Air Arabia Consortium Wins Approval to Launch New Low-Cost Airline in Saudi Arabia

Sharjah-based budget carrier Air Arabia, in partnership with Saudi firms Nesma Group and KUN Holding, has received approval from the General Authority of Civil Aviation (GACA) to establish and operate a new low-cost airline headquartered at King Fahd International Airport in Dammam. This new airline aims to strengthen both domestic and international air connectivity for the Eastern Province.

The approval marks the fruition of a strategic partnership focused on delivering an efficient and reliable operating model aligned with Saudi Arabia’s aviation program goals. The airline is expected to improve travel service quality while contributing significantly to economic growth and job creation in the region.

Air Arabia Group CEO Adel Al Ali expressed pride in the milestone, emphasizing the partnership’s commitment to supporting the Kingdom’s aviation sector development. The airline plans to operate 24 domestic and 57 international routes with a fleet of 45 aircraft by 2030, targeting to serve approximately 10 million passengers annually from Dammam and the Eastern Province.

The initiative is projected to generate over 2,400 direct jobs in the aviation sector and stimulate tourism and local economic development.

Faisal Bin Saleh Al Turki, President of Nesma Group, and Mohamed Bin Nabil Hefni, CEO of KUN Holding, highlighted the project’s broader impact beyond transportation — strengthening tourism infrastructure, creating quality employment, empowering local talent, and supporting aviation-related commercial activities.

They noted that the project embodies the private sector’s vital role in advancing Saudi Vision 2030 and exemplifies a public-private partnership driving sustainable development and transformative growth in the Kingdom’s Eastern Province.