Saudi Arabiaā€™s aviation sector is set to be one of the fastest growing in the world in the coming years as the country seeks to position itself as both a regional aviation hub and as a major tourism destination, a report said.
Passenger numbers in the kingdom have already been expanding rapidly, hitting a record in 2023, and with the substantial investment planned in building up tourism resorts such as the Red Sea Project and the development of new airline Riyadh Air, growth will remain strong over the coming decades, said the Emirates NBD Research report.
Air freight is also in focus, with ambitious plans to boost its contribution to GDP. The expansion of the aviation sector in Saudi Arabia will thereby support the Vision 2030 economic diversification aims, helping to create jobs, generate new FX income streams, and grow the non-oil sectors of the economy.
Growth already strong
Prior to the Covid-19 pandemic in 2020, the number of passengers passing through Saudi Arabian airports had been steadily expanding, but the pace of growth had slowed from the peak levels seen in 2014 and 2015. Coming out of the pandemic, however, there has been a surge in growth over 2021-2023 as domestic and international air travel returned to normal and passenger numbers recovered to pre-pandemic levels.
The recovery is not the whole story with 2023 passenger numbers up not only 26% on 2022 levels, but also 8% on pre-pandemic 2019, resulting in a new record for the industry. This is testament to both the structural changes that have happened in the kingdom over the interim, and the heavy investment that is going into the aviation and tourism sectors, the report said.
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