Aviation Sector in Saudi Arabia Emerges as Key Economic Driver

Saudi Arabia’s aviation sector rises as a key economic driver, powering growth through new airlines, airport expansion, and global connectivity.

The Saudi Arabia aviation sector contributes $90.6 billion to Saudi Arabia's economy, equivalent to 8.5% of GDP, while directly employing 141,000 people and supporting a total of 1.4 million jobs.

With ongoing investments in airport infrastructure, air capacity, and fleet expansion, Saudi Arabia is well-positioned to deliver sustained earnings growth over the next decade.

The country’s air connectivity indicators continue to improve with the launch of new direct flights to more overseas markets. In the first half of 2025 alone, Saudi airports welcomed 66.7 million passengers, handled 467,000 flights, and processed 575,000 tons of cargo.

In tandem with growing air travel demand, international companies are introducing innovations, scaling up operations, and betting big on the Kingdom’s aviation future.

What Fuels the Growth of the Saudi Arabia Aviation Industry

Large-scale airport developments go hand in hand with the launch of new airlines, most notably Riyadh Air, which is preparing for its commercial debut later this year. Once operational, Riyadh Air aims to serve over 100 destinations worldwide by 2030, create 200,000 direct and indirect jobs, and contribute more than $20 billion to GDP.

As the aviation sector expands, private investment will be critical to meeting the needs of the Kingdom’s domestic and international travelers. The government has placed strong emphasis on fostering collaboration with private operators to accelerate airport development and economic growth.

The Kingdom’s $100 billion aviation investment program, announced at the Future Aviation Forum in Riyadh, underlines its ambition to become a world-class aviation hub.

These initiatives also support Saudi Vision 2030’s goals of expanding annual passenger capacity to 330 million and cargo capacity to 4.5 million tons.

Foreign businesses can capitalize on this momentum through partnerships in aircraft leasing, maintenance, crew training, aviation support services, airport technologies, logistics, and passenger experience systems.

Furthermore, sustainability is also taking center stage in the General Authority of Civil Aviation (GACA)’s strategy. A prime example is its collaboration with Airbus, which aims to promote sustainable aviation practices under the Civil Aviation Environmental Sustainability Program (CAESP), reflecting Saudi Arabia’s recognition that sustainability must be a core pillar of aviation growth.

FlyNow Aviation: Pioneering the Future of Advanced Air Mobility

The aviation sector also sits at the intersection of technology and economic transformation, with Saudi Arabia emerging as a testbed for advanced air mobility solutions. Among the early movers is Austria-based FlyNow Aviation, an electric vertical take-off and landing (eVTOL) company that has established operations in the Kingdom.

FlyNow plans to deploy 1,000 to 4,000 air taxis by 2030, starting with commercial cargo before expanding into passenger services. With Riyadh’s population projected to reach 10 million, demand could reach 15,000 eCopters supporting up to 300,000 daily flights—illustrating the vast market potential.

The company has signed a memorandum of understanding with the National Industrial Development Center (NIDC), GACA, and Sky Alliance for Automated Air Mobility, paving the way for international firms to partner with local authorities and build sustainable business models in the emerging “low-altitude economy.”

Major upcoming events, including Riyadh Expo 2030 and the FIFA World Cup 2034, are further accelerating infrastructure development and creating new opportunities for advanced air mobility. These initiatives will help ensure safe, efficient transport of both passengers and cargo.

Saudi Arabia’s commitment to digital transformation in transport, coupled with its economic diversification agenda, provides strong market fundamentals for the growth of advanced air mobility (AAM) services.

Accordingly, companies like FlyNow are increasingly seeking to pursue the business setup process in Saudi Arabia and expand their operations in one of the world’s most attractive markets for global aviation investment