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Saudi aviation sector enters a new era

In March, Saudi Arabia announced the launch of its second national airline, Riyadh Air, owned by the Public Investment Fund. It is expected to add $20 billion to the non-oil GDP and create over 200,000 jobs. (Supplied)
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Updated 12 August 2023
Rebecca Anne Proctor
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Saudi aviation sector enters a new era

  • Transitioning from ‘a period of recovery to sustained and upward growth,’ says GACA official
Updated 12 August 2023
Rebecca Anne Proctor

RIYADH: As the world emerges from the shadows of the COVID-19 pandemic, Saudi Arabia has started reaping the fruit of its efforts to wean its economy off of oil by increasing its focus on its travel and tourism sector.

The Kingdom’s aviation sector is witnessing rapid growth which many analysts say is not just due to large investments in airlines but a result of the ongoing socio-economic transformation process that began with the launch of Vision 2030 in 2016.

One of the several measures taken to boost the sector includes the launch of an e-visa service in 2019 ensuring easy access to millions of potential tourists eager to explore the art, culture, cuisine, archeological wonders, and natural beauty of the Arabian Peninsula.

“2023 is becoming a year in which Saudi aviation (industry) has moved beyond recovery (mode) and (entered) into an era of unprecedented milestones and achievements,” Mohammed Alkhuraisi, executive vice president of strategy and business intelligence at the General Authority of Civil Aviation, told Arab News. 

“In the first half of 2023, Saudi Arabia’s air traffic witnessed significant growth. This reflects a clear transition from a period of recovery to sustained and upward growth in the sector.”

The Kingdom’s fast-evolving aviation sector is reflective of its ambitions to emerge as a global travel destination rivaling its counterparts in the Gulf Cooperation Council. 




Saudi Arabia is creating unprecedented opportunities for global aviation through the Saudi Aviation Strategy. (Supplied)

It is also making its mark as an emerging business hub and center for culture and tourism drawing in visitors from all across the globe.

“The Kingdom of Saudi Arabia is focused on Vision 2030, which is the country’s grandiose and ambitious economic diversification agenda,” Giorgio Cafiero, an analyst for Gulf State Analytics told Arab News.

“Some of the key pillars of Vision 2030 include tourism, non-oil trade, logistics, and transportation,” Cafiero said. 

“Within this context, Saudi Arabia is trying to bring many tourists from many parts of the world into the country, while also making the King Salman International Airport, which is supposed to be completed by 2030, a major hub that can not only compete with the UAE and Qatar’s successful airports, and even surpass them. Saudi Arabia has the resources and the will to make this airport in Riyadh a major success. If the Saudis are successful on this front, the Kingdom’s tourism industry will stand to gain in many ways.”

Alkhuraisi said the Kingdom is better connected than ever before, with the total number of destinations connected to the country reaching 127, which is over 50 percent of the 2030 target set in the Saudi Aviation Strategy. 

HIGHLIGHTS

• The national flag carrier, Saudia, plans to launch 25 new routes in 2023.

• The number of flights to AlUla increased by 64 percent between April and June.

• Saudi Arabia launched a free 96-hour stopover visa and services to facilitate the UK, the US, and Schengen visas holders.

• The Kingdom also announced its plans to replace one of its busiest airports, Riyadh’s King Khalid Airport, with King Salman International Airport.

“Saudi Arabia is creating unprecedented opportunities for global aviation through the Saudi Aviation Strategy, which will triple passenger numbers to 330 million, extend connectivity to more than 250 destinations, and increase air freight capacity to more than 4.5 million tons per annum by 2030,” Alkhuraisi added. 

“The Saudi Aviation Strategy targets reflect the scale of investment and growth occurring right now in the Kingdom’s aviation sector.”

The GACA official said: “This year we have already witnessed the Saudi Aviation Strategy deliver real results for the Kingdom, including Saudi Arabia jumping 14 places on IATA’s 2023 International Air Connectivity Index (the highest-ranking increase of any aviation market), launching of a new national airline, Riyadh Air, and issuing a new license for an airline based in Dammam.”

Further accelerating travel and easy access to the Kingdom, this year the government announced the launch of a free 96-hour stopover visa and services to facilitate the UK, the US, and Schengen visas holders, as well as permanent residents of the UK, the US, and any EU country to obtain tourist e-visas through a simple online portal. 

2023 is becoming a year in which Saudi aviation (industry) has moved beyond recovery (mode) and (entered) into an era of unprecedented milestones and achievements.

Mohammed Alkhuraisi, executive vice president of strategy and business intelligence at the General Authority of Civil Aviation

Ali Shihabi, a Saudi analyst and writer, told Arab News: “Aviation is a driver of growth as Dubai showed us. The more air connections you develop, the more traffic, tourism, and business come.” 

AlUla, a key tourist destination of the Kingdom, is also attracting foreign and domestic tourists. According to the Royal Commission of AlUla, the total number of flights to the historic destination increased by 64 percent between April and June, while the total number of passengers increased by 74 percent. 

The surge in the sector could be gauged through the fact that until March Wizz Air, a multinational airline, operated on 17 routes in the Kingdom and added 9 more destinations in April. 

The national flag carrier, Saudia, plans to launch 25 new routes in 2023. According to official data, it welcomed 14 million guests, with 76,000 daily passengers. 

“During the first half of 2023, Saudia showcased its crucial role in supporting tourism, business, Hajj, and Umrah sectors through strategic partnerships,” Capt. Ibrahim Koshy, CEO of Saudia, told Arab News. 

The Kingdom has also announced its plans to replace one of its busiest airports, Riyadh’s King Khalid Airport, which has a capacity of approximately 25 million passengers per year, with King Salman International Airport. This means that the Saudi capital will be able to host 120 million passengers per year by 2030. Estimated to be among the biggest in the world, the new airport, while still smaller in size than Dammam’s King Fahd International Airport, is expected to add an additional $7.18 billion to the Kingdom’s non-oil gross domestic product. It seeks to compete with other top GCC airports.

In March, Saudi Arabia announced the launch of its second national airline, Riyadh Air, owned by the Public Investment Fund. It is expected to add $20 billion to the non-oil GDP and create over 200,000 jobs. Its goal is to serve over 100 destinations by 2030 and connect the Kingdom’s capital to major international cities. 

During the first half of 2023, Saudia showcased its crucial role in supporting tourism, business, Hajj, and Umrah sectors through strategic partnerships.

Ibrahim Koshy, CEO of Saudia

“Riyadh Air was launched to shape the future of air travel, drawing on authentic Saudi hospitality and the latest digital technologies to offer an exceptional guest experience,” Riyadh Air CEO Tony Douglas told Arab News. “Riyadh Air will shape the future of air travel and empower Saudi Arabia’s aviation ecosystem. The airline will serve as a catalyst for the National Transport and Logistics Strategy and help realize its aviation sector goals by optimizing the Kingdom’s strategic location and connecting the three continents of Asia, Africa, and Europe.”

Further expansion for Saudi’s aviation sector comes with the soon-to-be-opened solar-powered Red Sea International Airport, in Hanak, Tabuk. Part of Red Sea Global, the multi-project luxury and sustainable tourism project under development and wholly owned by the PIF, it will open in the fourth quarter of this year and begin with domestic flights and offer international flights in 2024. 

“Saudi Arabia, through its Vision 2030, has opened the country to the world, welcoming international tourists, staging major sports events, including Formula 1, golf, boxing, tennis, and e-racing, as well as putting on major musical and entertainment events, Mdlbeast, for example, holding major business exhibitions (FII, Global Mining Forum, etc.), and staging unprecedented political meetings,” Amr Khashoggi, a Saudi economist and board chairman at Amkest Group, told Arab News. 

Khashoggi also said he believed that a large number of people are coming to the Kingdom seeking medical treatment.

“Saudi Arabia has now become a global travel destination for many reasons,” he added.

Topics: Saudi aviation Saudi General Authority of Civil Aviation (GACA) Saudi Arabia

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Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts

Updated 22 June 2025
Reem Walid
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Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts

Updated 22 June 2025
Reem Walid

RIYADH: Saudi Arabia and Kuwait have signed a memorandum of understanding to bolster cooperation in the fight against money laundering and the financing of terrorism, reinforcing regional efforts to strengthen financial security.

The agreement, inked between Saudi Arabia’s General Department of Financial Investigations and Kuwait’s Financial Intelligence Unit, was finalized on the sidelines of the second meeting of the Gulf Cooperation Council Committee of Financial Intelligence Units, held in Kuwait, the Kuwait News Agency reported.

The MoU aims to enhance intelligence sharing and operational coordination between the two nations. It is expected to significantly improve the effectiveness of the region’s financial crime prevention frameworks, aligning with international standards and bolstering joint mechanisms among GCC financial intelligence units.

The signing follows a virtual workshop hosted in March by the National Center for Non-Profit Sector Development, which focused on preventing money laundering and terrorist financing within non-profit organizations, including charitable groups and foundations.

The agreement also reflects broader economic ties between the two Gulf neighbors. In February, Kuwait’s exports to Saudi Arabia reached SR137 million ($36.5 million), up 19.6 percent from the previous year, according to data from the Observatory of Economic Complexity.

Officials from both countries highlighted the MoU’s role in advancing national capabilities, fostering regional integration, and aligning with best practices in financial intelligence and compliance.

The renewed cooperation comes as Saudi Arabia continues to encourage Kuwaiti investment in its mining and industrial sectors.

In April, Minister of Industry and Mineral Resources Bandar Alkhorayef met with a delegation of Kuwaiti businessmen during an official visit to Kuwait, emphasizing untapped opportunities in the Kingdom’s mining industry.

Alkhorayef underscored the sector’s importance to Saudi Vision 2030, which aims to position the Kingdom as a global industrial and mining hub. He cited estimates valuing Saudi mineral resources at over SR9.3 trillion.

Combatting money laundering remains a national priority for Saudi Arabia, which has implemented a comprehensive legal and regulatory framework to protect the integrity of its financial system and prevent illicit funding activities, including terrorism financing.

Topics: money laundering Financial crimes MoU

Closing Bell: Saudi main index edges down 0.34% to close at 10,574

Updated 22 June 2025
Reem Walid
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Closing Bell: Saudi main index edges down 0.34% to close at 10,574

Updated 22 June 2025
Reem Walid

RIYADH: Saudi Arabia’s Tadawul All Share Index edged lower on Sunday, falling 36.44 points, or 0.34 percent, to close at 10,574.27.

Total trading turnover reached SR3.72 billion ($991 million), with 134 stocks posting gains and 102 declining.

The Kingdom’s parallel market, Nomu, also recorded a slight dip, losing 27.14 points, or 0.10 percent, to settle at 26,148.69, as 34 stocks advanced and 39 retreated. Meanwhile, the MSCI Tadawul 30 Index dropped 5.34 points, or 0.39 percent, to finish at 1,361.80.

Alistithmar AREIC Diversified REIT Fund was the best-performing stock of the session, with its share price rising 10 percent to SR8.25. Al Sagr Cooperative Insurance Co. followed with a 9.96 percent increase to SR12.36, while Knowledge Economic City climbed 5.36 percent to close at SR12.98.

On the losing side, Retal Urban Development Co. saw the steepest decline, falling 5.10 percent to SR13.02. Flynas Co. dropped 4.13 percent to SR74.20, and Saudi Chemical Co. declined 3.85 percent to SR6.24.

Shares of Hawiya Identity Auctions began trading on Nomu at SR13 per share. According to a Tadawul statement, the offering comprised 2.4 million shares, with Derayah Financial Co. acting as lead manager.

Gas Arabian Services Co. announced the signing of a joint venture agreement with Italy’s BONOMI Co. to establish a valve manufacturing company in the Kingdom.

The new company will have a capital of SR5 million, with BONOMI holding a 60 percent stake and Gas Arabian Services owning 40 percent.

The Saudi firm will fund its SR2 million share from internal resources. The deal is expected to have a long-term positive financial impact, though it remains subject to regulatory approvals and the fulfillment of conditions outlined in the agreement. Gas Arabian Services shares closed at SR15, up 0.40 percent.

Mayar Holding Co. revealed that its subsidiary, NewPlast Co., has signed a two-year memorandum of understanding with Avant Sports to produce plastic chairs for sports stadiums.

The chairs will be manufactured at NewPlast’s Riyadh facility and will meet international and FIFA standards. The agreement supports Mayar’s commitment to localizing specialized industries in line with Vision 2030 goals.

The price range for the offering of the Sports Clubs Co. ranged between SR7 and SR7.5 per share, according to a statement by Saudi Fransi Capital, the financial advisor and bookrunner for the institutional subscription.

The offering includes 34.32 million ordinary shares, representing 30 percent of the company’s capital.

Topics: TASI NOMU

Saudi culture sector to triple GDP share to $48bn by 2030, says minister

Updated 22 June 2025
MOHAMMED AL-KINANI
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Saudi culture sector to triple GDP share to $48bn by 2030, says minister

Updated 22 June 2025
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia plans to raise the cultural sector’s contribution to gross domestic product to 3 percent — or SR180 billion ($48 billion) — by 2030, up from under 1 percent, according to Minister of Culture Prince Badr bin Abdullah bin Farhan.

In an interview with Al-Eqtisadiah, the minister said the sector has already surpassed its previous 0.91 percent GDP share, with Vision 2030 targets being met ahead of schedule.

“Vision 2030 forms the foundation of the Ministry of Culture’s strategy and direction,” he said. 

“By 2030, we envision a cultural environment that nurtures talent, encourages innovation both locally and internationally, and supports the flourishing of creative and cultural enterprises.” Prince Badr said in the interview. 

“Ultimately, our goal is to increase the sector’s contribution to GDP to 3 percent, equivalent to SR180 billion,” he said. “This represents the core mission of the Ministry of Culture and its affiliated bodies in driving an ambitious cultural transformation.”

Since the ministry’s founding in 2018, employment in the sector has jumped 318 percent, while the number of cultural graduates reached 28,800 in 2024, up 79 percent from 2018. The ministry has also issued over 9,000 licenses, while cultural associations and amateur clubs surged from 28 to 993.

“One notable outcome is the increase in the percentage of citizens who believe culture is important—from under 70 percent to 92 percent,” Prince Badr said. The ministry also oversees national celebrations such as Founding Day and Flag Day and has documented 9,317 antiquities sites and 25,000 urban heritage locations.

Saudi Arabia has now met its Vision 2030 target of having eight UNESCO World Heritage sites, with Al-Faw joining the list in 2024. Cultural event attendance exceeded 23.5 million between 2021 and 2024, and major festivals such as the Red Sea Film Festival and Islamic Arts Biennale have become global draws.

The Cultural Scholarship Program has awarded scholarships to 1,222 students studying at over 120 institutions across countries, including the US, the UK, and France. The program’s flexible design — no age limit or required academic background — has broadened participation. “Today, scholarship recipients are pursuing degrees in fields such as music, theater, and visual arts,” the minister said.

Through the Cultural Development Fund, the ministry has disbursed SR377 million to more than 120 projects. “Key areas of growth include heritage, music, and fashion. More than 1,200 creatives and entrepreneurs have benefited from its development services,” he added.

“Globally, there is increasing recognition of culture’s role in sustainable economic value creation,” the minister said. “Our role is to preserve and promote cultural identity while making it accessible and economically valuable.”

Topics: SaudiVision2030

Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 

Updated 22 June 2025
Nour El-Shaeri
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Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 

Updated 22 June 2025
Nour El-Shaeri

RIYADH: Saudi Arabia welcomed 116 million tourists in 2024, exceeding its annual visitor target for the second year in a row, the official data showed. 

According to the Ministry of Tourism’s latest annual statistical report, the figure includes 29.7 million inbound tourists, an 8 percent increase year on year, and 86.2 million domestic trips, up 5 percent from 2023. 

The milestone reflects the continued acceleration of the Kingdom’s Vision 2030 strategy, which positions tourism as a central driver of economic diversification.  

After surpassing its original 100 million visitor goal six years ahead of schedule in 2023, Saudi Arabia has revised its ambitions upward, now aiming to attract 150 million tourists annually by 2030. This figure is split between 70 million international and 80 million domestic visitors. 

In a post on X, Minister of Tourism Ahmed Al-Khateeb said: “The 2024 Annual Statistical Report showcases the sector’s remarkable growth and its role in enabling Saudi Vision2030, a record performance achieved with the support and guidance of the Kingdom’s visionary leadership.”

Total tourism spending in 2024 hit SR283.8 billion ($75.6 billion), with inbound tourists contributing SR168.5 billion, up 19 percent from 2023, while domestic tourist expenditure reached SR115.3 billion, a 1 percent rise.  

“The tourism sector continued to achieve record growth, reaffirming its transformation into a key driver of economic development and a fundamental pillar in advancing and diversifying the national economy,” the minister said.   

Inbound tourism also reached a record monthly peak in March with 3.2 million visitors. The average international tourist stayed 19 nights and spent SR5,669 per trip.  

A standout development in 2024 was the continued rise in non-religious tourism, now representing 59 percent of inbound visits compared to 44 percent in 2019.  

Leisure and holiday travel topped this category, with related spending reaching SR36.4 billion.   

Makkah remained the top destination, drawing 17.4 million overnight visitors, and Egypt was the leading source market with 3.2 million arrivals.   

Regional analysis revealed that Asia and the Pacific accounted for the largest share of inbound tourists, at 33 percent, followed by the Middle East and North Africa at 28 percent, and the Gulf Cooperation Council at 27 percent.  

Europe contributed 8 percent, while both the Americas and Africa each made up 2 percent of total visitors.  

The sustained growth reflects the Kingdom’s continued focus on developing its tourism infrastructure and global outreach.   

The ministry noted that this report highlights the exceptional and accelerated growth achieved by the sector through targeted marketing campaigns and support programs, contributing to the sector’s record-breaking performance.  
 

Topics: tourism Saudi Vision 2030 Economic growth

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Air France eyes daily Paris-Riyadh flights amid soaring demand

Updated 22 June 2025
Samia Hanifi
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Air France eyes daily Paris-Riyadh flights amid soaring demand

  • New route reflects airline’s ambition to reestablish presence in Saudi market
  • It comes in response to growing demand to access Kingdom’s expanding economic opportunities
Updated 22 June 2025
Samia Hanifi

RIYADH: Air France is planning to operate daily flights between Paris and Riyadh, a senior airline official told Arab News in an exclusive interview.

The announcement follows the launch of the carrier’s first direct route between Paris-Charles de Gaulle and King Khalid International Airport.

Stefan Gumuseli, the airline’s general manager for India and the Middle East, outlined the importance of the new route for the Air France-KLM Group and said it reflects the airline’s ambition to reestablish its presence in the Saudi market.

The decision comes in response to growing demand from travelers and investors eager to access the Kingdom’s expanding economic opportunities.

The new route marks a strategic step for Air France as it expands operations in the region and aligns with the growing connectivity between Europe and Saudi Arabia.

As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations. Supplied

Talking to Arab News, Gumuseli said: “We’re starting with three weekly flights in mid-June, then gradually increasing to five. Our first major goal is to move to a daily service.”

He added that the market is not only outward-looking; the airline is also responding to rising inbound demand for Saudi Arabia, noting that it is experiencing almost exponential year-on-year growth.

Gumuseli also pointed to the Kingdom’s Vision 2030, which reflects a strong commitment to developing tourism, hospitality, and culture, supported by substantial ongoing investments. He said: “All these megaprojects are a clear sign that tourism is booming. We have a strong relationship with Saudi Arabia and are expanding our cooperation.”

His comments were echoed by Air France’s Senior Vice President for Benelux, Asia, India, the Middle East, and East Africa Bas Gerressen, who told Arab News: “Tourism is a very important factor, but we also need traffic, which has grown significantly over the past two years.

“The more connectivity there is between the two countries, the more economic exchange will flourish in both directions,” Gerressen added. 

Air France-KLM has entered into codeshare agreements to strengthen its network connectivity.

“We also place our code on these flights. So, when you consider all that connectivity from both sides, demand can only grow,” Gerressen said.

He added: “I believe Saudi Arabia has many premium travelers, and we need to reach them in specific markets. We already have strong demand across our business, premium and economy classes.”

At the same time, the airline is leveraging its distinctive French identity.

The new route marks a strategic step for Air France as it expands operations in the region. Supplied

‘We position ourselves as a truly French brand — luxury, elegance, sophistication ... The French Touch. You can feel it the moment you board,” said Gerressen.

High-end products, gourmet in-flight dining, La Premiere lounges, and exclusive cabin experiences all reinforce this premium positioning. “We offer one of the best cabins in the region with our new first class, featuring a seat with five windows and just four seats in the entire cabin. It’s a revolution in the industry,” Gerressen added.

He emphasized the cabin crew’s vital role in shaping the passenger experience, highlighting their attentiveness and approachable demeanor.

As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations.

“Each new generation of aircraft reduces CO₂ emissions by up to 25 percent. Today, 28 percent of our fleet consists of these new aircraft, and our goal is to increase this figure to 80 percent by 2030,” Gerressen said. 

The airline is also the world’s leading buyer of sustainable aviation fuel. 

Gumuseli said: “We account for nearly 16 percent of global SAF usage, despite representing only 3 percent of total global kerosene consumption.”

Air France is investing in technology to enhance the passenger experience.

“We’ve decided to install high-speed Wi-Fi on board. In the event of a delay, passengers will receive updates about their connecting flights directly on their screens. With data and technology, we can truly personalize the service,” Gumuseli said.

“Our target customers include expatriates living in Saudi Arabia and tourists wishing to travel to Europe, North America, South America or Africa. Businesses are also a key audience, given the strong commercial ties between France and Saudi Arabia. We aim to serve all these segments,” said Gumuseli.

“Religious tourism should not be overlooked. Pilgrims can now combine Umrah with a more tourist-oriented experience,” he added.

Gerressen stressed the importance of the eVisa: “It is crucial. Simplifying the visa process will be essential in convincing more people to visit Saudi Arabia.”

Topics: aviation AIR FRANCE Air France-KLM

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