Saudi Arabia to boost ICT sector with multi-billion-dollar firms in 2025

Saudi Arabia to boost ICT sector with multi-billion-dollar firms in 2025
Saudi Arabia is aiming to boost the technology sector’s contribution to GDP from 1 percent to 5 percent by 2030. Shutterstock
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Updated 03 December 2024
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Saudi Arabia to boost ICT sector with multi-billion-dollar firms in 2025

Saudi Arabia to boost ICT sector with multi-billion-dollar firms in 2025

RIYADH: Saudi Arabia is set to launch two multi-billion-dollar companies by the end of 2025 as part of plans to boost its communications and information technology sector.

The new tech firms are among a range of initiatives set out in the Ministry of Finance’s budget report, which also includes plans to launch a Saudi satellite for space weather research under the Artemis 2 mission. 

Under the Kingdom’s economic diversification plan Vision 2030, Saudi Arabia is aiming to boost the technology sector’s contribution to GDP from 1 percent to 5 percent by the end of the decade.

The budget report also revealed a SR42 billion ($11.2 billion) allocation to the infrastructure and transportation sector for 2025. 

The sector’s main functions include the development of roads, ports, airports, and real estate. 

It also encompasses communications, information technology, data and artificial intelligence, and digital government. Additionally, it oversees postal services, space initiatives, and industrial cities. 

Digital and infrastructure developments 

The government is set to enhance data management by advancing the National Data Index, promoting responsible artificial intelligence adoption, and expanding the National Data Bank. 

Smart city initiatives focused on safety and sustainability are also being prioritized. 

In transportation, planned developments include new air carrier licenses for Dammam and Riyadh Airlines, expanded public transport services, and six new logistics zones at Saudi ports. 

These efforts align with the Kingdom’s Vision 2030 strategy to create a modern, efficient, and innovation-driven economy.  

The Kingdom is building a thriving digital economy by adopting advanced technologies, with data and AI as key enablers. 

By fostering research, development, and innovation, and forming strategic global partnerships, Saudi Arabia aims to cultivate entrepreneurship and deliver groundbreaking solutions, establishing itself as a hub for technological excellence and sustainable development. 

Central to this transformation is the Kingdom’s commitment to creating a business-friendly climate through a range of initiatives. 

The Regional Headquarters Program offers compelling incentives, including a 30-year tax exemption, to attract global companies to set up their regional offices in Saudi Arabia. 

This has significantly boosted the country’s foreign direct investment. In 2023, FDI inflows reached SR96 billion, according to the Ministry of Investment, exceeding the National Investment Strategy target of SR83 billion by 16 percent. 

As a percentage of nominal GDP, FDI stood at 2.4 percent, aligning with the NIS goal. 

The surge in investment licenses further highlights this growth, with the Kingdom issuing 3,810 licenses in the third quarter of 2024 — a 73.7 percent increase compared to the previous year. 

Notably, information and communication technology licenses saw a 68 percent rise, underscoring the Kingdom’s strong emphasis on advancing its digital economy and technology sector. 

Digital economy and space milestones 

The Ministry of Finance report noted key recent achievements in the digital economy, including Saudi Arabia ranking sixth globally, and second among G20 countries, in the UN E-Government Development Index.

The Kingdom also ranked second among G20 nations in the ITU’s ICT Development Index 2024, which measures global progress in digital inclusion and infrastructure. 

This index tracks global progress in digital inclusion and infrastructure, guiding policy and investments in technology, and reflects countries’ performance in digital adoption and connectivity. 

Other achievements included 15 companies graduating from the Space Tech Entrepreneurship Incubation Program, attracting over SR41 billion in investments. The National Semiconductor Hub was also launched, focusing on localizing semiconductor technologies and fostering advanced education collaborations. 

Many nations are harnessing space technology to drive digital innovation and economic growth. Saudi Arabia, as highlighted by the World Economic Forum, is leveraging space exploration to diversify its economy and build a technology-driven industry. 

In a historic milestone, Saudi astronauts journeyed to the International Space Station for the first time in 2023, reflecting the Kingdom’s growing focus on space. 

Under the Vision 2030 initiative, Saudi Arabia has committed $2 billion over the next decade to developing its space sector. 

This investment is set to advance scientific research, enhance national security, and accelerate the Kingdom’s transition from a resource-dependent economy to a knowledge-based one. 

Saudi Arabia has also announced plans to strengthen ties with NASA and global partners to advance space-related industries, digital innovation, and scientific collaboration. 

During a recent visit to the US, Saudi Space Commission Chairman Abdullah Al-Swaha discussed strategic partnerships with NASA Administrator Bill Nelson and explored investment opportunities in space, AI, and the digital economy with US leaders. 

AI and research advancements 

The Kingdom made significant strides in data analytics, integrating data from 27 government systems into a centralized data lake. The Arabic-language generative AI model “ALLaM” received global recognition, ranking first in its category, enhancing Arabic AI capabilities. 

This model was developed to process and understand Arabic. It aims to enhance the capabilities of artificial intelligence in the language, making it more accessible and effective across various applications. 

It was ranked first globally in its category by the Arabic Massive Multitask Language Understanding standard evaluation, a leading benchmark for Arabic language models. 

During the Hajj season, smart solutions like Basier and Sawaher, along with AI-powered cameras, were deployed to improve crowd management and ensure pilgrim safety. 

Additionally, the Kingdom reinforced its position as a global AI innovation hub by hosting the third Global AI Summit to foster international collaboration. 

Research, development and innovation 

The Open Access National Gateway was launched to provide scientists and researchers access to advanced infrastructure and over 1,000 laboratories across 30 agencies. 

The transportation and logistics sector saw a 6.4 percent annual growth in GDP in the first half of 2024, with over SR200 billion in investment contracts signed to enhance services and partnerships. 

Saudi Arabia also secured leadership roles in several international organizations, bolstering its global presence as a logistics hub. This includes hosting the UNCTAD Global Supply Chain Forum in 2026, chairing the Arab Civil Aviation Organization, and securing a seat on the International Maritime Organization Council. 

Additionally, the Future of Aviation Forum 24 was held in Riyadh, bringing together global aviation leaders and securing investment offers worth SR375 billion for the aviation sector. 

Transportation and logistics 

During the Hajj season of 2024, several eco-friendly and modern transportation initiatives were implemented to improve services for pilgrims. 

These included self-driving vehicles, a self-driving air taxi experience, and the use of rubberized and cooling asphalt at holy sites. 

Additionally, aircraft seat capacity for pilgrims was increased to accommodate over 24 million passengers, while the Haramain Train saw a 42 percent rise in passengers, serving more than 1.07 million pilgrims. 

Other initiatives included the launch of the Passengers with No Bags program, performance-based contracts for road network maintenance, and the establishment of the Unified Law for International Land Transport among GCC countries. 

The Kingdom also launched five travel lounges at major airports and expanded Abha International Airport. 


Pakistan ports face export backlog as India’s transit ban forces shipping lines to reroute

Pakistan ports face export backlog as India’s transit ban forces shipping lines to reroute
Updated 32 sec ago
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Pakistan ports face export backlog as India’s transit ban forces shipping lines to reroute

Pakistan ports face export backlog as India’s transit ban forces shipping lines to reroute
  • Shipping companies launch special feeder services via Colombo to handle cargo from Pakistan
  • Some international shipper are imposing up to $800 surcharge per container amid the situation

KARACHI: Pakistan is facing a “big backlog” of export containers at its ports after international shipping lines began bypassing the country, following India’s decision to block vessels carrying Pakistani cargo, officials and shipping documents confirmed to Arab News on Friday.
The disruption has led several global shipping companies to impose emergency operational surcharges on Pakistani cargo, citing the “significant impact” of regional geopolitical tensions on their operations.
The move is expected to raise shipping costs and, ultimately, consumer prices in Pakistan, a country of over 240 million people already grappling with economic challenges.
“The European shipping services are bypassing Pakistan ports after India’s ban on the transit of ships loaded with cargoes from Pakistan,” said Syed Tahir Hussain, Secretary General of the Pakistan Ship Agents Association (PSAA).
He accused New Delhi of attempting to undermine Pakistan’s recovering economy, which has shown signs of stabilization under the International Monetary Fund’s (IMF) $7 billion loan program.
PSAA Chairman Mohammed A. Rajpar called India’s move “unwarranted” and against international conventions, saying it was designed to discourage shipping lines from calling at Pakistani ports.
The situation comes as Islamabad is attempting to break free from its boom-and-bust economic cycles by boosting exports, which rose 6 percent to $27 billion through April, according to the Pakistan Bureau of Statistics.
Until recently, many international shipping services transited Pakistani cargo through India’s largest ports — Mundra and Nhava Sheva — by loading what is termed Remaining On Board (ROB) freight.
However, India embargoed this practice last week, prompting several carriers to remove Pakistani ports from their routes and instead launch dedicated feeder services to handle trade valued at approximately $87 billion last year.
Most of Pakistan’s containerized cargo is handled through the South Asia Pakistan Terminal (SAPT) operated by CH Hutchison Holdings, Qasim International Container Terminal (QICT) run by DP World and the Karachi Gateway Terminal managed by Abu Dhabi Ports Group.
“Some vessels carrying Pakistan’s exports sailed from QICT were not allowed berthing in India,” said Hussain, whose association represents over 50 international shipping lines.
“They had to divert to Dubai and other nearby ports,” he added, without specifying when the incident occurred.
Shipping documents seen by Arab News show that at least four vessels were denied entry by Indian authorities earlier this week due to “Karachi onboard cargo.” These ships were rerouted to Colombo in Sri Lanka and Jebel Ali in the United Arab Emirates.
Swiss carrier MSC Mediterranean Shipping redirected all destination cargo via Colombo aboard its vessel MSC Positano V-JP526R, which had been scheduled to call at QICT on May 6.
This change, MSC said in a customer notice, was “due to the current geopolitical situation and restrictions on imports and exports via/from India.”
French shipping giant CMA CGM has removed Karachi from at least four of its service routes, citing the need to adjust operations to and from Pakistan.
“BIG BACKLOG” AT PORTS
Export congestion is building at Pakistani ports as hundreds of containers await shipment.
“There is big backlog,” said Khurram Mukhtar, Patron-in-Chief of the Pakistan Textile Exporters Association (PTEA).
Textiles remain Pakistan’s largest export sector, contributing $17 billion last year.
Mukhtar noted that most shipping lines were now planning to route exports through Colombo, with system updates expected by Monday.
MSC has launched a “Pakistan-Colombo Shuttle Service,” a weekly feeder vessel that will transport export containers to Sri Lanka for onward connections to global destinations.
Amid the ongoing crisis, international shipping lines have begun imposing surcharges on Pakistani exporters and importers.
CMA CGM has introduced an Emergency Operational Recovery Surcharge (EORS) of up to $800 per container for shipments to the US, Latin America and Australia, effective from May 15 through June 6.
The French firm said the surcharge was necessary to maintain service reliability and safety during this period. CMA CGM operates more than 250 routes globally with a fleet of 650 vessels.
“Pakistan’s exports are suffering,” said a senior official at one of Pakistan’s major container terminals, speaking on condition of anonymity.
“This will lead to the buildup of a huge container backlog at Pakistani ports,” the official said. “There will be issues like port demurrages. The shipping lines will be charging the consignees with detentions.”


PM Sharif announces IMF approval of $1 billion disbursement to Pakistan under $7 billion deal

PM Sharif announces IMF approval of $1 billion disbursement to Pakistan under $7 billion deal
Updated 09 May 2025
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PM Sharif announces IMF approval of $1 billion disbursement to Pakistan under $7 billion deal

PM Sharif announces IMF approval of $1 billion disbursement to Pakistan under $7 billion deal
  • The prime minister expresses satisfaction India’s ‘efforts to sabotage’ the loan program had failed
  • He says Pakistan’s economic situation is improving and it is moving toward financial progress

KARACHI: The International Monetary Fund (IMF) approved a $1 billion disbursement for Pakistan under a loan program secured by the government last year, Prime Minister Shehbaz Sharif said in an official statement late Friday.

The announcement followed an IMF Executive Board meeting to finalize staff-level agreements related to the $1 billion payout, as well as Pakistan’s new $1.3 billion arrangement under a climate resilience facility approved in March.

The meeting took place at a time when Pakistan is working to revive investment amid a gradually stabilizing macroeconomic environment, following a prolonged downturn that compelled it to seek external financing from allies and global lenders.

“Prime Minister Shehbaz Sharif expressed satisfaction over the IMF’s approval of the $1 billion tranche for Pakistan and the failure of India’s underhanded tactics against the country,” his office said in a statement issued after the board’s decision.

Media reports said recently India had attempted to pressure the IMF to block the disbursement, citing heightened military tensions between the two neighbors following a deadly April 22 attack in Indian-administered Kashmir that left 26 tourists dead.

New Delhi blamed Islamabad for the assault, an allegation Pakistani officials repeatedly denied.

Sharif said international financial institutions had “responsibly rejected” India’s narrative and reaffirmed their trust in Pakistan’s economic strategy.

“Indian efforts to sabotage the IMF program have failed,” he said, adding the disbursement would help stabilize the economy and steer it toward long-term recovery.

He praised Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb and other members of the government’s economic team for their role in securing the funds.

Pakistan has been working to broaden its tax base, improve energy sector efficiency, and unlock private sector growth as part of its reform commitments under the $7 billion IMF loan program.

“By the grace of God, the country’s economic situation is improving, and Pakistan is moving toward progress,” Sharif said. “The government remains committed to tax reforms, energy sector improvements and private sector development.”

He reiterated that Pakistan would stay the course on economic stabilization, effective performance and long-term planning.

The IMF funding approval comes at a critical time for Pakistan, as it seeks to reassure global investors and shore up foreign exchange reserves amid geopolitical instability and upcoming budget negotiations.


Pakistani stocks surge sharply on IMF optimism, hopes of easing India-Pakistan standoff

Pakistani stocks surge sharply on IMF optimism, hopes of easing India-Pakistan standoff
Updated 09 May 2025
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Pakistani stocks surge sharply on IMF optimism, hopes of easing India-Pakistan standoff

Pakistani stocks surge sharply on IMF optimism, hopes of easing India-Pakistan standoff
  • The benchmark KSE-100 index rose 3,647.82 points, or 3.52 percent, to close at 107,541.45
  • India-Pakistan tensions triggered about 12 percent market decline between April 23 and May 8

KARACHI: The Pakistan Stock Exchange (PSX) rebounded sharply on Friday, climbing over 3,500 points, as investor sentiment improved ahead of an International Monetary Fund (IMF) Executive Board meeting and what some analysts described as easing tensions between Pakistan and India.

The benchmark KSE-100 index recovered 3,647.82 points, or 3.52 percent, closing at 107,541.45, after a historic plunge of 6,482 points on Thursday, the largest single-day drop in the index’s history, triggered by fears of an escalating conflict between the two nuclear-armed neighbors.

"The recovery was on account of optimism on IMF Executive Board meeting scheduled to consider Extended Fund Facility (EFF) program, where market expects smooth approval," Topline Market Review said after the end of trading. "Overall decline in cross border hostilities also provided stimulus to investor sentiment."

The EFF, a $7 billion loan program secured by Pakistan in September last year, is aimed at stabilizing the country's economy through structural reforms and fiscal consolidation.

While Pakistan’s authorities say macroeconomic indicators have improved in recent months, they view the IMF support as critical for sustaining gains and transitioning toward growth.

Some analysts also linked the improved investor confidence to what they described as a gradually easing geopolitical situation between India and Pakistan.

"Stocks staged sharp recovery as investor eye de-escalation in Pakistan-India tensions after US appeal for end to violence," Ahsan Mehanti, the Chief Executive Officer of Arif Habib Commodities, told Arab News.

Raza Jafri, the head of Intermarket Securities, said any de-escalation could extend the positive stock market trend.

"Institutional value buying, especially in blue-chip high dividend yielding stocks, saw the KSE100 rebound today," he added.

Tensions between India and Pakistan spiked this week after New Delhi launched missile strikes on multiple locations in Pakistan, blaming Islamabad for a deadly April 22 attack in Indian-administered Kashmir that killed 26 tourists. Pakistan has denied involvement.

The crisis triggered a 12 percent decline in the Pakistani market from April 23 to May 8.

The geopolitical unrest posed a major challenge for Prime Minister Shehbaz Sharif’s efforts to stabilize the economy, which depends on a number of factors including increased foreign investment, exports and revenue generation.


Pakistan’s remittances hit record $31.2 billion in current fiscal year, led by Saudi inflows

Pakistan’s remittances hit record $31.2 billion in current fiscal year, led by Saudi inflows
Updated 09 May 2025
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Pakistan’s remittances hit record $31.2 billion in current fiscal year, led by Saudi inflows

Pakistan’s remittances hit record $31.2 billion in current fiscal year, led by Saudi inflows
  • PM Sharif praises overseas Pakistanis for supporting the country’s economic recovery
  • Central bank projects remittances to reach $38 billion by end of current fiscal year

KARACHI: Prime Minister Shehbaz Sharif on Friday lauded the contribution of overseas Pakistanis as workers’ remittances surged to a record $31.2 billion during the first ten months of the current fiscal year, with Saudi Arabia emerging as the top source of inflows.

According to data released by the State Bank of Pakistan (SBP), remittances rose by 30.9 percent during July-April FY25 compared to $23.9 billion received in the same period last year.

In April alone, Pakistan received $3.2 billion, showing a 13.1 percent year-on-year increase. The inflows were mainly sourced from Saudi Arabia ($725.4 million), United Arab Emirates ($657.6 million), United Kingdom ($535.3 million) and the United States ($302.4 million).

“Prime Minister Shehbaz Sharif expressed satisfaction over a 31 percent increase in remittances during the first 10 months of fiscal year 2025 compared to the previous year,” a statement issued by his office said.

“Remittances reaching a record level is a reflection of the confidence of overseas Pakistanis in government policies,” it quoted him as saying.

Remittances form a vital pillar of Pakistan’s external sector, helping stabilize the current account, fueling domestic consumption and easing the country’s reliance on external borrowing.

Earlier this year, in March, the SBP recorded an all-time monthly high of $4.1 billion in remittance inflows, driven by seasonal factors and improved formal channel usage.

Pakistan has focused on boosting exports and remittances in recent years as part of broader efforts to strengthen its external sector and address economic vulnerabilities.

The central bank has also revised its FY25 remittance projection upward from $36 billion to $38 billion, citing current trends.
 


‘A revolution in the way people travel’ — Saudi aviation industry soaring with sky-high ambition

‘A revolution in the way people travel’ — Saudi aviation industry soaring with sky-high ambition
Updated 09 May 2025
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‘A revolution in the way people travel’ — Saudi aviation industry soaring with sky-high ambition

‘A revolution in the way people travel’ — Saudi aviation industry soaring with sky-high ambition

RIYADH: Increased technology integration and greater connectivity over the next five years will see Saudi Arabia cement its position as a global aviation hub, experts have told Arab News.

In a comprehensive assessment of the Kingdom’s air sector, analysts and industry insiders have set out how investment in infrastructure, the roll out of new airlines, and a focus on sustainability will see Saudi Arabia reach its Vision 2030 goals.

The Kingdom is targeting handling 330 million passengers annually across 250 destinations by the end of the decade, as well as  transporting 4.5 million tonnes of cargo.

The industry laid the groundwork for this growth in 2024, achieving record-breaking results with the 94 million passengers transported representing  a 15 percent year-on-year increase, alongside a 10 percent rise in flight activity, and a 52 percent boost in air cargo, to reach nearly 1 million tonnes.

The International Air Transport Association’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi told Arab News that the Kingdom is preparing for the aviation sector to play an even bigger role in its future. 

“Over the next five years, we expect continued development in digitalization and connectivity, and for Saudi Arabia to be in an even stronger position as a global hub, driving economic and social growth for the Kingdom,” he said.

Al-Awadhi also emphasized that the nation’s regulatory reforms and commitment to sustainability will be key factors in attracting international airline partnerships and investment. 

He added: “GACA’s (the General Authority of Civil Aviation) revision of its charging scheme, to make Saudi airports more competitive in the region, is a positive step, now and for the future. As is its establishment of an independent economic regulatory framework.”

The top official noted that Saudi Arabia is the first country in the Middle East and North Africa to do this, and encouraged others to follow.

Riyadh Air — a portal to the Kingdom

A key development in the sector is the highly anticipated debut of Riyadh Air, Saudi Arabia’s new full-service airline, set to launch in 2025. 

The company has made significant strides in preparation for its release, including major aircraft acquisitions, strategic alliances, and technological investments.

Mark Bothorn, principal of innovation practice at Arthur D. Little Middle East, highlighted that the launch of Riyadh Air is a “watershed moment for Saudi Arabia’s aviation sector — an event of this scale and significance happens perhaps once a decade.”

He added: “As a full-service national flag carrier, Riyadh Air will not only enhance domestic connectivity but also position the Kingdom’s capital as a major global aviation hub.”

Bothorn further anticipated that the new national carrier would serve as an ambassador for Saudi Arabia, embodying the nation’s vision through cutting-edge design, unparalleled guest experience, and world-class connectivity. “The way the world perceives Riyadh will, in many ways, be shaped by the experiences this airline delivers,” he added.

Mark Bothorn, principal of innovation practice at Arthur D. Little Middle East. Supplied

The airline has ordered 60 Airbus A321neo jets, with plans for additional wide-body aircraft this year. It has secured agreements with Singapore Airlines, Air China, and Delta Air Lines to enhance interline connectivity, codeshare operations, and frequent flyer benefits.

Riyadh Air is collaborating with Artefact to develop an advanced data analytics platform that aims to offer hyper-personalized services and seamless digital-first experiences. Its initial routes will connect Saudi Arabia to major cities in Europe, North America, and Asia, enhancing its international connectivity.

Riyadh Air plans to connect with more than 100 cities by 2030. Shutterstock

The Kingdom’s existing airlines are also undergoing significant transformations to cater to the growing demand and enhance international reach. 

Saudia has placed a historic $19 billion order for 105 Airbus A320neo aircraft to expand its fleet, set for delivery starting in 2026.

Additionally, the airline is enhancing its maintenance and repair capabilities through a partnership with Air France-KLM. Flyadeal, Saudia’s budget airline, aims to double its fleet to 100 aircraft by 2030, offering affordable travel options across domestic and regional routes.

Flynas, the region’s top low-cost airline, secured a 280-aircraft deal, including Airbus A320neo and A330neo models, to support its aggressive expansion strategy. The airline also introduced new routes connecting Saudi Arabia to Africa and Europe.

Bothorn commented on the impact of heightened market contenders, saying: “Increased competition is always a catalyst for innovation and improvement, and in Saudi Arabia’s aviation sector, it will lead to two transformative outcomes.”

First, enhanced connectivity will strengthen Riyadh’s position as a global business hub by providing seamless access to international markets through more flights and improved routing.

Second, Riyadh Air, unburdened by legacy systems, has the potential to redefine air travel, setting new benchmarks in passenger experience and efficiency, according to Bothorn.

Airport infrastructure soars 

To handle the volume that new airlines will be attracting, Saudi Arabia is investing heavily in airport infrastructure. 

King Salman International Airport in Riyadh is set to become one of the world’s largest airports, with ongoing developments led by global firms including Foster & Partners and Jacobs Engineering. The airport will increase its capacity to accommodate 120 million passengers by 2030.

King Khalid International Airport’s expansion includes upgrades to Terminals 1 and 2, increasing capacity to 14 million passengers annually. Saudia’s deal with German aerospace company Lilium NV will introduce 50 electric vertical takeoff and landing jets, making it the first airline in the region to invest in sustainable air travel.

Bothorn emphasized the impact of airport infrastructure advancements. “For many travelers, the airport experience is often the most stressful part of a journey — navigating terminals, dealing with security bottlenecks, and enduring long waits.”

He added: “A seamless integration between the airport and airlines can dramatically transform this, replacing frustration with efficiency and even moments of delight.”

Bothorn envisioned airports that proactively anticipate passenger needs, with real-time updates enabling travelers to relax in lounges or dine rather than wait at gates.

An impression of how King Salman International Airport will look when construction is completed. File

Investment turbines spin

Saudi Arabia’s business aviation sector is thriving, driven by an influx of high-net-worth individuals and economic expansion. The sector, valued at $1.2 billion in 2023, is expected to grow at an annual rate of 8.88 percent from 2025 to 2029.

GACA is further boosting this sector by removing restrictions on foreign on-demand charter flights, allowing international operators to enter the domestic private aviation market starting in May.

Infrastructure and transportation developments outlined in the 2025 Saudi budget report reinforce these aviation ambitions. The gross domestic product of the transportation and logistics sector grew by 6.4 percent in the first half of 2024.

Total investment contracts signed in this sector amounted to over SR200 billion ($53.3 billion). Saudi Arabia has also strengthened its global presence by securing key positions in international aviation organizations, including hosting the UNCTAD Global Supply Chain Forum in 2026 and chairing the Executive Council of the Arab Civil Aviation Organization.

To enhance aviation services, the Kingdom has looked to implement modern and eco-friendly transportation initiatives during the Hajj season, including self-driving taxis, smart delivery vehicles, and increased aircraft seat capacity for pilgrims. Performance-based operations and maintenance contracts have been executed to enhance asset management efficiency.

Plans for 2025 include SR42 billion allocated for the infrastructure and transportation sector, which will witness the launch of several travel lounges across international airports, licensing new national air carriers, and expanding public bus networks to improve intercity and regional connectivity.

Al-Awadhi of IATA further elaborated on the nation’s role in shaping global aviation policies. “Many countries in the region look to Saudi Arabia for developing their aviation sectors, so the Kingdom plays an important role in shaping regional policies.”

Recent work revamping economic regulation related to consumer protection, safety and security has been followed by other countries in the region, according to the top official.

“We’re stronger as an industry when standards are aligned, not just regionally but globally,” he added.

Private jets and Saudi Arabia’s aviation roadmap

Saudi Arabia has made developing the private aviation market a key part of its roadmap for the sector, with the charter and corporate jet segments being supported by infrastructure upgrades such as six new general aviation airports.

The sector’s growth aligns with Vision 2030’s diversification efforts, particularly in tourism and entertainment, with destinations like AlUla and the Red Sea International Airport, capable of handling 1 million tourists annually, driving demand. 

During 2024’s Future Aviation Forum, GACA unveiled a roadmap aimed at increasing the general aviation sector’s contribution to GDP, targeting a tenfold growth to reach $2 billion by 2030. The plan encompassed the business aircraft sector, including private charter flights and corporate aviation.

Sustainability is another focus, with GACA’s plan targeting net-zero emissions by 2060 through initiatives such as sustainable aviation fuel and AI-driven efficiency optimizations. However, challenges, including limited sustainable aviation fuel supply, remain. 

The International Air Transport Association’s Regional Vice President for Africa and the Middle East Kamil Al-Awadhi. Supplied

Sustainable skies ahead

IATA’s Al-Awadhi highlighted the recent deal between Red Sea Global and daa International to introduce sustainable aviation fuel at Red Sea International Airport as “a positive step for Saudi Arabia and the region” when it comes to developing a more ecologically friendly sector.

The 35 percent SAF blend, supplied by Arabian Petroleum Supply Co., reduces aircraft emissions by up to 35 percent per flight, aligning with RSG’s broader sustainability efforts, including 400 megawatt-peak of solar installations and plans to plant 50 million mangroves by 2030.

The airport, operational from 2023 and with international flights beginning in 2024, serves the growing Red Sea destination, set to feature 50 resorts by 2030.

The next five years will bring transformative benefits for travelers flying to and from Saudi Arabia. Expanded airline networks will improve connectivity, reduce layovers, and increase travel convenience.

The rise of low-cost carriers like flyadeal and flynas means more budget-friendly flights for domestic and international routes. AI-driven services, biometric security checks, and world-class airport infrastructure will streamline travel, making it more efficient and comfortable.

“Expect nothing short of a revolution in the way people travel,” Bothorn said. He explained that long queues at security and immigration, endless gate waits, and the anxiety of either rushing through the airport or arriving far too early “will become relics of the past.” He projected air travel to become more intuitive and enjoyable.

Al-Awadhi added that Saudi Arabia is investing heavily in digital processing of passengers and integrating latest technologies at airports. 

“We can certainly expect better passenger experience and customer service,” he said, adding: “Airlines are also updating their fleets so travelers will be flying on the latest aircrafts, enjoying what new technologies have to offer. Improved connectivity will provide travelers with more choices, enhancing the overall customer experience.”

Investments in eVTOL aircraft and eco-friendly practices signal a shift toward greener aviation. Saudi Arabia is undergoing a historic transformation in its aviation sector, with massive investments, strategic expansions, and cutting-edge innovations that will redefine the travel experience.

By 2030, the Kingdom aims to be a premier global aviation hub, offering world-class connectivity, seamless air travel, and state-of-the-art airport facilities.