Saudi aviation sector soaring after record growth, major expansions

Riyadh Air is set to commence operations in 2025. Shutterstock
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Updated 03 January 2025
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Saudi aviation sector soaring after record growth, major expansions

JEDDAH: Saudi Arabia’s aviation sector reached new heights over the past 12 months, marked by a surge in passenger numbers, a fleet expansion with new jet acquisitions, and strategic global partnerships.

These advancements are part of a broader vision to establish the Kingdom as a global aviation hub and a top-tier destination for travelers worldwide.

Saudi Arabia is investing billions of dollars as part of its Vision 2030 plan to diversify its economy away from fossil fuels, boosting its private sector, and enhancing connectivity, as well as solidifying its role in the global aviation industry.

As part of this plan, aviation goals for the Kingdom include delivering seamless experiences to 330 million passengers across over 250 destinations, and the transportation of 4.5 million tons of air cargo by 2030.

“This transformative strategy offers lucrative opportunities for the private sector to contribute to the realization of the country’s ambitions,” said President of the General Authority of Civil Aviation Abdulaziz bin Abdullah Al-Duailej.

He added that among these opportunities are the privatization potential of 27 airports, which are currently in preparation for transfer to private ownership.

“Moreover, numerous aircraft requests and destination openings have been approved, providing further avenues for private sector involvement in the sector’s growth and development.” Al-Duailej added.

Passenger numbers and air freight volume surges

Between January and September, Saudi Arabia’s aviation sector achieved record growth, with passenger numbers reaching 94 million, accounting for a 15 percent increase.

The number of flights also saw a 10 percent rise compared to 2023, while air freight volumes approached 1 million tonnes, reflecting a 52 percent increase.

These achievements were announced at GACA’s 14th Steering Committee Meeting for activating the National Strategy for the Aviation Sector, held in October in Dammam.

GACA President Abdulaziz bin Al-Duailej highlighted the expansion of air connectivity during this period, with flights departing to over 150 destinations weekly.

Saudi business aviation soars with Vision 2030 growth

Saudi Arabia’s business aviation sector is booming, driven by the Kingdom’s expanding economy, major government infrastructure investments, and a rising influx of high-net-worth individuals.

Valued at $1.2 billion in 2023, the sector is expected to grow at a compound annual rate of 8.88 percent from 2025 to 2029.

The growth was highlighted in the GACA’s roadmap, unveiled at Riyadh’s Future Aviation Forum in May.

Global firms tapped for King Salman Airport expansion




An image of how King Salman International Airport will look after it has been developed. File

In 2024, global firms such as Foster & Partners, Jacobs Engineering, Mace, and Nera were selected for the next phase of King Salman International Airport’s development in Riyadh.

Led by the King Salman International Airport Development Co., a subsidiary of the Kingdom’s Public Investment Fund, the collaborations will support the airport’s expansion, positioning it as a key hub for tourism and transportation.

Riyadh Air expands fleet, partnerships ahead of 2025 launch

In October, Riyadh Air signed an agreement to purchase 60 Airbus A321neo single-aisle aircraft as it plans to commence its operations in 2025. 

The deal was signed at the 8th Future Investment Initiative in Riyadh.

In the same month the company said that it had plans to order wide-body aircraft capable of seating more than 300 passengers in 2025.

In August, the new airline announced it had secured a multi-year agreement to become the official airline partner of Concacaf, the FIFA Confederation for North, Central America, and the Caribbean.

The deal aims to enhance the airline’s presence in global sports and support Concacaf’s national and club competitions across the Americas. 

In June, Riyadh Air signed agreements with Singapore Airlines and Air China, to establish strategic partnerships and expand its global network.

The agreements focus on interline connectivity, codeshare, frequent flyer programs, cargo services, customer experience, and digital innovation.

The company partnered with China Eastern Airlines to enhance connectivity and digital transformation and with Delta Air Lines to expand North American routes.

In April, the carrier announced a partnership with Artefact to build a data analytics platform and develop AI solutions, enabling hyper-personalization, improved guest experiences, and optimized operations. 

The collaboration aims to revolutionize Saudi aviation through advanced artificial intelligence applications.

“Through AI integration, we aim to redefine travel standards, offering personalized, seamless digital-first experience to our guests ahead of our maiden flight in 2025,” Abe Dev, the airline’s vice president of digital and innovation said.

In May, the airline said it had plans to bolster its aircraft lineup through additional orders, as it requires “a very large fleet” to establish itself alongside regional giants, according to its CEO Tony Douglas.

This move comes as the Kingdom’s second flag carrier ordered 39 Boeing 787-9 jets in 2023, with options for 33 more. “We’re going to make a number of additional orders,” Douglas said.

The airline’s initial destinations will include major cities in Europe, the US East Coast, and Canada, with the inaugural flight scheduled to depart by June 2025.

Saudia boosts aviation with key partnerships, fleet growth




The signing ceremony was attended by French President Emmanuel Macron, Saudi Arabian Airlines Corp. Chairman Saleh Al-Jasser, Saudia Group Director Gen. Ibrahim Al-Omar, and several other dignitaries and ministers. SPA

In December, Saudia entered a strategic partnership with Air France-KLM to expand and localize its maintenance, repair, and overhaul capabilities. This collaboration aims to enhance the Kingdom’s aviation infrastructure and contribute to its economic growth.

In July, the Saudia Group and German aerospace company Lilium NV, developer of fully electric vertical takeoff and landing aircraft, entered into an agreement to purchase 50 confirmed Lilium Jets, with an option for an additional 50 aircraft. The deal will make the Saudi carrier the first airline in the region to invest in sustainable air mobility.

In May, Saudia and Riyadh Air signed an agreement during the Future Aviation Forum to collaborate on training aviation professionals.

During the same event, Saudia Group announced a $19 billion order for 105 A320neo family aircraft, the largest Airbus deal in Saudi history. The planes, including A320neo and A321neo models, will be split between Saudia and its low-cost carrier flyadeal, with deliveries starting in early 2026.

Flyadeal receives first owned plane, aims for 100 by 2030

In 2024, Saudia’s low-cost airline flyadeal took delivery of its first wholly-owned aircraft, an Airbus A320neo.

Announcing the milestone in June, the airline revealed plans to expand its fleet to around 50 aircraft by the end of 2025, doubling to 100 by 2030. As part of its growth strategy, flyadeal also launched seven weekly flights between Riyadh and Sarajevo, utilizing an Airbus A320.

Looking ahead, the airline announced the addition of three new domestic routes starting January. Services from Dammam to Najran and four weekly flights to Tabuk commenced on Jan. 1, followed by three weekly flights to Yanbu starting from Jan. 2.

Flynas secures 280-aircraft deal amid record growth

Flynas, named the Best Low-Cost Airline in the Middle East for the seventh consecutive year, reported a 47 percent rise in passenger numbers, exceeding 7 million in the first half of 2024.

In November, the airline announced new African routes, with flights from Riyadh to Entebbe, Uganda, and Jeddah to Djibouti starting Jan. 8, 2025, under its “We Connect the World to the Kingdom” initiative.

In July, Flynas signed a deal at the Farnborough Airshow to purchase 160 Airbus aircraft, doubling its orders to 280 planes, including 30 wide-body A330neo and 130 narrow-body A320 models. The carrier also celebrated receiving its 53rd A320neo as part of a SR32 billion ($8.5 billion) order for 120 planes.


Global growth to accelerate amid monetary easing, recoveries: QNB

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Global growth to accelerate amid monetary easing, recoveries: QNB

  • QNB forecasts US Federal Reserve to cut rates by 75 bps and the European Central Bank by 150 bps
  • It predicts growth of 2.2% in 2025, down from 2.6% in 2024

RIYADH: Global economic growth is set to accelerate in 2025 as monetary easing, US resilience, and recoveries in Europe and China drive momentum, with Southeast Asian economies benefiting from positive spillovers.

The Qatar National Bank projects a 3.2 percent global growth rate, outpacing Bloomberg’s consensus of 3.1 percent, the state’s news agency QNA reported.

In its latest commentary, QNB anticipates growth in major economies, driven by controlled inflation, eased financial constraints, and policy adjustments by central banks. Emerging markets, specifically the Association of Southeast Asian Nations economies, are set to benefit from these advancements.

The report said that analysts have consistently underestimated global economic performance, as initial projections for 2023 and 2024 fell short of realized growth by 80 and 40 basis points, respectively.

“Analysts and economists have been proving to be over pessimistic when it comes to forecasting major economies and global growth in recent years,” reported QNA.

The national bank added: “In fact, over the last two years, initial expectations for growth were 80 basis points and 40 bps below realized growth in 2023 and 2024, respectively.”

It forecasts the US Federal Reserve to cut rates by 75 bps and the European Central Bank by 150 bps.

“This should support further investment and consumption growth, as credit becomes cheaper, new investment opportunities become more attractive, and the opportunity costs of spending decrease,” it added.

In the US, QNB predicts growth of 2.2 percent in 2025, down from 2.6 percent in 2024 but still above the long-term average of 2.3 percent.

“The US economy is expected to remain on a strong footing as labor markets are resilient, productivity is growing rapidly with fast technology adoption, and households have robust balance sheets with the strongest financial position in decades,” QNB said.

Europe and China are expected to recover from extended periods of stagnation. Growth in the European area is forecast to rise from 0.7 percent in 2024 to 1.0 percent in 2025, supported by lower energy prices and a rebound in global manufacturing demand.

China’s growth is projected to increase from 4.8 percent to 5.0 percent, driven by policy easing and renewed economic momentum.

Emerging Asian nations, particularly ASEAN economies, are set to benefit significantly. “Stronger growth in China is likely to be a significant tailwind to emerging Asia in general and ASEAN economies in particular,” QNB said.

The region’s five largest markets, including Indonesia, Malaysia, the Philippines, Singapore, and Thailand, are forecasted to grow by 5.2 percent in 2025, up from 4.4 percent in 2024.

“All in all, we expect to see a moderate acceleration of global growth in 2025, with significant monetary easing, a resilient US economy, a cyclical recovery in Europe and China, and positive spillovers to ASEAN economies,” QNB said.


Saudi Arabia’s King Abdulaziz International Airport serves 49.1m passengers in 2024

Updated 46 min 48 sec ago
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Saudi Arabia’s King Abdulaziz International Airport serves 49.1m passengers in 2024

  • Airport’s busiest day ever recorded was on Dec. 31, 2024
  • KAIA handled 47.1 million bags in 2024

RIYADH: King Abdulaziz International Airport in the Saudi port city of Jeddah served 49.1 million passengers in 2024, representing a 14.1 percent growth compared to the previous year. 

In a statement, Jeddah Airports Co. said that this achievement marks a “historic milestone,” as KAIA handled the highest annual operational figure in the history of airports in the Kingdom in 2024. 

The airport’s busiest day ever recorded was on Dec. 31, 2024, when it served more than 174,600 passengers. 

December also became the busiest month in the airport’s history, with passenger numbers surpassing 4.7 million. 

Strengthening the aviation sector is crucial for Saudi Arabia, as the Kingdom aims to position itself as a global tourism hub by the end of this decade. 

The National Tourism Strategy of Saudi Arabia aims to attract 150 million visitors by 2030 and increase the sector’s contribution to the nation’s gross domestic product from 6 percent to 10 percent.

KAIA also reported a significant increase in total flights last year, which exceeded 278,000, marking an 11 percent increase compared to 2023. 

The press statement added that KAIA also handled 47.1 million bags in 2024, with a 21 percent growth in operational throughput. 

Mazen Johar, CEO of Jeddah Airports attributed this rise in numbers to the KAIA’s accelerated operational growth, enabled by the Kingdom’s leadership and the close oversight of the Ministry of Transport and Logistics. 

Saudia achieves the highest punctuality rate

The Kingdom’s national carrier, Saudia, has topped the list of global airlines in departure on-time performance with a punctuality rate of 88.82 percent in 2024, according to new data from the independent aviation tracking site Cirium. 

According to a press statement, Saudia also ranked second globally in arrival on-time performance, achieving a rate of 86.35 percent. 

Over the past 12 months, the airline successfully operated 192,560 flights across its network of over 100 destinations spanning four continents. 

“We are proud to sustain excellence in global operational performance, which aligns with the objectives of the National Transport and Logistics Strategy and the National Aviation Sector Strategy,” said Ibrahim Al-Omar, director general of Saudia Group. 

He added: “This achievement reflects the collective efforts of Saudia Group employees across all business units and highlights the integrated role played by various sectors in ensuring operational efficiency. These efforts are directly tied to enhancing and improving the guest experience.” 

Saudia operates over 530 daily flights, connecting more than 100 destinations across four continents to the Kingdom with a fleet of 144 aircraft.

In the statement, the airline added that it plans to expand its fleet with 130 new aircraft in the coming years, increasing flight frequency and seat capacity to existing destinations while introducing new destinations to its network. 


Saudi Arabia boosts desalinated water supply to 50% in Vision 2030 push

Updated 05 January 2025
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Saudi Arabia boosts desalinated water supply to 50% in Vision 2030 push

RIYADH: Saudi Arabia’s water sector witnessed significant shifts in 2023, with a 31 percent increase in desalinated seawater production, now comprising 50 percent of the country’s distributed water supply, up from 44 percent in 2022, official data showed. 

According to the General Authority for Statistics’ latest Water Accounts report, non-renewable groundwater consumption by the agricultural sector dropped by 7 percent to 9,356 million cubic meters, compared to 10,044 million m³ in 2022. 

This surge reflects the Kingdom’s strategic efforts to bolster sustainable water resources as part of its Vision 2030 agenda, aimed at reducing dependency on non-renewable groundwater.  

In 2023, renewable groundwater abstraction rose to 21 percent of total groundwater use, while non-renewable abstraction fell by 6 percent, aligning with the country’s emphasis on resource preservation. Additionally, water reuse consumption increased by 12 percent to 555 million m³, signaling progress in recycling initiatives. 

Agriculture remained the largest consumer of water, using 12,298 million m³, but its expenditure share accounted for only 0.5 percent of total water costs. Meanwhile, industry dominated water-related expenditures at 61.4 percent, reflecting its significant reliance on distributed water for operations. 

The shift toward desalinated and renewable water sources is pivotal for Saudi Arabia, which faces acute water scarcity challenges. With groundwater resources depleting and the per capita household water consumption declining from 112.8 liters per day in 2022 to 102.1 liters in 2023, the Kingdom’s investments in desalination and reuse technologies underscore its commitment to long-term water security. 

Industrial sectors saw a notable increase in water consumption, with the share of distributed water used by industries rising to 30 percent in 2023 from 22 percent in 2022. This surge mirrors the Kingdom’s push for industrial expansion under Vision 2030, which emphasizes economic diversification. 

Despite these strides, non-renewable groundwater still constitutes 62 percent of the natural water supply, a decline from 68 percent in 2022 but still a dominant figure. The agriculture sector’s significant water use highlights opportunities for adopting more efficient irrigation techniques and exploring crop diversification to enhance sustainability. 

Saudi Arabia’s water strategy is set to play a critical role in achieving its economic and environmental goals. As the Kingdom continues to expand its desalination infrastructure and promote water reuse, it positions itself as a regional leader in tackling water scarcity through innovation and sustainable practices. 


Egypt advances nuclear program with permit for spent fuel storage

Updated 05 January 2025
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Egypt advances nuclear program with permit for spent fuel storage

RIYADH: Egypt’s Nuclear Power Plants Authority has secured a permit to construct a spent atomic fuel storage facility at the El-Dabaa power plant, located approximately 320 km northwest of Cairo.

The NPPA plans to begin the construction of the facility in 2025. This storage solution will provide safe, dry, and scientifically advanced containment for spent nuclear fuel, with the capacity to store waste for up to 100 years, all while adhering to the highest standards of safety and environmental protection.

El-Dabaa, Egypt’s first nuclear power plant and the country’s largest energy project in decades, is being developed in collaboration with Russia’s Rosatom. The plant will house four VVER-1200 reactors, the same type as those in operation at Russia’s Leningrad and Novovoronezh plants, as well as Belarus’s Ostrovets.

In a statement issued by the NPPA, Amjad El-Wakeel, chairman of the authority, highlighted the achievement as a significant milestone in Egypt’s nuclear program. “The authority has successfully secured the permit for the construction of the spent nuclear fuel storage facility at El-Dabaa, aligning with the project’s implementation timeline,” the statement read.

The NPPA formally submitted the permit request to Egypt’s Nuclear and Radiological Regulatory Authority on June 12, 2024, accompanied by comprehensive design and technical documentation reviewed by nuclear specialists.

Following a series of productive technical meetings between NPPA and NRRA experts, the permit was granted during NRRA’s seventh session on Dec. 31, 2024.

The decision came after a successful site inspection by NRRA representatives, who visited the El-Dabaa plant from Dec.1 to 5, 2024, to assess the site’s readiness for construction.

This development highlights Egypt’s commitment to advancing its nuclear energy program in line with both national priorities and international safety standards, the statement further noted.

Located in the Matrouh governorate along the Mediterranean coast, 250 km west of Alexandria, the El-Dabaa site offers numerous strategic advantages, including access to rail and road networks, low seismic activity, and an abundant supply of cooling water.

The El-Dabaa nuclear project, which has been in the planning stages since 1954, received formal approval in 1983 and was publicly announced in 2007. Following approval from the International Atomic Energy Agency in 2010, Egypt finalized agreements with Russia in 2015. Contracts came into effect in December 2017, and construction officially commenced in July 2022.


Saudi Arabia’s non-oil sector sustains growth in December: PMI survey 

Updated 05 January 2025
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Saudi Arabia’s non-oil sector sustains growth in December: PMI survey 

RIYADH: Saudi Arabia’s non-oil private sector ended 2024 on a strong footing, driven by the fastest sales growth in a year, which pushed the Kingdom’s Purchasing Managers’ Index to 58.4 in December, according to a survey. 

The Riyad Bank Saudi Arabia PMI survey, compiled by S&P Global, showed that total sales volumes in the non-energy sector rose sharply in December, fueling robust increases in business activity and inventories. 

This performance underscores the Kingdom’s ongoing economic diversification under Vision 2030, which aims to reduce reliance on oil and promote sustainable growth. 

“Saudi Arabia’s non-oil private sector ended 2024 on a high note, reflecting the successful strides made under Vision 2030. The Purchasing Managers’ Index recorded 58.4, underscoring the sector’s resilience and expansion,” said Naif Al-Ghaith, chief economist at Riyad Bank. 

However, December’s PMI slightly declined from November’s 17-month high of 59. In October, the PMI stood at 56.9, and it registered 56.3 and 54.8 in September and August, respectively. 

According to S&P Global, any PMI reading above 50 signals growth in the non-oil sector, while readings below 50 indicate contraction. Notably, the Kingdom’s PMI has stayed above the 50 neutral mark continuously since September 2020, affirming the progress of its non-energy sector. 

The survey highlighted that cost inflation remained sharp in December due to strong input demand, but an easing of job creation helped to soften salary pressures for businesses. 

Non-oil businesses participating in the PMI survey noted that strong economic conditions, higher client demand, and new marketing campaigns contributed to a significant upturn in new work during the final month of 2024. 

“The non-oil GDP is expected to grow by more than 4 percent in 2024 and 2025, driven by substantial improvements in business conditions. A significant rise in new orders has bolstered this growth, indicating increased market confidence and demand,” said Al-Ghaith.  

He added: “Despite challenges such as sharp cost inflation due to strong input demand, the sector has navigated these pressures effectively. December saw a notable increase in material costs, yet wage costs rose more moderately. This balance was aided by an easing in job creation, which helped soften salary pressures.”  

Saudi Arabia’s non-oil businesses also strengthened their presence in international markets. The survey reported the sharpest increase in new export orders in 17 months, driven by product innovations and strong relationships with international clients. 

Business expectations improved to a nine-month high in December, with firms expressing optimism that robust sales growth would lead to greater activity levels in 2025. 

“With the non-oil GDP anticipated to continue its upward trajectory, the sector is well-positioned to contribute significantly to the Kingdom’s long-term economic goals,” said Al-Ghaith.  

He added: “The focus on improving business conditions, boosting domestic and international demand, and managing inflationary pressures aligns seamlessly with Vision 2030’s objectives, setting the stage for sustained growth and prosperity in the upcoming years.”