Saudi Arabia’s aviation industry is a cornerstone of Vision 2030, contributing to economic diversification and propelling the tourism, infrastructure and logistics sectors as it positions itself as a leading global air transport hub. The Kingdom aims to nearly triple annual passenger traffic to 330m by 2030, expand connectivity to over 250 international destinations from its 29 airports and increase annual air freight capacity five-fold to 4.5m tonnes of cargo by 2030. These ambitious targets underscore the importance of the aviation sector in a broader strategy to reduce the Kingdom’s reliance on oil revenue.
Saudi Arabia’s aviation sector achieved significant growth in 2024, reaching over 128.6m passengers, according to the General Authority of Civil Aviation (GACA). Domestic air travel accounted for approximately 59.3m passengers, while international routes registered around 69.3m travellers, increases of 16% and 14% on the previous year, respectively. The uptick in air travel demonstrates broad-based demand across both market segments. This performance underscores robust expansion and progress towards Saudi Arabia’s connectivity ambitions. The increase in passengers was accompanied by a notable rise in flight operations, with 905,000 flights recorded in 2024, representing an 11% growth compared to 2023 and strengthening Saudi Arabia’s operational footprint across regional and international air networks.
Backed by $100bn from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), and the private sector, aviation is undergoing rapid transformation with substantial investment in airport infrastructure, fleet expansion and the launch of Riyadh Air, a new carrier established in 2023 which began operations in October 2025. According to the International Air Transport Association (IATA), in 2023 aviation contributed $90bn to the economy, representing 8.5% of total GDP, and supported 1.4m jobs, reflecting the growing importance of the sector.
Airport Infrastructure
Major airport expansions are under way in Riyadh and Jeddah, with the aim of transforming these cities into leading global connectivity hubs. The ongoing construction of Riyadh’s new King Salman International Airport aims to increase annual passenger capacity to 100m by 2030 and growing to 185m by 2050. The airport aims to create 103,000 jobs, process 3.5m tonnes of cargo and contribute $7.2bn annually to the Saudi economy by 2030. With six parallel runways planned, the airport would stand to be one of the world’s largest, once fully completed in 2030.
In Jeddah, the $31bn ongoing expansion of the King Abdulaziz International Airport aims to boost annual passenger capacity to 114m by 2031. Saudi Arabia’s expanding airport infrastructure is also driving air cargo growth, with total air freight volume exceeding 1.2m tonnes in 2024. This represented a 34% increase, positioning the Kingdom as a rising logistics centre, in addition to its passenger-centric activities. Alongside this cargo expansion, the country’s international connectivity network has broadened, with links to more than 170 global destinations as of 2025, enabling deeper ties with Asia, Europe, Africa and the Americas. This reflects ongoing efforts to diversify route portfolios and bolster Saudi Arabia’s attractiveness for business and leisure travel alike.
Global Reach
Global events like Expo 2030 and the 2034 FIFA World Cup are a catalyst for aviation, tourism and infrastructure growth. With Saudi Arabia aiming for tourism to contribute more than 10% of GDP by 2030, combined with significant investment in giga-projects, this is also driving demand for new dedicated airports and improved connectivity. In 2023, expansion work at Al Ula International Airport began to boost passenger capacity to 6m annual passengers, making it a gateway for cultural tourism, while the Red Sea International Airport opened in 2023 serves the growing luxury tourism segment.
Air Carriers
In Al Madinah, ongoing expansion work at the city’s airport aims to meet growing demand from pilgrim tourism and accommodate 18m annual passengers by late 2027. In 2019 the new NEOM Bay Airport became the gateway for NEOM, a futuristic mega-city development, with another three airports planned to serve the city. A dedicated carrier, NEOM Airlines, initially slated to launch late 2024, has yet to start operations as of end-2025.
Riyadh Air, a new luxury national airline, represents a key development in efforts to expand connectivity as the carrier targets 100 international destinations by 2030. It marks Saudi Arabia’s ambition to compete with regional airlines Emirates, Qatar Airways and Turkish Airlines. Riyadh Air, wholly owned by the PIF, is projected to add $20bn to Saudi’s Arabia’s non-oil GDP growth and create 200,000 jobs. Its launch allows government-owned airline, Saudia, to focus more on the religious market, alongside the Kingdom’s two low-cost carriers flynas and flyadeal.
With GACA now playing a solely regulatory role, Saudi Arabia hopes this reform will enhance competitiveness and attract foreign direct investment. GACA has transferred 25 of the Kingdom’s airports to private operator Matarat Holding Company, previously the Saudi Civil Aviation Holding Company. This will provide opportunities for the airports, which are being prepared for transfer to private ownership. In line with the Kingdom’s regulatory modernisation efforts, civil aviation authorities are also supporting advanced air mobility innovations. In December 2025, for example, GACA has signed partnerships to test electric vertical take-off and landing aircraft. Such collaborations aim to validate regulatory frameworks, support infrastructure development and prepare for the future of urban air mobility services in Saudi cities. This reflects an early commitment to embracing emerging aerospace technologies that could complement the country’s conventional aviation networks.
Multilateral Agreements
The aviation sector underpins Saudi Arabia’s strategy to become a global transport and logistics hub and to boost GDP contribution of both sectors to 10% by 2030. Saudi Arabia’s airports are targeting a 17% compound annual growth rate (CAGR) in air freight handling by 2030, supported by an increase in warehouse capacity to 6m tonnes and new special economic zones to attract major international logistics operators. To boost private investment for airport construction, the Kingdom will continue to leverage public-private partnership, however, a further dimension of the sector’s transformation lies in the liberalisation of air services and market access.
Saudi Arabia has expanded bilateral and multilateral air service agreements, enabling increased frequencies, new route launches and greater foreign carrier participation. The introduction of more flexible slot allocation mechanisms and transparent traffic rights frameworks has supported network growth at secondary airports as well as major centres. At the same time, reforms to ground handling, catering and maintenance licensing have widened participation by private and international operators, increasing service choice and operational resilience. Together, these measures have strengthened the aviation value chain and reduced structural barriers to market entry, supporting competition and service quality across passenger and cargo segments.
Ambitious Targets
As Saudi Arabia strives to become a leading international transit and cargo node, it faces significant competition to increase its market share with more established regional hubs – Dubai, Doha and Istanbul – and aviation powerhouses. Moreover, labour shortages of pilots and aviation technicians, alongside supply chain backlogs with aircraft manufacturers are likely to contribute to capacity constraints and project delays. Indeed, to reach the Kingdom’s ambitious annual target of 330m passengers requires sustained CAGR of over 20%, a pace rarely seen in major aviation markets.
Aviation transformation is also being shaped by a series of structural reforms designed to modernise governance, enhance operational efficiency and align the sector with global best practices. GACA’s Saudi Aviation Strategy, launched in 2022, outlines a comprehensive framework to support long-term sector sustainability, improve passenger experience and strengthen the Kingdom’s competitiveness as a global transit centre. Central to the strategy is the separation of regulatory and operational functions, with GACA now focused exclusively on regulation and oversight, while airport operations are increasingly transferred to specialised entities. This shift mirrors international models in markets like Singapore and the UK, where independent regulators have helped attract investment and improve service quality.
The Kingdom’s aviation ambitions are closely tied to the broader National Transport and Logistics Strategy (NTLS) that was launched in 2021. The NTLS positions air transport as a critical enabler of multi-modal connectivity. By integrating aviation with rail, maritime and road networks, Saudi Arabia aims to streamline cargo flows and reduce logistics costs, supporting its goal of becoming a top-10 global logistics hub by 2030. According to Emirates NBD Research, transport and hospitality have already been among the fastest-growing sectors in the Saudi economy, reflecting the early impact of these reforms. The NTLS also emphasises digitalisation, with investments in smart airport technologies intended to boost efficiency and reduce operational bottlenecks. These measures are designed to support high throughput, from digital cargo systems to advanced air traffic management, enabling seamless integration with rail, road and maritime networks. This digitalisation push aligns with broader Vision 2030 priorities to enhance logistics competitiveness.
Enhanced Connectivity
Fleet expansion is another pillar of the Kingdom’s aviation growth. Riyadh Air’s acquisition of aircraft, including Boeing 787s, underscores Saudi Arabia’s newest airline’s commitments to building a modern, fuel-efficient fleet capable of supporting long-haul connectivity. Saudi is also undergoing a major fleet renewal programme, with orders for wide-body and narrow-body aircraft to support both religious tourism and broader international expansion. These investments align with global trends identified by IATA, which highlight the growing importance of fleet modernisation in reducing emissions and improving operational performance. However, supply chain delays at major manufacturers such as Boeing and Airbus pose risks to delivery timelines, potentially affecting the pace of network expansion.
Beyond passenger and cargo volume, Saudi Arabia’s enhanced connectivity is manifest in evolving route dynamics. According to the Official Aviation Guide (OAG), a scheduling database, in February 2025 the Jeddah-Riyadh route saw one of the largest increases in seat capacity globally, while the Cairo-Jeddah international corridor ranked among the busiest worldwide. These developments underscore both domestic travel growth and the Kingdom’s rising prominence on the international stage.
Sustainability is emerging as a defining theme in the Kingdom’s aviation strategy, having committed to achieving net-zero emissions by 2060 and the aviation sector is expected to play a central role in this transition. Initiatives include exploring sustainable aviation fuel production, investing in carbon-efficient airport infrastructure and adopting green building standards for new terminals. Riyadh’s King Salman International Airport, for example, is being designed with renewable energy integration and advanced waste management systems, aligning with global benchmarks for sustainable mega-centres.
Momentum
Tourism diversification is another major driver of aviation growth. Established in 2019, the National Tourism Strategy aims to attract 150m visitors annually by 2030 with aviation as the backbone of expansion. New routes, increased frequencies and improved airport capacity are essential to supporting destinations such as Al Ula and NEOM. According to OAG’s Middle East aviation analysis in April 2025, Saudi Arabia was one of the world’s fastest-growing markets. This momentum is expected to accelerate as Riyadh Air enters the market and giga-projects reach development milestones.
Despite these advances, the Kingdom faces significant competitive pressures. Dubai, Doha and Istanbul have spent decades building globally recognised aviation ecosystems, with strong brand equity, extensive networks and established transit markets. Saudi Arabia’s strategy seeks to differentiate itself by leveraging its geographic location, large domestic market and growing tourism appeal. However, capturing a meaningful share of the global transfer market will require sustained investment in service quality, airline partnerships and passenger experience, areas where regional competitors already excel.
Human capital development is another critical challenge. The global aviation industry faces shortages of pilots, engineers and technicians, and Saudi Arabia need to address this in meeting long-term demand. In May 2025 IATA announced it is partnering with Saudi airlines, airports and academic institutions to train over 1000 aviation professionals, covering areas such as airport development, airline management, safety and ground operations. These training agreements are intended to help address capability gaps and equip the workforce with skills aligned to the sector’s rapid expansion.
Looking ahead, aviation is poised for substantial growth, but success will depend on effective strategy execution, timely infrastructure delivery and the ability to navigate global market dynamics. If these elements align, the Kingdom could emerge as one of the world’s most dynamic aviation markets, reshaping regional competition and reinforcing its position as both a global transport and logistics powerhouse.
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