Saudi Arabia’s aviation regulator has granted an Air Operator Certificate to an Air Arabia-led consortium, clearing the way for a new low-cost airline based at King Fahd International Airport in Dammam.The General Authority of Civil Aviation issued the certificate on September 14 after the carrier completed regulatory and operational requirements covering safety, security and operating quality. The approval moves the project from the licensing phase towards eventual launch, although an inaugural service date was not announced.
The consortium brings together Air Arabia Group, Nesma Group and KUN Holding Company. GACA selected the group in July 2025 as the winning bidder to establish and operate the new national budget airline, with majority Saudi ownership.
GACA said the carrier is planned to serve 24 domestic and 57 international destinations by 2030, giving it a network of 81 routes from Dammam and the Eastern Province. It is expected to handle about 10 million passengers annually by the end of the decade and create more than 2,400 direct aviation jobs.
Sulaiman bin Saleh Almuhaimedi, GACA’s executive vice-president for aviation safety and environmental sustainability, said the certificate followed completion of required technical and regulatory stages. He said the new airline would increase competition in the air transport market, improve performance and support trade, tourism and employment in the Eastern Province.
The certificate was handed over in the presence of Transport and Logistic Services Minister and GACA chairman Saleh bin Nasser Al-Jasser and GACA President Abdulaziz bin Abdullah Al-Duailej.
The regulator described the approval as part of its effort to expand airline capacity and attract investment while maintaining safety and operational compliance. The project also gives Dammam a new locally based low-cost operator at a time when Saudi Arabia is expanding airport capacity and seeking a wider spread of airline activity beyond its largest hubs.
Air Arabia, based in Sharjah, brings the operating platform and low-cost airline experience to the venture, while Nesma Group and KUN Holding provide Saudi participation. When the consortium won the tender last year, it said the airline would use an efficient operating model and support tourism, employment and commercial activity linked to aviation.
The partners initially outlined a fleet target of 45 aircraft by 2030. They also said the Dammam airline would focus on improving domestic and international connectivity for the Eastern Province, one of the kingdom’s main industrial and commercial regions.
The award of an Air Operator Certificate is a central regulatory step for an airline because it confirms that the operator has demonstrated the organisation, systems and procedures required to conduct commercial air services under the applicable civil aviation rules. GACA said the Dammam carrier met requirements under the executive regulations of the Civil Aviation Law.
The new airline forms part of a broader push to increase competition among Saudi-based carriers. Saudia, flynas and flyadeal already operate extensive domestic and international networks, while Riyadh Air is being developed as a national carrier. The Dammam project is distinct in being designed around the Eastern Province and a low-cost model.
Saudi Arabia’s aviation strategy targets 330 million passengers a year by 2030, connectivity to more than 250 destinations worldwide and annual air-freight capacity of 4.5 million tonnes. GACA has said the strategy is intended to support tourism, logistics and non-oil economic activity while drawing private investment into airlines, airports and aviation services.
King Fahd International Airport is central to the new carrier’s plans. The airport serves Dammam and the Eastern Province, including major business and energy centres, and its role as the airline’s operating base is expected to give the consortium a platform for both domestic links and medium-haul international services.
The consortium has not yet disclosed the carrier’s commercial name, initial route list, launch schedule or detailed fleet deployment. Those details are expected to determine how quickly the airline can scale towards its 2030 passenger, aircraft and destination targets.
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