MENA set for another budget carrier after Saudi approves Dammam-based airline

Saudi Arabia has given the green light for a new Dammam-based budget airline, which will be part of the Air Arabia low-cost carrier network as part of a joint UAE-Saudi initiative.

The still unnamed airline will be based at King Fahd International Airport in the eastern city of Dammam, near the kingdom's oil fields, serving 24 domestic and 57 international destinations.

The airline will include 45 aircraft and create 2,400 direct jobs, in a bid to boost connectivity and the economy of Saudi Arabia's Eastern Province, according to Arab News.

“This move aims to enhance air connectivity in the Eastern Province, increase seat capacity, and provide passengers with competitive options,"  the General Authority of Civil Aviation said in a statement.

The new airline is part of an initiative by UAE budget airline Air Arabia, KUN Investment Holding, and Nesma, the latter two based in Saudi Arabia.

Saudi Arabia is making moves to position itself as a major logistics, tourism and transport hub, as part of its Vision 2030 diversification initiative.

The new airline is also expected to boost the kingdom's tourism efforts, with King Fahd International, Al-Ahsa, and Al-Qaisumah airports in the Eastern Province all set to receive major cash injections to increase passenger numbers.

Crown Prince Mohammed bin Salman has relaxed investment and social rules in a bid to attract the most visitors to the kingdom, which has evolved from having a small, mostly pilgrim-based tourism industry to welcoming 100 million tourists in 2023.

This has been boosted by a massive advertisement drive and hosting major sporting and entertainment events, with the kingdom set to host the 2034 World Cup.