Soaring High: How Saudi Arabia’s Aviation Sector is Powering Economic Transformation?

Saudi Arabia’s aviation sector is rapidly emerging as a cornerstone of the Kingdom’s economic diversification strategy. With strategic investments and global partnerships, the KSA is transforming its aviation landscape into a world-class ecosystem that supports trade, tourism, and technological innovation. 

In 2025, aviation contributes approximately $90.6 billion to the Saudi economy, which is about 8.5% of the national GDP, while directly employing over 141,000 people and supporting a total of 1.4 million jobs. 

As Saudi Arabia strengthens its position as a global transport hub, the aviation industry is poised to play an even larger role in shaping the nation’s future growth trajectory and encouraging investors to look for business setup in Saudi Arabia.

Saudi Arabia’s Aviation Sector – A Quick Overview

The Expanding Scope of Saudi Arabia’s Aviation Industry

Over the past few years, Saudi Arabia has emphasized on modernization of its aviation infrastructure. From expanding existing airports to launching new national airlines, these efforts are designed to accommodate rising passenger numbers and increasing international connectivity.

In the first half of 2025, Saudi airports handled more than 467,000 flights and welcomed around 66.7 million passengers, reflecting a steady rise in air travel demand. Cargo operations also saw strong momentum, with airports processing 575,000 tons of freight during the same period.

The Saudi government’s aviation vision is anchored in its broader Vision 2030 framework. By targeting to increase cargo capacity to 4.5 million tons by 2030, Saudi Arabia is positioning itself as a connectivity gateway of the MENA region.

Strategic Investments Powering Growth in Saudi Arabia’s

Central to this transformation is the government’s $100 billion aviation investment program, which focuses on three core areas: infrastructure, airline development, and human capital.

Announced at the Future Aviation Forum in Riyadh, the initiative underscores the Kingdom’s commitment to creating a modern, efficient, and competitive aviation ecosystem. Key priorities under this program include:

• Developing new airport facilities and expanding existing terminals to accommodate rising traffic. 

• Upgrading air traffic control and logistics systems to support seamless operations.

• Fostering public-private partnerships to attract foreign expertise and capital.

• Strengthening workforce training programs to build local capabilities in aviation management, maintenance, and engineering.

These investments are also unlocking opportunities for international investors seeking company formation in Saudi Arabia’s aviation sector.

Riyadh Air: The New Era of Air Connectivity

One of the most significant milestones in the Saudi aviation landscape is the establishment of Riyadh Air, the Kingdom’s new flagship carrier. Expected to begin commercial operations later this year, Riyadh Air represents Saudi Arabia’s ambition to compete with global aviation leaders.

By 2030, the airline plans to serve more than 100 destinations worldwide, connecting Saudi Arabia to key economic and tourism hubs across Asia, Europe, Africa, and the Americas.

It is also projected to contribute over $20 billion to national GDP and create approximately 200,000 direct and indirect jobs.

Investment Opportunities in Saudi Arabia

Saudi Arabia’s aviation ambitions extend well beyond government projects. The private sector plays a vital role in meeting the needs of a rapidly expanding air travel market. Private investors are increasingly participating in:

• Airport operations and ground handling services

• Aircraft leasing and financing

• Maintenance, repair, and overhaul (MRO) facilities

• Flight crew and technical training centers

• Aviation technologies and digital passenger systems

The government has adopted a collaborative model that encourages partnerships between public institutions and private enterprises to accelerate development, opening doors for business incorporation in the KSA.

Advancing Sustainability in Saudi Arabia’s Aviation Sector

Environmental sustainability has become a central theme in the Saudi aviation strategy. The General Authority of Civil Aviation (GACA) is implementing the Civil Aviation Environmental Sustainability Program (CAESP) in partnership with leading global manufacturers such as Airbus.

The initiative focuses on promoting cleaner technologies, improving fuel efficiency, and supporting research into alternative fuels.

By embedding sustainability principles into every stage of aviation development, Saudi Arabia aims to reduce emissions while fostering long-term industry resilience.

The Future of Air Mobility: Saudi Arabia as a Global Testbed

Beyond traditional aviation, Saudi Arabia is emerging as a hub for next-generation air mobility technologies. One of the most promising entrants in this space is FlyNow Aviation, an Austria-based company specializing in electric vertical take-off and landing (eVTOL) aircraft.

FlyNow has established operations in the Kingdom and plans to deploy between 1,000 and 4,000 electric air taxis by 2030. The company will initially focus on cargo transport before expanding into passenger services.

This collaboration is paving the way for a new “low-altitude economy” in Saudi Arabia, one that integrates air mobility into urban infrastructure and logistics systems.

Catalysts for Future Growth: Mega Events and Tech Innovations

Saudi Arabia’s upcoming mega events are acting as powerful catalysts for aviation and transport infrastructure development. The Riyadh Expo 2030 and FIFA World Cup 2034 are expected to attract millions of international visitors, spurring demand for efficient travel, logistics, and hospitality services.

To meet these needs, the KSA is accelerating digital transformation initiatives across the transport sector. Technologies such as biometric check-ins, automated baggage handling, and advanced air traffic systems are being deployed to improve efficiency and enhance passenger experience.

Building the Future of Aviation in Saudi Arabia

As Saudi Arabia continues to open its skies to the world, the aviation sector stands out as a defining pillar of national transformation. It brings together infrastructure development, private investment, digital innovation, and environmental responsibility under a unified vision for progress.

For foreign investors, the sector offers abundant opportunities for company formation in Saudi Arabia, right from aircraft leasing and logistics to sustainability solutions and advanced air mobility.

The time is right to explore investment opportunities in Saudi Arabia’s aviation industry as it has become a model of national reinvention through innovation, investment, and collaboration.

Ibtasam Aziz, Business Setup Consultant info@nimbusconsultancy.com