UK's Virgin Atlantic Strengthens UK-Saudi Connectivity Amid Aviation Boom

Since launching direct London-Riyadh flights in March 2025, the UK carrier has been capitalizing on Saudi Arabia's booming aviation sector

Saudi Arabia is committed to growing aviation as a key pillar of its economic diversification strategy. The Kingdom's aviation sector contributed $90.6 billion to GDP in 2024, representing 8.5% of the economy and supporting 1.4 million jobs.

By 2030, Saudi Arabia aims to triple annual passenger traffic to 330 million, extend connectivity to more than 250 destinations from 29 airports, and increase air cargo volumes five-fold to 4.5 million tons.

As Saudi Arabia's aviation sector unfolds, global aviation players are turning their gaze towards the Kingdom. One notable case is Virgin Atlantic, which has just opened an office in Riyadh as part of AstroLabs' office network in the Malqa district.

This marks a milestone in Virgin Atlantic's Saudi expansion journey as it aims to capitalize on Saudi Arabia's strengths as a premier aviation hub and attractive destination for travelers from Europe, including the UK.

Projected Travel Growth Between Europe and Saudi Arabia

Since launching direct flights between London and Riyadh in March 2025, Virgin Atlantic has progressively strengthened its presence in Saudi Arabia's rapidly growing air travel market. The UK-based airline's strategic expansion reflects the surging demand for connectivity between the two nations as economic ties deepen and tourism flourishes.

"Looking at how much air travel between the UK and Saudi Arabia has grown over the past five years, the opportunity is huge, driven by many segments of travel, whether in the corporate or consumer space. We intend to tap into all these great opportunities that exist here," said Justin Bell, Country Manager for Saudi Arabia and UAE at Virgin Atlantic.

Virgin Atlantic is betting on significant travel growth between Europe and Saudi Arabia, projected to jump by 24% by 2035. The airline's expansion strategy includes partnerships with key stakeholders in Saudi Arabia's aviation ecosystem, including AstroLabs, which supported Virgin Atlantic's initial market entry.

The private office spaces and business community offered by AstroLabs, the Gulf's leading business expansion platform, have served as vital hubs for Virgin Atlantic to connect with like-minded business partners.

"AstroLabs has also been an incredible support system, not just since Virgin began flying in Saudi Arabia, but even before," Bell explained. "We were looking to find a home, not just an office space where you can have a desk and work. We wanted a place where we could be among other like-minded companies, including those entering this market for the first time."

The airline's approach emphasizes taking a long-term view, investing strategically in hiring across departments and deepening ties with local stakeholders. Virgin Atlantic built comprehensive commercial and operational teams in preparation for its Saudi launch, ensuring readiness from day one of operations.

Strategic Partnerships Drive Expansion

Strengthening collaborations with key industry players forms the cornerstone of Virgin Atlantic's Saudi-specific expansion strategy. The airline has established a Strategic Cooperation Memorandum of Understanding (MoU) with Riyadh Air, the Kingdom's new national carrier, to expand connectivity through potential codeshares, interline agreements, and network synergy.

Riyadh Air launched long-haul flights from London Heathrow in late 2025, further strengthening trade and tourism links between the two countries and creating additional opportunities for aviation sector collaboration.

Bell emphasized that partnerships drive Virgin Atlantic's strength in the market: "Our strength comes from partnerships. Ever since we announced that we were going to start flying between London and Riyadh, we have achieved so much, having built commercial and operational teams that were ready to go when we started flying."

The Growing UK-Saudi Business Corridor

Saudi Arabia's rapidly transforming economy, coupled with ongoing policy and economic reforms, has turned the Kingdom into an attractive destination for international investments. As of late 2025, Saudi Arabia is home to approximately 660 regional headquarters (RHQs), with UK firms showing particularly strong interest.

Currently, around 50 UK companies have established their RHQs in Saudi Arabia, joining over 1,300 UK firms already operating in the Kingdom. Bilateral trade between Saudi Arabia and the UK now exceeds $22.5 billion, supported by collaborative projects across hydrogen, infrastructure, clean technology, healthcare, and education sectors.

"What excites us most is the transformation we're seeing in Saudi Arabia. A lot of businesses have moved here in recent years, and we are inspired by the journey the Kingdom is on," Bell noted. "Vision 2030 has painted an amazing picture of what life in Saudi Arabia will be like. For Virgin Atlantic, Saudi Arabia is a beacon of hope and prosperity for the future, which we are very excited to be part of."

Virgin Atlantic's launch in Saudi Arabia exemplifies how the Kingdom has become a magnet for UK business expansion. According to AstroLabs' 2025 Saudi Market Entry Report, the UK was among the top three regions incorporating companies pursuing business formation in Saudi Arabia in 2024, with business expansion urgency increasing by 33% year-over-year.

Virgin Atlantic's successful market entry, supported by strategic partnerships and a pro-business environment, demonstrates the viability and attractiveness of Saudi Arabia's aviation market for international operators.

As Saudi Arabia continues its transformation under Vision 2030, the aviation sector remains a vital enabler of economic diversification, tourism growth, and international connectivity—creating a compelling value proposition for UK companies across multiple sectors seeking to set up a business or expand their presence in one of the world's most dynamic markets.