Saudi Arabia has taken another major step in expanding its air transport market. The General Authority of Civil Aviation granted an air operator certificate on September 14, 2026 to the consortium led by Air Arabia with Nesma Group and KUN Holding, clearing the way for a new Saudi low-cost carrier based at Dammam’s King Fahd International Airport.
A new national carrier based in Dammam
The AOC follows completion of the technical, regulatory, security and safety requirements set by the Saudi regulator. The project was awarded to the consortium in July 2025 as part of the kingdom’s broader aviation expansion strategy.
The carrier is expected gradually to build a network of 81 destinations, including 24 domestic and 57 international points. Its stated ambition is to operate up to 45 aircraft and carry around 10 million passengers a year by 2030.
Competition intensifies in the Gulf
The airline is intended to improve connectivity in Saudi Arabia’s Eastern Province and strengthen Dammam as a low-cost hub alongside the larger Riyadh and Jeddah markets. More than 2,400 direct jobs are envisaged.
Air Arabia brings experience from a low-cost model already deployed across several bases in the Middle East and North Africa. The exact commercial launch date and first routes had not yet been detailed at publication.
Sources
Saudi General Authority of Civil Aviation; Saudi Ministry of Transport; Air Arabia; Gulf News; Aviation Business Middle East.
Why the new carrier matters
A new low-cost airline can stimulate traffic and competition, but success depends on fleet availability, airport capacity, recruitment and the ability to build a sustainable network rather than simply add seats.
Related: Gulf aviation: why traffic remains under pressure, for the wider regional market context.
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