Saudi aviation sector set to grow with new US partnerships boosting connectivity, investment

Arab News

06-02-2025

JEDDAH: Saudi Arabia's air transport sector is set for further growth as the Kingdom seeks new partnerships with US companies to strengthen connectivity, attract investment, and modernize its aviation infrastructure.
On Feb. 5, the Minister of Commerce Majid bin Abdullah Al-Qasabi met with senior executives from US air mobility firms and members of the global leadership community, Young Presidents' Organization, to explore cooperation and partnership opportunities.
In a post on his X account, Al-Qasabi said: 'Today I met with leaders from the US air mobility industry and members of the YPO global leadership community, where we discussed economic reforms in the Kingdom and opportunities for collaboration and partnership.'
This comes as Saudi Arabia plans to boost trade and investment with the US to around $600 billion over the next four years, as outlined by Crown Prince Mohammed bin Salman in a phone call with US President Donald Trump in January.
Trade between the Kingdom and the US reached $34 billion in 2023. The nation's leading exports to the US included mineral products and fertilizers, while machinery and mechanical appliances were among the top exports to Saudi Arabia from the North American country, according to the Saudi Press Agency.
Over the past year, the Kingdom's aviation sector has experienced remarkable growth, driven by a surge in passenger numbers, the expansion of its fleet with new jet acquisitions, and the forging of key global partnerships.
Valued at $1.2 billion in 2023, the industry is expected to grow at a compound annual rate of 8.88 percent from 2025 to 2029.
These developments are part of a larger vision to position Saudi Arabia as a leading global aviation hub and a premier travel destination.
As part of its Vision 2030 initiative, the Kingdom is investing billions of dollars to diversify its economy, strengthen its private sector, and enhance connectivity while solidifying its role in the international aviation landscape.
A key goal of this transformation is to deliver seamless travel experiences for 330 million passengers across more than 250 destinations and transport 4.5 million tonnes of air cargo by 2030.
The country is also prioritizing the development of transportation infrastructures, including airports and airlines, as several facilities, including Riyadh's King Khalid International Airport and Jeddah's King Abdulaziz International Airport, have undergone major upgrades to accommodate increasing passenger traffic.
King Salman International Airport is under construction in the Saudi capital, set to become one of the world's largest travel hubs. This development is a major step toward the country's goal of becoming a global destination for trade and tourism.
Riyadh Air, which flew its inaugural flight from Riyadh to Jeddah in September, aims to operate more than 200 aircraft.
Saudia remains the largest airline in the country, while budget carriers such as flynas and flyadeal continue to grow.
The Kingdom, moreover, is working to establish open skies agreements with various countries to enhance air connectivity and expand its aviation services.