Key Takeaways
• Saudi Arabia removes cabotage restrictions for foreign charters effective May 1, 2025.
• Record 34.9 million passengers traveled Saudi airports Q1 2025, an 8% growth year-over-year.
• Saudi aviation market projected to reach $51.4 billion by 2035 under Vision 2030.
Saudi Arabia’s Aviation Market: Growth, Policy Changes, and What It Means for Travelers and Businesses
Saudi Arabia’s aviation market is undergoing a major transformation, with new policies, record-breaking passenger numbers, and ambitious infrastructure projects shaping its future. The General Authority of Civil Aviation (GACA) is leading these changes, aiming to position Saudi Arabia 🇸🇦 as a global aviation hub. This article explains the latest developments, what’s driving the growth, and how these changes could affect travelers, airlines, and the broader economy.
Who, What, When, Where, Why, and How
Saudi Arabia 🇸🇦 is set to become a major player in the global aviation market. The country’s aviation sector is projected to grow from $7.08 billion in 2024 to $11.71 billion by 2032, with some forecasts suggesting it could reach $17.9 billion by 2025 and even $51.4 billion by 2035. The General Authority of Civil Aviation is at the center of these changes, introducing new policies and supporting large investments in airports and aviation services. These efforts are part of Saudi Vision 2030, a national plan to diversify the economy and open the country to more international business and tourism.
Key Developments Shaping the Market
Removal of Cabotage Restrictions: Opening the Skies
One of the most important recent changes is the removal of cabotage restrictions on charter flight operations, effective May 1, 2025. Cabotage restrictions previously stopped foreign airlines from flying passengers between cities within Saudi Arabia 🇸🇦. Now, for the first time, international business and private jet operators can offer flights inside the Kingdom.
Imtiyaz Manzary, General Manager for General Aviation at GACA, explained, “GACA is excited to welcome international operators to fly within Saudi Arabia. This policy change will build real opportunities for growth, create jobs, and make the Kingdom a more connected, accessible place for business and private travel. We believe this step will unlock huge potential for operators and passengers alike.”
Since the announcement, several international operators have already applied to enter the Saudi market. This move is expected to increase competition, improve service quality, and give travelers more choices.
Record Passenger Numbers in Early 2025
Saudi Arabia’s airports saw record-breaking passenger numbers in the first quarter of 2025, with 34.9 million passengers traveling between January and March. This is an 8% increase compared to the same period last year, even though Ramadan, a time when travel often slows, fell during this quarter. This growth shows strong demand for both domestic and international flights.
Hosting IATA Aviation Day MENA 2025
For the first time, Saudi Arabia 🇸🇦 hosted the IATA Aviation Day MENA 2025 in Jeddah on May 6-7. The International Air Transport Association (IATA) used this event to highlight that growth in the Gulf Cooperation Council (GCC) is outpacing all other regions. During the forum, IATA announced new training agreements with Saudi airlines, airports, and universities, aiming to train over 1,000 graduates and aviation professionals in airport operations, safety, airline management, and ground handling.
Market Size and Growth: By the Numbers
- 2024 Market Value: $7.08 billion
- Projected 2032 Value: $11.71 billion (CAGR of 6.5%)
- 2025 Forecast: $9.79 billion, with annual growth of 5.61% from 2025 to 2029
- Ambitious 2035 Projection: $51.4 billion (CAGR of 11.2%)
2024 Performance Highlights:
– 128 million passengers traveled through Saudi airports in 2024
– 59 million on domestic flights
– 69 million on international flights
– 905,000 flights recorded, an 11% increase from 2023
– 170+ destinations now connected to Saudi airports, a 16% increase in connectivity
The first half of 2024 saw the air traffic industry growing at a 10.7% CAGR, driven by more low-cost carrier routes and expanded air service agreements with other countries.
Strategic Initiatives and Policy Changes
General Aviation Roadmap
The General Aviation Roadmap, announced in May 2024, is a key part of Saudi Arabia’s plan to grow its private aviation sector into a $2 billion industry by 2030. The roadmap includes:
- Regulatory reforms like lifting cabotage and empty-leg restrictions (which previously limited how private jets could operate)
- Major infrastructure investments to build and upgrade airports and support facilities
These changes are designed to make Saudi Arabia 🇸🇦 more attractive to international operators and investors.
Saudi Aviation Strategy and Vision 2030
The Saudi Aviation Strategy supports the broader Vision 2030 plan, focusing on:
- Making Saudi Arabia a global aviation hub
- Growing the private aviation and business jet sector
- Creating a more open, competitive, and investor-friendly aviation market
IATA has identified three main priorities to help Saudi Arabia sustain its aviation growth:
- Better coordination with all stakeholders (airlines, airports, government)
- Cost-effective infrastructure development
- Building national talent through training and education
Major Infrastructure Projects
Saudi Arabia 🇸🇦 is investing heavily in airport infrastructure to support its aviation goals:
- King Salman International Airport in Riyadh: This new airport will serve as a major link connecting Africa, Europe, and Asia.
- King Abdulaziz International Airport expansion in Jeddah: The expansion will increase capacity and improve services at one of the country’s busiest airports.
- General Aviation infrastructure: New facilities and upgrades are being built to support private and business aviation.
Airline Expansion and New Entrants
More Airlines, More Destinations
In the past year, 21 new international airlines have entered the Saudi market. In the first quarter of 2025, foreign carriers brought a large number of passengers to and from the Kingdom.
Network Growth:
– Saudia Airlines: Plans to add 11 new destinations in 2025.
– Flynas: Expanded with new flights to Entebbe, Uganda, and Djibouti, offering three weekly flights from Riyadh and Jeddah.
– Beond: This premium leisure airline will offer on-demand charter services throughout summer 2025.
Corporate Expansion
Aviation Services Management (ASM) opened a new office in Saudi Arabia 🇸🇦 in September 2024, partnering with a local operator. This move aims to meet the growing demand for aviation fueling, flight planning, and other services.
Economic Impact and Job Creation
The aviation sector is a major contributor to Saudi Arabia’s economy:
- $53 billion contributed to the economy in 2023
- 958,000 jobs supported across the Kingdom
- The private aviation sector is targeted to become a $2 billion industry by 2030
These numbers show how important aviation is for job creation and economic growth.
Future Outlook: What’s Next for Saudi Aviation?
Arab Aviation Summit 2025
The 12th Arab Aviation Summit was held in Riyadh on February 17-18, 2025, hosted by H.E. Abdulaziz bin Abdullah bin Abdulaziz Al-Duailj, President of GACA. The summit brought together government officials, private sector leaders, media, and innovators to discuss the future of aviation and tourism in the region.
Workforce Development
IATA has launched new training partnerships with:
- Riyadh Airports Co.
- Qassim University
- Prince Sultan Aviation Academy
These organizations will offer over 60 programs to help develop technical, commercial, and interpersonal skills for Saudi Arabia’s aviation workforce.
Ongoing Regulatory Changes
The removal of cabotage restrictions is part of a larger trend toward market liberalization. Saudi Arabia 🇸🇦 is expected to continue making its aviation market more open and competitive as it works toward becoming a global hub.
Industry Perspectives and Expert Opinions
Kamil Al-Awadhi, IATA’s regional vice president for Africa and the Middle East, said the Middle East could soon lead the global aviation industry, with the Gulf Cooperation Council’s growth outpacing all other regions. He credited this success to strong political leadership and coordinated aviation strategies.
Gabriel Semelas, President of Airbus Africa and the Middle East, noted, “As a key platform for driving collaboration and innovation in aviation, the Arab Aviation Summit reflects Airbus’ long-term commitment to the Kingdom of Saudi Arabia and the wider region. Aligned with Saudi Vision 2030, this initiative highlights the Kingdom’s pivotal role in shaping the future of global aviation.”
Majid Khan, CEO of the Saudi Connectivity Program, stressed the importance of working together across different sectors: “The Arab Aviation Summit 2025 serves as a vital platform for fostering stronger relationships, not just within the aviation sector but also across industries. By bringing together operators, innovators, and cross-sector organizations, the summit drives collaboration that unlocks transformative opportunities aligned with Saudi Vision 2030.”
Implications for Stakeholders
For Travelers
- More choices: With more airlines and routes, travelers will have more options for both domestic and international flights.
- Better service: Increased competition is likely to improve service quality and lower prices.
- Easier access: New policies and airport expansions will make it easier to travel to, from, and within Saudi Arabia 🇸🇦.
For Airlines and Operators
- New opportunities: The removal of cabotage restrictions and other reforms open the market to international operators.
- Growing demand: Record passenger numbers and economic growth mean more business for airlines.
- Need for investment: Airlines will need to invest in staff training, new aircraft, and technology to keep up with the market’s rapid growth.
For the Economy and Workforce
- Job creation: The aviation sector already supports nearly a million jobs, and this number is expected to grow.
- Economic growth: Aviation is a key part of Saudi Arabia’s plan to diversify its economy and attract more foreign investment.
- Skills development: New training programs will help build a skilled workforce for the future.
Official Resources and Further Information
For readers seeking more details about Saudi Arabia’s aviation regulations, policies, and updates, the General Authority of Civil Aviation’s official website provides comprehensive and up-to-date information: General Authority of Civil Aviation.
Conclusion and Practical Takeaways
Saudi Arabia’s aviation market is on a fast track to becoming one of the world’s most dynamic and open. With the General Authority of Civil Aviation leading policy reforms, record passenger growth, and major investments in infrastructure and workforce development, the Kingdom is well on its way to achieving its Vision 2030 goals. Travelers can look forward to more choices and better services, while airlines and businesses will find new opportunities in a rapidly expanding market.
As reported by VisaVerge.com, these sweeping changes are not only transforming the aviation sector but are also creating new pathways for economic growth, job creation, and international connectivity. Stakeholders should stay informed about ongoing policy updates and take advantage of the new opportunities emerging in Saudi Arabia’s aviation market.
For those planning to travel, invest, or work in Saudi Arabia’s aviation sector, now is the time to explore the possibilities and prepare for a future shaped by growth, innovation, and global connections.
Learn Today
Cabotage → The right to operate flights within a country by foreign airlines, previously restricted in Saudi Arabia.
General Authority of Civil Aviation (GACA) → Saudi government agency overseeing civil aviation policy, regulation, and infrastructure development.
Vision 2030 → Saudi Arabia’s national plan to diversify its economy and expand sectors like aviation and tourism.
CAGR → Compound Annual Growth Rate; the annual growth rate over a multi-year period used in forecasts.
IATA Aviation Day MENA → Annual event where the International Air Transport Association discusses aviation trends in the Middle East and North Africa.
This Article in a Nutshell
Saudi Arabia is rapidly transforming its aviation sector with major policy reforms, record passenger growth, and investments. Removal of cabotage boosts private flights, while infrastructure projects expand global connectivity. These changes support Vision 2030, creating economic opportunities and making the Kingdom a regional aviation hub for travelers and businesses.
— By VisaVerge.com
