New Low‑Cost Airline Set to Lift Dammam's Aviation Prospects
The airline forms part of the kingdom's broader National Transport and Logistics Strategy under Vision 2030, which seeks to diversify the economy, boost non‑oil revenues, and position Saudi Arabia as a global aviation hub. Officials emphasised that improved seat capacity from the Eastern Province will provide travellers with more competitive options and strengthen connectivity in both regional and global markets.
Air Arabia brings extensive low‑cost carrier experience to the alliance. Founded in 2003 and headquartered at Sharjah, UAE, the airline is the region's first and largest budget operator, currently managing a network spanning over 80 destinations, with more than 170 routes when including its subsidiaries. Nesma Group, a diversified Saudi conglomerate active in construction, hospitality and aviation services, partners through Nesma Airlines—a regional operator established in 2007. KUN Investment Holding contributes capital and local expertise, complementing the strategic framework.
ADVERTISEMENT
The consortium's ambitions align with enhancements unveiled in Dammam's aviation infrastructure. Governor Prince Saud bin Naif bin Abdulaziz unveiled integrated development plans for King Fahd International, Al‑Ahsa and Qaisumah airports, along with a SAR 1.6 billion package to modernise services, install electronic gates and boost passenger convenience. King Fahd International handled 12 million passengers in 2024—a 15 percent increase over the previous year—and posted record volumes, underscoring the region's growing appeal.
The new airline will also enhance competition against existing carriers. Saudi Arabia already hosts low‑cost operators such as flynas and flyadeal, both headquartered in Jeddah and operating from Dammam. Flynas currently fields 65 aircraft across 88 destinations, while flyadeal, a subsidiary of national carrier Saudia, operates 42 aircraft. The entry of a Dammam‑based low‑cost airline is expected to intensify competition on price and route coverage, particularly along under‑served domestic and international sectors.
Air Arabia's network strength is a key asset. The carrier has built a proven operational model via its hubs in Sharjah, Abu Dhabi, Morocco, Egypt and Pakistan, which may accelerate launch efficiency in Saudi Arabia. CEO Adel Al Ali and Nesma Group President Faisal Bin Saleh Al‑Turki affirmed that the partnership will deliver reliable value‑driven travel, support economic growth, and bolster national employment in Eastern Province and beyond.
Challenges will include ramping up fleet acquisition, training, infrastructure integration and regulatory alignment. Airline licence formalities, expected to be completed next year, will pave the way for aircraft procurement ahead of the projected 2026 launch. Operational rollout will require close coordination with authorities at King Fahd International—including the new Dammam Airports Co. corporate identity and enhanced gate systems—to ensure seamless passenger experience.
The introduction of a Dammam‑centric budget airline dovetails with the broader objective of accommodating 330 million passengers and 4.5 million tonnes of cargo annually across Saudi airports by 2030. Infrastructure investments and strategic alignment across multiple regions aim to imprint Eastern Province as a key aviation hub, reinforcing national goals of economic diversification and global logistics prominence.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
3 hours ago
- Al Etihad
UAE's Calidus concludes successful participation at IDEF 2025 in Istanbul
27 July 2025 20:02 ISTANBUL (WAM)UAE-based Calidus Holding Group has concluded its successful participation in the 17th edition of the International Defence Industry Fair (IDEF 2025), held at the Istanbul Expo Centre from July 22 to 27, as part of the UAE National Pavilion, supervised by Tawazun Council for Defence Enablement (Tawazun).The Calidus stand witnessed strong engagement from senior officials, military leaders, and official delegations from around the world, who praised the advanced capabilities of the UAE's defence industry and commended Calidus products for their reliability, precision, and competitiveness on regional and global the exhibition, Calidus signed several agreements and memorandums of understanding, including an MoU with Türkiye's Presidency of Defence Industries (SSB) to support supply chain collaboration and industrial localisation programmes, as well as an MoU with CTech to explore joint satellite communications and data link projects for military Director and CEO of Calidus Holding Group, Dr. Khalifa Murad Al Blooshi, stated that the participation significantly boosted the company's international presence and showcased the technological innovations of the UAE's defence sector, particularly in AI-driven and next-generation defence solutions, all designed and manufactured exhibited a range of advanced solutions, including the MATV armoured combat support vehicle integrated with the Al Hedaa missile launcher, six variants of the Al Hedaa system, models of the B-250 light attack and B-250T advanced trainer aircraft, a mock-up of the CLS military vehicle production facility, and cutting-edge electro-optical and infrared company also presented its locally manufactured military chassis, built for high-load and extreme-condition performance. The company emphasised that its IDEF 2025 participation aligns with its broader vision to strengthen the UAE's role as a key player in the global defence landscape through technology localisation, strategic autonomy, and regional and international market expansion.
Zawya
6 hours ago
- Zawya
Zain KSA reports 28% increase in H1 net profit
With revenues Reaching SAR 5.344 Billion Zain KSA, a leading provider of telecommunications and digital services in Saudi Arabia, announced its financial results for the first half of 2025. The Company reported a 5% year-on-year growth in total revenues to SAR 5.344 billion. This drove a 28% y-o-y surge in net profit, reaching SAR 220 million for the period. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose by 7%, to SAR 1.664 billion. These results reflect the Company's sustained positive financial performance, driven by revenue from growing business operations and ongoing investments that aim to deliver a superior user experience. The sustained growth stems from Zain KSA's expanding portfolio of 5G products, solutions, and services. This is also a result of the broader reach of 4G and 5G networks across the Kingdom, as well as a higher demand for direct consumer offerings, particularly through the all-digital service Yaqoot. The Company continues to see strong performance from its investments in adjacent markets, including FinTech, led by the increasing demand for services offered by Tamam. Commenting on the results, Eng. Saad bin Abdulrahman AlSadhan, CEO of Zain KSA, stated: 'Innovation and progress centered on national and human development are at the heart of Zain KSA's strategy. Our commitment is to support nationwide progress and enrich the lives of people, and we place these priorities at the forefront of every strategic investment, in line with Saudi Vision 2030's economic, social, and digital goals.' AlSadhan added: 'Our H1 2025 financial results reaffirm the continued growth of our operations and financial metrics, anchored in sustainability and effective governance. This performance has further cemented our position as the telecoms and digital services provider of choice in the Kingdom. During Hajj season 1446H, Zain KSA demonstrated its digital leadership by enhancing pilgrims' experiences through AI-powered services, delivering a truly exceptional digital journey backed by our advanced 5G infrastructure. We began deploying 5G Stand-Alone network over the 600 MHz low band and successfully extended 4G and 5G coverage within Riyadh's Abu Bakr Al-Siddiq Tunnel, one of the longest tunnels in the Middle East.' 'Within Zain KSA, we remain focused on building a healthy, sustainable workplace that prioritizes employee wellbeing and supports professional growth. Our efforts were honored at the Council of Health Insurance (CHI) Excellence Awards 2024, where we received two accolades for Best Employer Health & Wellbeing Program for Large Enterprises and Health Awareness Excellence for Large Enterprises.' Committed to delivering a best-in-class digital experience, Zain KSA has launched a pioneering service enabling visitors to Saudi Arabia to register and verify their SIM cards through Yaqoot, using the Ministry of Interior's 'Absher' app authentication service (WTHIQ). This innovative integration makes Yaqoot the first digital telecom service in Saudi Arabia to offer online SIM verification.
Middle East Eye
7 hours ago
- Middle East Eye
IMF warns against Egypt's military dominance over economy
In arguably its bluntest report to date, the International Monetary Fund (IMF) warned that Egypt's military-controlled economic model is crippling private sector growth, deterring investors and keeping the country in a cycle of debt and underperformance. In its long-delayed staff report for the fourth review of Egypt's loan programme, the IMF noted: 'The economic landscape is dominated by public-driven investments, an uneven playing field, and state-owned entities, including military ones.' The IMF further warned that military-owned firms continue to enjoy 'preferential treatment', including tax breaks, cheap land and privileged access to credit and public contracts. Such privileges, the 202-page report notes, have continued to sideline private sector competitors and distort the market. While Cairo has taken some economic steps - such as floating the pound, slashing subsidies and launching a state ownership policy - the IMF says progress has been 'uneven and slow', leaving many of the country's key problems unresolved. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters Public debt remains high, and Egypt's external debt is expected to rise from $156.7bn to $180.6bn in the current fiscal year, deepening the country's financial strain, according to the IMF. Meanwhile, everyday Egyptians are bearing the brunt, grappling with soaring inflation, declining ages and a shrinking safety net, the report suggests. A flawed economic model The military's grip on Egypt's economy is not new. It dates back to the 1950s, following the July 1952 revolution, when army officers overthrew the monarchy. But the generals' economic role expanded significantly after the 2011 uprising, when the Supreme Council of the Armed Forces (SCAF) assumed control following the ouster of long-time autocrat Hosni Mubarak. The situation even worsened under President Abdel Fattah el-Sisi, who technically assumed power in 2013 after he had led a coup that removed Egypt's first democratically elected president, Mohamed Morsi. Egypt's Sisi accused of 'giving away' strategic Red Sea land of Ras Shukeir after decree Read More » One of the IMF's central concerns is the ongoing expansion of military-run businesses in non-defence sectors, operating behind closed doors, with little transparency or public oversight. The military has steadily expanded its role in construction, agriculture and other civilian sectors, justifying its reach by claiming to deliver major national projects and secure economic stability. But experts argue that this flawed model pushes out the private sector and reinforces a non-transparent economic elite. 'Military involvement in the country's economy undermined competition, discouraged private investment, and distorted market signals, creating a dual economy - one transparent and risky - and the other opaque and protected,' a Cairo-based economist told Middle East Eye on condition of anonymity for security concerns. The expert's view is echoed by a construction contractor in the Mediterranean city of Alexandria, who also asked to remain anonymous for similar reasons. 'Military involvement in the country's economy undermined competition' - Egyptian economist 'Before the army stepped into our industry, I used to have three projects running in and around Alexandria,' he told MEE. 'Now, I'm lucky if I get one a year. We just can't compete with the pricing or timelines of military-backed companies.' In 2019, Mohamed Ali, a former contractor now living in self-imposed exile in Spain, blew the whistle on the military's business dealings, sharing explosive behind-the-scenes details in a series of viral videos and social media posts. His revelations sent shock waves through Egypt, sparking rare public outrage and calls for accountability in a country where questioning the military is often taboo. In an exclusive interview with MEE, Ali revealed that he received state-funded projects without contracts or oversight. His claims, supported by the IMF's latest report, painted a picture of a shadow economy that avoids scrutiny. The IMF's latest report reflects those alarms, reinforcing long-standing concerns about secrecy and privilege in Egypt's economic system. 'While some private sector representatives reported improved access to foreign exchange,' the IMF noted, 'others flagged an uneven playing field in key sectors.' The report also pointed to 'gaps in transparency and accountability' in both state-run and military-affiliated companies. According to the report, military-owned and state-run firms benefit from tax exemptions, access to prime land and cheap labour, all while operating with very limited transparency about their finances. In industries like cement, steel, and marble and granite, military firms control up to 36 percent of the market, making it nearly impossible for genuine private competition to develop. An earlier section of the report noted that the 'reallocation of public spending towards military-related or high-profile projects diverts resources from more productive uses, and undermines long-term growth potential', cautioning that ongoing public sector control can discourage foreign investment and crowd out domestic enterprise. Credibility at stake The fifth and sixth reviews of Egypt's $8bn loan programme have now been merged and delayed, another sign of the IMF's mounting frustration. The delay highlights Cairo's slow progress on key commitments, especially privatising state and army-run companies and reducing fiscal vulnerabilities that still burden the economy. As part of its commitments to the IMF, the Egyptian government has promised to sell stakes in 11 state-owned enterprises by mid-2027. Four of these companies are military-owned, including Wataniya Petroleum and Safi, a bottled water company that has faced long-standing criticism for its lack of financial transparency. IMF more than doubles Egypt bailout deal to $8bn following devaluation Read More » The plan aims to increase private sector involvement and restore investor confidence. However, progress has been slow. Both Wataniya and Safi have been moved to the Sovereign Fund of Egypt to prepare them for sale. Two other military-affiliated companies - ChillOut, a fuel station chain, and Silo Foods - a large food processing business, are also set to be offered to local and foreign investors as part of the state's broader privatisation effort. While Gulf investors have consistently expressed interest in buying these military-run businesses, the deals have faced continuous delays, despite numerous promises and public statements from Egyptian officials. No clear timeline has been established, which raises questions about the government's willingness and ability to fulfil its privatisation commitments. Despite Egypt's shift to a flexible foreign exchange rate in March 2024, commended by the international lender, the report made it clear that Cairo must keep up with reforms to secure the next $2.5bn loan tranche. 'Preserving exchange rate flexibility and rebuilding credibility in the monetary framework will be critical,' the IMF explained. With public debt soaring and economic inequality deepening, the IMF's warning comes at a crucial moment. 'Unless exclusive benefits offered to military and state firms are lifted and transparency is ensured, private businesses will continue to hold back. The IMF's message is crystal clear. Sustainable growth requires fair play, not to protect a powerful few who avoid public scrutiny,' the economist concluded.
