Saudi Arabia to Get a New Budget Carrier Based in Medina
Saudi Arabia’s aviation regulator has announced plans to launch a new budget airline based in Medina, marking another major step in the Kingdom’s ambitious Vision 2030 transformation. The General Authority of Civil Aviation (GACA) will issue a tender for the carrier “in a few months,” Executive Vice President Ali Rajab revealed at the Dubai Airshow 2025.
Key Takeaways
- Saudi Arabia to launch a new budget airline based in Medina.
- GACA will issue a tender for the carrier in the coming months.
- The Kingdom plans to connect with 250 destinations and triple passenger numbers.
- Over $100 billion in investments will fuel the aviation sector’s expansion.
Rapid Aviation Expansion
This announcement follows the recent launch of the new flagship carrier, Riyadh Air, which began daily flights between Riyadh and London last month. In July, GACA also confirmed that Air Arabia will establish a low-cost airline in Dammam with a fleet of 45 planes by 2030.
“The transformation that is taking place in Saudi Arabia’s aviation sector is unmatched,” said Rajab, outlining plans to connect the Kingdom with 250 destinations, triple passenger numbers, and establish the country as a major cargo and logistics hub.
Massive Investments and Fleet Growth
To achieve these ambitious goals, Saudi Arabia is enabling more than $100 billion in public and private investments. The country’s various airlines have more than 500 aircraft on order, including budget carrier flyadeal’s plan to expand its fleet from 45 to over 100 aircraft.
These plans reflect “the impressive growth of low cost carrier segment to meet Saudi market demand,” the GACA official stated.
Airport Infrastructure Development
On the infrastructure front, new master plans are underway to develop 100 million passenger mega hubs in both Riyadh and Jeddah.
“These projects are not just built on optimistic hopes. They are essential to meet the real growth that is happening now,” Rajab emphasized, noting that passenger traffic grew by 9% in the last three quarters, reaching 103 million passengers. Saudi airlines now carry 25% more passengers than pre-pandemic levels, representing one of the highest growth rates globally.
Challenges and Investment Opportunities
Despite the rapid expansion, challenges remain including aircraft delivery delays, staff shortages across skilled aviation areas, and IT disruptions posed by Artificial Intelligence.
GACA is actively seeking investors, with initiatives including airport privatization, new economic regulations to encourage competition and private sector participation, a general aviation strategy, and an air mobility roadmap.
“Companies across the Kingdom were undertaking expansion of equipment orders and commercial partnership to enable Saudi Arabia to connect the world,” Rajab told Dubai Airshow participants.
