Saudi Arabia en route to be An aviation powerhouse

Saudi Arabia is pursuing an ambitious aviation strategy with a commitment of USD 100 billion in both government and private sector investments. 

The Kingdom’s aviation strategy aims to achieve several key objectives by 2030, including tripling annual passenger traffic from 100 million to 330 million, expanding connectivity to over 250 global destinations, and increasing air cargo volume from 0.8 million to 4.5 million tons. 

Additionally, Saudi Arabia plans to establish two global long-haul connecting hubs in Riyadh and Jeddah to strengthen its position in international aviation.

Several key projects are already underway to support these objectives. 

Riyadh Air, a newly launched airline, is expected to begin operations by 2025, targeting over 100 global destinations by 2030. The airline has placed orders for 39 Boeing 787-9 aircraft with options for 33 more and, according to speculations, they will be ordering additional narrowbody aircraft. 

Riyadh Air is also centred around delivering premium, customer-centric experience, incorporating digitalisation and AI to streamline passenger services. 

“We are particularly excited about the role we can play in supporting the incredible growth of tourism in the Kingdom,” Tony Douglas, CEO of Riyadh Air, said.

Over 8.6 million tourists from the GCC vacationed in Saudi Arabia in 2023 alone, contributing SAR15 billion to the economy. And this is just the beginning, the latest data from the United Nations Tourism Organisation shows Saudi Arabia leading the G20 in international tourism growth.

Meanwhile, Saudia Group, which includes flyadeal, has ordered 105 Airbus narrowbody aircraft, adding to its fleet expansion. 

“flyadeal’s mandate is to operate a young fleet of aircraft that helps keep its unit costs low and allow savings to be passed onto consumers. Newer aircraft reduce carbon emissions, improve fuel economy and reduce overall operational costs,” said flyadeal CEO Steven Greenway.

In May 2024, the airline placed its largest ever aircraft order for 51 Airbus A320 family aircraft, comprising 12 Airbus A320neos and 39 larger A321neos that will help boost its current fleet threefold from 35 aircraft to over 100 by 2030.

Flynas, too, has also placed orders for approximately 280 aircraft. 

By increasing the number of airlines operating in the country, both through the launch of Riyadh Air and by attracting more foreign carriers, the Saudi market is set to become more competitive. This influx of capacity is expected to drive down airfares, benefiting consumers and making air travel more accessible. 

On the policy front, there have been several initiatives aimed at incentivising airlines and increasing connectivity. One such initiative is the Air Connectivity Program, which has successfully developed 23 new routes as of November 2023, André Martins, Partner and Head of Transportation and Services Practice for India, Middle East and Africa (IMEA), Oliver Wyman said.

Moreover, significant fleet expansions planned by Saudi-based airlines will contribute to this competitive pricing environment, enhancing the Kingdom’s attractiveness as a global aviation hub. 

Building futuristic infrastructure

From leveraging cutting-edge technology and building modern infrastructure to enhancing passenger experience and operational efficiency, Saudi Arabia’s aviation sector is undergoing a ground-up transformation to assemble a robust digital environment – to achieve its one true goal – promoting seamlessness, integration, and automation. 

On the infrastructure side, major airport expansions are in progress. New projects such as the Red Sea International Airport (RSI) and the Riyadh Airport are designed with a focus on luxury and innovation, catering to both business and leisure travellers. 

Martins said, “Jeddah Airport will see a USD 31 billion expansion to increase its capacity to 114 million passengers, while Riyadh Airport aims to expand its capacity to 120 million passengers by 2030. Other projects like the Red Sea and NEOM airports are also in development.” 

With the help of leading innovative projects, Saudi Arabia is positive about accomplishing its aviation goals, allowing it to be the next powerhouse of the aviation industry.

“Red Sea International Airport collaborates with leading providers in the field of technology and sustainability, aiming to enhance both passenger experience and operational efficiency,” said Michael White, Chief Commercial Officer at RSI.

According to White, one of the Red Sea’s unique features is the ability for guests to remotely check-in for their flight from their hotel at The Red Sea destination. The benefit of utilising these modern technologies enables this service to operate smoothly, allowing guests to spend more time at their resorts and promoting a smoother journey through the airport.

“At RSI, we are committed to delivering world-leading experiences. Our revolutionary, smart luggage system is an essential part of this offering, ensuring a stress-free, timesaving, and truly seamless travel experience from the moment passengers arrive,” White added.

Red Sea International Airport has been receiving a regular schedule of domestic flights since September 2023 and international flights began in April 2024, with a twice-weekly route between RSI and Dubai International Airport.

To further support the growth of the aviation sector, new services like Avilease, an aircraft leasing entity, and a 1 million sqm maintenance, repair, and overhaul (MRO) facility by SAEI in Jeddah are being established. 

“There has been a significant reduction in airport charges by ~35% at key airports, further supporting the goal of enhancing connectivity. Obviously, all these targets are ambitious and will require significant work and supply chain challenges to be addressed for targets to materialise in the expected timeframe,” Martins said.

In parallel with airport infrastructure upgrades, KSA is modernising its air traffic management systems. By adopting digital air traffic control (ATC) systems, the Kingdom will enhance operational efficiency, reduce delays, and improve safety. 

“These advancements will allow Saudi Arabia to handle the expected surge in air traffic while minimising bottlenecks and ensuring smooth coordination between domestic and international flights,” said Rakan Alobaid, a Saudi-based airline pilot, aviation consultant, and analyst.

Moreover, investments in MRO services are being accelerated to ensure Saudi Arabia can offer comprehensive support to both local and international carriers, further boosting its competitiveness in the global aviation market, Alobaid added.

Sustainability at its core

Saudi Arabia is increasingly focusing on sustainability within its aviation sector as part of Vision 2030, aligned with global sustainability trends to develop and integrate sustainable aviation fuel (SAF) and green infrastructure. 

In 2023, SATORP, a joint venture between Aramco and TotalEnergies, made significant progress by converting cooking oil into SAF, marking the first instance of this in the region.

“In addition to advancing SAF, Saudi Arabia is investing in sustainable airport infrastructure. These initiatives place Saudi Arabia at the forefront of green aviation, demonstrating its commitment to sustainability while contributing to the global efforts to reduce carbon emissions,” Martins added.

According to Alobaid, Saudi Arabia is shifting towards using electric ground vehicles and airport equipment to reduce emissions at its major airports. This transition is critical for ensuring that airports contribute to the broader goal of achieving net-zero emissions by 2060, in line with Saudi Arabia’s national climate targets.

“Sustainable air mobility aims to reduce carbon emissions through the use of electric and hybrid aircraft technologies. Technologically advanced air mobility integrates innovative solutions such as autonomous flight systems and smart infrastructure to enhance efficiency and user experience,” said Joseph Alesia, Executive Director of Advanced Air Mobility NEOM. 

Greenest airport in KSA

The Kingdom is making great strides in developing one-of-a-kind infrastructure to solidify its stature as a worldwide aviation frontrunner. While eyeing this ambition, the country’s aviation industry is also investing heavily in creating newer avenues for achieving its green goals.

The Red Sea International Airport, known as the “greenest” airport in the Kingdom, is powered entirely by renewable energy, setting a new benchmark for environmentally friendly aviation infrastructure. 

“RSI is contributing to the sustainability shift in aviation and demonstrates a commitment to environmental stewardship by being powered entirely by renewable solar energy. Additionally, it has been designed with a LEED Gold certification in mind, reflecting its focus on energy efficiency and sustainability,” White said.

The terminal has been arranged into five pods and each can be operated independently or concurrently depending on demand. This reduces the overall energy demand of the building when compared with a standard centralised terminal approach. The terminal has also been designed to maximise the use of natural daylight and by doing so, reduce artificial lighting requirements.  

“Generally, where there’s a feasible and practical electrical option available for ground service equipment at Red Sea International Airport (RSI), this was procured,” White added.

According to White, innovative sustainability solutions will be implemented across all RSI operations to eliminate and offset carbon emissions, optimise energy consumption, and advance efficiencies in resource and waste management aligning with Saudi Arabia’s vision for sustainable air travel.

Contributing to the national economy

The development of the aviation sector in Saudi Arabia impacts the local economy by enhancing connectivity, tourism, and hospitality, leading to attracting new investment in these sectors. 

“RSI is ideally positioned to serve as a gateway for visitors, showcasing the Red Sea’s stunning landscape and rich cultural heritage. This not only enhances the overall guest experience it will create significant opportunities for jobs and economic development,” White said. 

The growth of Saudi Arabia’s aviation industry plays a crucial role in realising the goals of Vision 2030. 

Furthermore, the sector is a critical enabler for the country’s tourism ambitions, with a target of attracting 100 million tourists annually by 2030. This will drive significant economic growth in related industries such as hospitality and retail, as well as for a significant increase in logistics flows. 

Creating employment opportunities

According to Martin, by establishing itself as a major global transport hub, Saudi Arabia will not only enhance its global connectivity but also boost trade and foreign direct investment, thereby cementing its position in the global economic landscape. 

“Saudi Arabia and its people have significant experience in the aviation sector through the operation of very successful airlines and airports to date. At RSI, we are looking to push the service boundaries ever further via Red Sea Global’s Elite Graduate Program which puts the most ambitious Saudi nationals through a two-year diploma program before employing them, including at the airport,” White said.

“This is further supplemented by regular on the job training programs that focus on emulating the service quality of a 5-star hotel rather than a conventional commercial airport,” he added.

In 2024, flyadeal inducted its 50th cabin crew batch and began a pioneering cabin crew diploma in conjunction with Princess Nourah bint Abdulrahman University – the world’s largest female-only university – to encourage young, aspiring Saudi women to take up careers in flying. 

“And with our first Saudi pilots graduating under flyadeal’s new cadet training program, the airline is taking significant steps towards Saudization,” Greenway added.

Additionally, the aviation sector is expected to generate approximately 35,000 new jobs by 2030, contributing to employment creation and economic diversification. “This will make aviation one of the largest non-oil contributors to the economy, fostering both direct and indirect employment opportunities,” said Alobaid.

Investing in the future of air mobility 

Saudi Arabia is embracing cutting-edge aviation technologies to integrate electric and hybrid aircraft into its future mobility infrastructure. NEOM, a key component of Saudi Arabia’s futuristic development vision, has invested USD 175 million in Volocopter, a leading electric vertical take-off and landing (eVTOL) aircraft manufacturer. 

“NEOM aims to create a transportation network that eliminates the need for personal vehicles, promoting sustainable modes of transport. The city will integrate advanced air mobility solutions, including electric vertical takeoff and landing aircraft, into its public transportation system,” said Alesia.

He added, the futuristic city is designed from the ground up, allowing for innovative infrastructure development without the constraints of existing transportation networks.

“This investment will accelerate the deployment of electric air mobility in NEOM, including the VoloCity for urban air taxi services, the VoloRegion for intercity flights, and the VoloDrone for cargo transport. NEOM aims to have these services operational by 2025, powered entirely by renewable energy sources,” Martins commented.

Additionally, Saudi Arabia’s Public Investment Fund (PIF) has invested in Boom Supersonic, which is developing a sustainable supersonic airliner. 

These aircraft will be deployed across key locations, including Jeddah, Riyadh, and the Red Sea, with deliveries expected to begin in 2026. These advancements position Saudi Arabia as a pioneer in the integration of next-generation aviation technologies into its infrastructure.

Speaking of tech investments, KSA is also investing in digital ATC systems, which  leverage automation, artificial intelligence, and real-time data to optimise air traffic management. 

“These systems allow for faster decision-making, reduced human error, and  improved coordination between aircraft and ground control. As air traffic increases, digital  ATC will be essential in maintaining high levels of safety and efficiency in Saudi airspace,” Alobaid said.

Meanwhile, being a digital-savvy airline, flyadeal has taken technology seriously, investing in latest technology and developing IT solutions inhouse to keep costs under control. flyadeal has invested in customer-friendly enhancements such assets Mobile App developed internally to make bookings and other customer features easy use.

flyadeal has adopted Artificial Intelligence for several years to help improve administrative processes, revenue, service enhancements, productivity, and predictions of consumer behaviour. “Eight percent of our overall bookings come from AI driven audiences,” Greenway said.

The commitment to strategic technological integration goes beyond simply utilising the latest gadgets. 

As a brand-new airline, Riyadh Air has the unique advantage of building everything from scratch, embracing the latest technology without being held back by outdated systems. This allows the carrier to put digital innovation at the forefront, ultimately benefiting both their operational efficiency and guest experience.

For instance, Riyadh Air’s work with Artefact, a leader in AI, allows the airline to build a robust data platform that anticipates needs and provides proactive, intuitive service throughout the journey while maintaining true Saudi hospitality. 

“Our collaboration with Noon Payments will enhance the passenger experience through innovative payment solutions during the flight, ensuring seamless and convenient transactions. Furthermore, by collaborating with IBM, we will leverage cutting-edge technologies, such as AI-powered check-in systems and immersive n-flight entertainment, to introduce next-generation, channel-fluid guest and traveller interactions,” Douglas said.

Establish international partnerships and collaborations

Collaborations and partnerships between various stakeholders is crucial for thriving in a constantly changing industry. This involves aligning regulatory frameworks with technological advancements to ensure safety and efficiency in urban air mobility.

Collaboration fosters public trust and acceptance by addressing community concerns and ensuring that air mobility solutions are aligned with existing transportation networks, opined Alesia. 

Engaging with navigation companies helps in developing standardised systems for air traffic management, enhancing the overall infrastructure for air mobility.

“At RSI, we are members of ACI and attend the key industry events throughout the year to ensure that we stay deeply connected to opportunities and the latest innovations.”

“We contract with both national and international partners at RSI and are actively promoting Saudi Arabia to international airlines to promote inbound tourism in line with Saudi Arabia’s National Tourism Strategy. We currently have two airlines operating at RSI, Saudia and flydubai, and are keen to add more international airlines to our network in 2025,” White commented.

Partnerships also help airlines broaden their horizons, for instance, Riyadh Air is building a route network that will connect Riyadh, the capital of Saudi Arabia, to the world.

“We aim to position Riyadh as a major hub for aviation, connecting travellers to more than 100 destinations by 2030. To achieve this, we continuously analyse market data and partner with global airlines like Delta Air Lines, Turkish Airlines, and Singapore Airlines to inform our expansion and fleet strategies,” Douglas said. 

He added, we are carefully selecting destinations based on market demand, economic viability, and alignment with Saudi Arabia’s goals, including its rising prominence as a global hub. 

Low-cost carrier flyadeal, too, is looking to expand its operations significantly in 2025. New domestic routes in underserved markets will help increase connectivity within Saudi Arabia, catering to both business and leisure travellers. 

“There will also be a huge focus internationally with expansion in selected markets in the Middle East, Africa, and South Asia. Appealing to tourist and business travellers, the new routes will also appeal to inbound travellers, including pilgrims, to explore all that the Kingdom has to offer,” Greenway opined.

He added, “We continually evaluate opportunities based on demand and competitiveness, working closely with airport partners to explore new markets and enhance passenger connectivity in an aviation landscape hungry for additional air services.”

What the future holds…

Saudi Arabia’s Vision 2030 aims to diversify the economy and reduce dependence on oil, with aviation playing a crucial role in this transformation. 

The Kingdom is investing in building infrastructure of the future to cater to the growing demands of the aviation sector. The country is also keen on advanced air mobility infrastructure, including electric vertical takeoff and landing (eVTOL) aircraft, to enhance urban transportation and connectivity.

Collaboration with global aviation stakeholders and regulatory bodies is essential for establishing Saudi Arabia as a leading hub for aviation innovation and technology.

Evidently, sky’s the limit for Saudi’s aviation ambitions and the Kingdom is leaving no stone unturned to realise these goals.