Saudi Arabia’s General Authority of Civil Aviation (GACA) has issued an air operator certificate to Air Arabia Alliance, the kingdom’s new low-cost national carrier, clearing the airline to begin operations from King Fahd International Airport in Dammam, the authority said on September 14.
The certification opens a new chapter in Saudi Arabia’s domestic budget aviation market, where Air Arabia Alliance will compete with flyadeal, the existing low-cost carrier owned by Saudia.
The decision to base the new airline in Dammam is intended to strengthen air connectivity in the Eastern Province, which GACA has identified as relatively underserved compared with Riyadh and Jeddah. The move is also designed to support the aviation and tourism objectives of Saudi Vision 2030.
“The start of Air Arabia Alliance’s operations from Dammam will contribute to strengthening competition and improving performance in the air transport market, alongside boosting economic and tourism activity in the Eastern Province and generating new local job opportunities,” Captain Suleiman bin Saleh Al-Muhaimeed, GACA’s vice-president for aviation safety and environmental sustainability, said, according to Emerging Travel.
Al-Muhaimeed said Air Arabia Alliance had completed all technical and regulatory requirements needed to secure the certificate, describing the milestone as evidence of GACA’s efforts to create an attractive environment for investment in the aviation sector.
The carrier is expected to serve 24 domestic and 57 international destinations and transport about 10 million passengers annually by 2030.
GACA selected Air Arabia Alliance as the winning bidder for the new airline on July 20, 2025, following a competition in which it was judged to have submitted the strongest proposal with Saudi-majority ownership.
The consortium comprises UAE-based low-cost carrier Air Arabia, Saudi conglomerate Nesma Group and Kun Investment Holding.
The start-up is expected to create more than 2,400 direct jobs and contribute to economic growth in the Eastern Province, as part of GACA’s broader aviation development programme and Saudi Arabia’s Vision 2030 targets.
By Tamilla Hasanova
