Key Takeaways
• Saudi Arabia lifts cabotage restrictions for charter flights starting May 1, 2025, allowing foreign operators domestic routes.
• The move aims to create 35,000 jobs and turn private aviation into a $2 billion industry by 2030.
• A national charter air carrier license bidding runs April 13-May 21, 2025, encouraging new local and international entrants.
Saudi Arabia 🇸🇦 has taken a big step to change its aviation industry, opening its skies to international air charter operators. The government officially lifted cabotage restrictions for charter flight operations, with the new rules set to start from May 1, 2025. For the first time in history, this allows foreign companies to operate domestic charter flights within the Kingdom. This new policy, first announced in February 2025, is much more than just a rule change—it marks the beginning of a new chapter for aviation in Saudi Arabia 🇸🇦.
The General Authority of Civil Aviation (GACA), Saudi Arabia’s 🇸🇦 main aviation regulator, made the decision as part of its bigger plan to turn the country into a major global aviation hub. Since the announcement, several international operators that handle business and private jets have already started applying for permits, wanting to be among the first to offer flights within Saudi Arabia 🇸🇦.
This article will explain why this decision matters, who it affects, and what the future may look like for passengers, businesses, and the Kingdom’s growing aviation industry.
What Are Cabotage Restrictions and Why Is Saudi Arabia 🇸🇦 Lifting Them?
Cabotage restrictions are rules that stop foreign airlines from carrying passengers or cargo between two places within another country’s borders. For example, before this change, only airlines registered in Saudi Arabia 🇸🇦 could fly people from Riyadh to Jeddah on a domestic charter flight. Now, foreign operators can fly these routes too, as long as they get the needed approvals.
By lifting these restrictions, Saudi Arabia 🇸🇦 is opening its domestic market to foreign competition for the first time. The goal is to increase the quality of service, create jobs, and attract foreign investment.
A key quote from Imtiyaz Manzary, General Manager for General Aviation at GACA, underlines the importance of this shift: “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.”
Why Now? Saudi Arabia’s 🇸🇦 Bigger Plan
This move is part of Saudi Arabia’s 🇸🇦 General Aviation Roadmap. The roadmap, first introduced in May 2024, sets out a plan to completely reshape the private aviation sector by 2030. The most important goals include:
- Turning the private aviation sector into a $2 billion industry by 2030.
- Creating about 35,000 jobs across the sector.
- Changing regulations to allow more flexibility, including the removal of empty-leg restrictions (these are rules about how empty return flights are handled).
- Investing big in airports and other infrastructure all across Saudi Arabia 🇸🇦.
- Building six airports just for business aviation and nine special terminals for private flights.
- Improving services for maintenance and repair of private and business jets.
This is all part of a larger effort, known as Vision 2030, which aims to make Saudi Arabia 🇸🇦 a top global travel and business hub.
Economic Growth and Jobs
The removal of cabotage restrictions is expected to bring a wave of economic benefits. With more companies able to offer charter flight services inside the Kingdom, competition should increase, leading to better prices and more choices for customers.
More competition also means more jobs. It’s estimated that the changes introduced in the General Aviation Roadmap—including lifting cabotage restrictions—will create around 35,000 jobs by 2030. These will not just be in piloting or flight crew roles, but also in supporting industries like airport operations, maintenance, hospitality, and logistics.
This move can also attract more international investment. With the market now open for business, foreign aviation companies may set up offices, invest in local facilities, and look to build partnerships with Saudi 🇸🇦 firms.
Better Connectivity for Travelers
One of the main reasons for opening the market is to improve travel within Saudi Arabia 🇸🇦, especially for business and private travelers who depend on charter flight services.
Charter flights differ from regular airline services because they don’t follow strict timetables or routes. Instead, they are arranged to meet the specific needs of passengers, often providing more flexibility, speed, and privacy.
By letting international firms offer these services in Saudi Arabia 🇸🇸, it’s expected that there will be more options for travelers, especially as the Kingdom works to attract more business visitors and tourists.
Growth in the Private Jet Market
The timing of this policy change matches fast growth in Saudi Arabia’s 🇸🇦 private jet industry.
In 2024, the business jet sector saw a 24% jump in total flights, reaching 23,612 flights. Domestic jet flights climbed even higher, showing a 26% increase with 9,206 flights, while international flights also saw a rise of 15%, reaching 14,406 flights. These numbers show the growing demand for private and business aviation services in the country.
Removing cabotage restrictions will likely boost these figures even more, as international companies can now compete and offer new products and services.
Strategic Goals: Vision 2030 and Saudi Aviation Strategy
Saudi Arabia’s 🇸🇦 decision fits into its wider Vision 2030 and the Saudi Aviation Strategy, which focuses on:
- Making Saudi Arabia 🇸🇦 the leading aviation market in the Middle East by 2030.
- Attracting $100 billion in investment (from both private and public sectors) into airports, airlines, and support services.
- Tripling the number of passengers travelling each year.
- Creating two new global flight hubs that will connect Saudi Arabia 🇸🇦 to the rest of the world.
- Supporting 330 million passengers each year and linking to more than 250 international destinations by 2030.
By removing cabotage barriers, Saudi Arabia 🇸🇦 is sending a message that it wants to be a top choice for both business and leisure travelers.
More Competition in the Aviation Sector
With international charter flight operators allowed in the domestic Saudi 🇸🇦 market, private aviation will become more competitive. For travelers and companies, this means:
- More choices for flights.
- New and different pricing models.
- Fresh ideas and improved service standards.
- Less reliance on just a few local companies.
This competition is also good for local airlines, which will be encouraged to innovate and improve their offerings to keep up.
New Opportunities: National Charter Air Carrier License
As part of the changes, Saudi Arabia 🇸🇦 started a public bidding process in April 2025 for a national charter air carrier license. Private companies—local or international—can apply for a license that lets them provide non-scheduled, domestic charter flights.
The bidding period started on April 13 and lasts until May 21, 2025. This move, alongside the removal of cabotage restrictions, is designed to invite fresh players and new services into the domestic market.
This process is open and transparent, with the goal of picking the best-qualified operators to serve Saudi 🇸🇸 cities and regions that are growing fast.
Infrastructure Expansion
With more operators expected to enter, major spending on new infrastructure is planned. This includes:
- Six new airports exclusively for business aviation.
- Nine new terminals at existing airports, made just for private and business jets.
- Expanded repair and service facilities for private jets.
These projects mean the country will be prepared for an increase in flights, and passengers will enjoy modern, comfortable, and efficient facilities.
Regulatory Changes and Empty-Leg Restrictions
Aside from lifting cabotage restrictions, GACA is also working to remove empty-leg restrictions. In aviation, “empty-leg” flights are when a plane has to return without any passengers after dropping off clients. By relaxing these rules, operators can sell empty legs at a discount to other customers, making the business more efficient and lowering costs for travelers who can be flexible with their plans.
This, combined with relaxed cabotage rules, should make the private jet market much more dynamic, cost-effective, and passenger-friendly.
Potential Challenges and Concerns
While there are many possible benefits, some people have also raised questions about the new policy. These include:
- Will local operators be able to compete with larger foreign firms?
- Could there be new security concerns with more operators in the market?
- How will Saudi Arabia 🇸🇦 regulate safety and quality with more flights and new players entering the market?
GACA has said that all operators—local or foreign—must meet the Kingdom’s safety and operational standards before being allowed to run domestic charter flights.
Broader Impact: Economic and Social Benefits
Opening up the domestic charter flight market is seen as a way to help grow Saudi Arabia’s 🇸🇦 economy. The expected arrival of international operators and higher competition can drive prices down, improve service, and give travelers more choices. At the same time, this move supports other goals like:
- Creating jobs in aviation, airports, hotels, and support services.
- Attracting more high-skilled workers and training local talent.
- Boosting business travel and making the country more attractive for global investors.
- Encouraging tourism and making it easier for people to travel to more cities in Saudi Arabia 🇸🇦.
Global Context and Industry Standards
Lifting cabotage restrictions is rare—many countries keep these rules to protect their own airlines. By opening up, Saudi Arabia 🇸🇦 is taking a bold step that could encourage other countries in the region or beyond to think about similar reforms.
International best practices and standards—such as those set by the International Civil Aviation Organization (ICAO)—are expected to be followed. Saudi Arabia 🇸🇦 says it wants to make sure its aviation sector meets or exceeds these standards as it grows.
How This Affects Immigrants, Employers, and Students
This policy shift affects many groups. For immigrants and foreign workers, a bigger aviation sector means more jobs and more chances for skilled employment. Employers will find it easier and faster to arrange business travel within Saudi Arabia 🇸🇦. For students, especially those from overseas, better flight options can make it simpler to visit family or travel between cities for studies or internships.
Next Steps and How to Stay Updated
With the first flights expected to start under the new rules from May 2025, foreign and local companies are now preparing their applications. GACA is guiding operators through the application and licensing process, making sure all safety and service requirements are met. For those interested in following these changes, updates and official details are available through the General Authority of Civil Aviation (GACA) website, which posts the latest news on permits, regulations, and policy updates.
VisaVerge.com’s investigation reveals that this overhaul is one of the most ambitious aviation reforms in the Middle East. The site explains that international interest is high, and that the move could set an example for other countries that want to increase their aviation market competitiveness.
Summary
Saudi Arabia 🇸🇦 is changing its aviation rules in a big way by lifting cabotage restrictions for charter flight operations. Starting May 1, 2025, local and foreign charter flight companies will be able to offer flights within the Kingdom, creating more jobs, improving connectivity, and increasing competition. This is just one part of a much larger plan to reshape the aviation industry by 2030, attract $100 billion in investment, and make Saudi Arabia 🇸🇦 a major global hub.
The change will benefit travelers, businesses, and the economy overall. While there will be challenges to overcome, Saudi Arabia’s 🇸🇦 open approach is expected to encourage new standards in the region, helping both the local and international aviation communities grow.
For more details, keep an eye on official sources like GACA’s website for the latest updates as Saudi Arabia 🇸🇦 prepares for this bold new chapter in its aviation story.
Learn Today
Cabotage Restrictions → Laws preventing foreign airlines from operating domestic flights or transporting passengers entirely within another country’s borders.
Charter Flight → A flight arranged to meet specific passenger needs, not following regular airline schedules or publicly available routes.
General Aviation Roadmap → Saudi Arabia’s strategic plan to expand private and business aviation, attract investment, and create jobs by 2030.
Empty-Leg Flight → A return flight for a charter jet that is empty of passengers, often available at discounted rates.
Vision 2030 → Saudi Arabia’s overarching strategy to diversify its economy and become a leading global travel, business, and investment hub.
This Article in a Nutshell
Saudi Arabia is revolutionizing its aviation sector by lifting cabotage restrictions for charter flights effective May 1, 2025. This opens domestic skies to global operators, creating jobs and boosting competition. The ambitious move aligns with Vision 2030, aiming to transform the Kingdom into a major international travel and business hub.
— By VisaVerge.com
