Saudi Arabia Grants AOC to Air Arabia-Led Dammam Low-Cost Carrier

Saudi Arabia’s General Authority of Civil Aviation has issued an Air Operator Certificate to the Air Arabia-led consortium establishing a new low-cost airline at King Fahd International Airport in Dammam, clearing the carrier to begin operations.

The certification follows completion of GACA’s technical, safety, security and operational requirements and advances plans to establish another national airline serving Saudi Arabia’s Eastern Province.

Air Arabia Group is developing the carrier with Saudi partners Nesma Group and KUN Holding Company. The consortium was selected by GACA in July 2025 following a competitive process to establish and operate the Dammam-based airline, with the venture structured under majority Saudi ownership.

The new carrier is expected to build a network serving 24 domestic and 57 international destinations. GACA projects that it could carry approximately 10 million passengers annually by 2030.

The airline is also expected to create more than 2,400 direct jobs as its fleet and network expand, while increasing competition in Saudi Arabia’s domestic and international low-cost market.

The Dammam operation forms part of Saudi Arabia’s broader aviation expansion strategy, with the new airline intended to increase connectivity from the Eastern Province and develop King Fahd International Airport as a larger domestic and international gateway.