Saudi Arabia's newest budget airline will be based in Dammam
The new airline will be backed by UAE’s Air Arabia
Saudi Arabia has just approved an impressive new budget airline to upgrade transport in the Eastern Province. The newest budget airline in Saudi Arabia will be a joint venture between UAE-based budget airline Air Arabia, KUN Investment Holding, and Nesma.
Set to be headquartered at Dammam’s King Fahd International Airport, the new airline is expected to operate international and domestic routes.
H.E. the President of #GACA, during the inauguration of the Master Plan for @KFIAirport, announces AirArabia Alliance as a new national low-cost carrier based at King Fahd International Airport in Dammam. pic.twitter.com/gKmoYXKEsd
— هيئة الطيران المدني (@ksagaca) July 20, 2025
According to the General Authority of Civil Aviation, the new budget airline aims to serve 24 domestic and 57 international destinations, transporting around 10 million passengers annually, according to Arab News.
The operations will be supported by a fleet of 45 aircraft and are projected to create more than 2,400 direct jobs, boosting the local economy.
The move aims to enhance air connectivity in the Eastern Region, increase seat capacity, and offer more competitive choices for passengers.
The announcement comes as part of broader efforts to transform Saudi Arabia into a regional aviation hub. The country plans to handle 330 million passengers and transport 4.5 million tons of air cargo annually by 2030.
The governor of the Eastern Province, Prince Saud bin Naif bin Abdulaziz, has also inaugurated the master plans for King Fahd International, Al-Ahsa, and Al-Qaisumah airports, alongside a new corporate identity for Dammam Airports Co. That’s not all, though; the governor also launched a SR1.6 billion ($426 million) development package covering 77 infrastructure projects to improve passenger experience and airport services.
Visit: airarabia.com
Images: Getty
