploration licenses in H1
  • Total volume of investments in licenses exceeds SR134 million
  • Total number of mining and small-mine exploitation licenses currently active stands at 239

RIYADH: Saudi Arabia issued a record number of new mining exploration licenses in the first half of 2025, marking a 144 percent year-on-year rise, official data showed. 

A total of 22 licenses were issued during the period, up from just nine in the same period last year, reflecting growing investor interest and the government’s push to build a more competitive and attractive mining sector, according to a statement from the Ministry of Industry and Mineral Resources. 

The rise aligns with the rapid growth of the Kingdom’s mining industry, a central pillar in its Vision 2030 diversification strategy. Saudi Arabia aims to increase the sector’s contribution to gross domestic product from $17 billion to $75 billion by 2035. The effort is backed by plans to accelerate exploration and development of the Kingdom’s estimated mineral wealth, valued at over SR9.4 trillion ($2.5 trillion). 

“The official spokesman for the Ministry of Industry and Mineral Resources, Jarrah bin Mohammed Al-Jarrah, explained that the number of companies investing in the new mining exploitation licenses issued during the first half of this year reached 23 mining companies, including 16 companies obtaining mining licenses for the first time,” the ministry said.

It added: “The total volume of investments in these licenses exceeds SR134 million, and they cover an area of 47 sq. km.” 

The ministry’s spokesperson said the projects covered by these licenses are expected to produce approximately 7.86 million tonnes annually of various mineral ores, including salt, clay, silica sand, low-grade iron ore, feldspar, and gypsum. 

Al-Jarrah also said the total number of mining and small-mine exploitation licenses currently active in the Kingdom stands at 239. These include 32 Category A licenses for strategic minerals such as gold, copper, phosphate, and bauxite, and 207 Category B licenses for industrial minerals, including silica sand, gypsum, limestone, salt, and clay. 

Earlier in July, Vice Minister of Industry and Mineral Resources Khalid Al-Mudaifer told Asharq Business that the Kingdom’s mining reforms have helped attract $32 billion in investments across projects involving iron, phosphate, aluminum, and copper. He added that this accounts for nearly one-third of Saudi Arabia’s target to attract $100 billion in mining investments by 2030. 

The vice minister said mineral exploration spending in the Kingdom has quadrupled since 2018, reaching $100 per sq. km, with an annual growth rate of 32 percent, significantly above the global average of 6 to 8 percent. 

Al-Mudaifer also said mineral exploration spending in the Kingdom has quadrupled since 2018, now reaching $100 per sq. km — an annual growth rate of 32 percent, significantly outpacing the global average of 6 to 8 percent. 


Saudi Arabia taps French bank to expand local debt market

Saudi Arabia taps French bank to expand local debt market
Updated 27 July 2025
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Saudi Arabia taps French bank to expand local debt market

Saudi Arabia taps French bank to expand local debt market

RIYADH: The Saudi Ministry of Finance and the National Debt Management Center have signed an agreement appointing France’s Societe Generale as a primary dealer for the Kingdom’s local debt instruments, according to an official statement.

Societe Generale will join five other international institutions already operating as primary dealers, namely BNP Paribas, Citigroup, and Goldman Sachs, as well as J.P. Morgan, and Standard Chartered Bank.

As part of ongoing efforts to deepen and diversify its domestic debt market under Vision 2030, the Ministry of Finance and the NDMC have taken new steps to strengthen the role of international and local institutions in supporting sukuk and bond issuance.

“This agreement fits within the Financial Sector Development Program strategy as a step toward achieving the objectives of Saudi Vision 2030 by strengthening financial sector institutions and advancing the financial market,” NDMC stated.

The NDMC stated that the deal reaffirms its role in enhancing access to local debt markets by diversifying the investor base. This approach aims to ensure sustainable access to the secondary market and support its growth.

“It is noteworthy that applications for subscription in the primary market for the government's local debt instruments are submitted to the NDMC through the appointed primary dealers on a scheduled monthly basis where these dealers receive the applications submitted by investors,” the statement said.

The French bank will also be added to the list of 10 local institutions participating in the program, including Saudi National Bank, Saudi Awwal Bank, and AlJazira Bank, as well as Alinma Bank, AlRajhi Bank, Albilad Capital, AlJazira Capital, AlRajhi Capital, Derayah Financial Co., and Saudi Fransi Capital.

The Kingdom’s sukuk market has witnessed significant growth in recent years, underpinned by its strategic role in the Kingdom’s Vision 2030 economic diversification plans. In the first quarter of 2025, corporate bond and sukuk issuance more than doubled to $37 billion, up from $15.5 billion in the same period of 2020.

Saudi Arabia accounted for more than 60 percent of all sukuk and bond issuance across the Gulf Cooperation Council during that period, according to the Kuwait Financial Center, also known as Markaz.

The NDMC surpassed the $1 billion threshold with its May sukuk issuance, raising SR4.08 billion ($1.08 billion)—a 9.09 percent increase from April and a 54.5 percent rise compared to March’s SR2.64 billion.

In June, the NDMC raised SR2.355 billion, marking a decline from May but demonstrating typical monthly funding fluctuations.

The July issuance rebounded sharply to SR5.02 billion, an increase of 113.6 percent month on month. That issuance was split into tranches maturing in 2029, 2032, 2036, and 2039.

According to S&P Global, the Kingdom’s domestic debt markets are expected to expand further amid Vision 2030 reforms, with sovereign and corporate issuance at 20.7 percent of gross domestic product and corporate debt alone rising from 1.9 percent in 2020 to 3.4  percent in early 2025.