Saudi Arabia Grants Air Arabia Alliance Operating License in Dammam
The General Authority of Civil Aviation (GACA) has issued an Air Operator Certificate (AOC) to the Air Arabia Alliance, paving the way for the launch of a new national low-cost carrier based at King Fahd International Airport in Dammam.
The certificate was granted after the alliance fulfilled all regulatory requirements and met the required standards for operational safety, security, and quality under the executive regulations of the Civil Aviation Law.
Sulaiman bin Saleh Al-Muhaimidi, GACA’s Executive Vice President for Aviation Safety and Environmental Sustainability, said the issuance of the operating license marked a significant step toward achieving the objectives of the Aviation Program, which forms part of the National Transport and Logistics Strategy. The strategy seeks to strengthen Saudi Arabia’s position as a global logistics center and international aviation hub.
“Launching Air Arabia’s operations from Dammam will help enhance competition and improve performance in the air transport market, while also stimulating economic and tourism activity in the Eastern Province and creating new local employment opportunities,” he said.
Al-Muhaimidi noted that the license followed the alliance’s successful completion of all required technical and regulatory stages and procedures, designed to ensure the highest standards of safety and operational compliance. He added that the move underscored GACA’s role as the regulator of the air transport sector and its efforts to foster an attractive environment for investment.
The new carrier is expected to expand Saudi Arabia’s air connectivity by serving 24 domestic and 57 international destinations. It is also projected to transport approximately 10 million passengers annually by 2030, in line with the objectives of Saudi Vision 2030.
GACA announced on July 20, 2025, that the Air Arabia Alliance—comprising Air Arabia Group, Nesma Group, and KAN Holding—had won the competition after submitting the best bid, with majority Saudi ownership.
The carrier is expected to create more than 2,400 direct jobs, contribute to gross domestic product, and support tourism and air connectivity in the Eastern Province, thereby advancing the targets of the Aviation Program.
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