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Saudi Arabia's flynas Receives 2 Airbus A320neo

Nas Aircraft, the Saudi national economic carrier (Middle East)
Nas Aircraft, the Saudi national economic carrier (Middle East)
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Saudi Arabia's flynas Receives 2 Airbus A320neo

Nas Aircraft, the Saudi national economic carrier (Middle East)
Nas Aircraft, the Saudi national economic carrier (Middle East)

The Saudi budget airline flynas announced Monday that it had acquired two new Airbus A320neo aircraft, representing the third batch of 19 aircraft of the same model scheduled to be received this year.

Flynas signed an agreement with Airbus during the Paris Airshow to purchase 30 new A320neo aircraft as part of the national carrier's plans to increase its fleet.

Saudi Aviation announced that the size of the fleet has increased to 51 aircraft, up 96 percent in two years, compared to its size of 26 aircraft in the first quarter of 2021.

The two new A320neo aircraft arrived from Toulouse, France, and landed at King Khalid International Airport in Riyadh, bringing the number of aircraft delivered by flynas to seven; five are A320neo and two A330.

Flynas CEO Bander al-Mohanna announced that the airline received the second batch of A320neo aircraft in less than a month, within days of signing the agreement to purchase 30 new aircraft.

Mohanna affirmed that the purchase asserts the company's endeavor to support growth with modern and efficient operational capabilities, equipped with the latest technology as part of the strategy for growth and expansion under the slogan "We Connect the World to the Kingdom."

The CEO noted that the increase in the fleet size by adding more A320neo next-generation aircraft indicates the commitment to maintaining the position regionally and globally.

Skytrax, the international air transport rating organization, announced flynas as the 4th Best Low-Cost Airline in the World and kept its leading position as the Best LCC in the Middle East for 2023, for the sixth time in a row.

Last year, flynas' board of directors agreed to increase its orders to 250 new aircraft, making the Saudi carrier the largest budget carrier in the Middle East and North Africa.

The A320neo is a single-aisle aircraft popular with airlines for its fuel efficiency and low operating costs, reinforcing flynas' sustainability and environmental protection.

Flynas currently connects more than 70 domestic and international destinations, with more than 1,500 weekly flights.

Since its establishment in 2007, flynas has transported more than 60 million passengers and aims to reach 165 domestic and international destinations, in line with Vision 2030.

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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s digital advertising sector is experiencing rapid growth, but a significant portion of its revenues is leaking to foreign platforms. To maximize the impact on the national economy, experts are calling for strategies to curb this outflow and redirect it to local channels.

The importance of retaining digital ad revenues lies in the substantial size of this market. It is estimated that approximately $1 billion in ad spent is lost annually to foreign platforms, representing a considerable loss to Saudi Arabia’s economy.

Dr. Ebada Al-Abbad, CEO of Marketing and Communications at Tadafuq, a Saudi digital advertising network, told Asharq Al-Awsat that the problem stems from the fact that although advertisers, products, and audiences are often local, the largest share of financial gains goes to foreign platforms. He estimated that 70-80% of the $1.5 billion spent on digital advertising in Saudi Arabia in 2022 went to global platforms such as Google and Facebook. This results in the national economy losing nearly $1 billion annually from this sector alone.

Al-Abbad noted that government agencies in Saudi Arabia also contribute to the outflow. He explained that public sector spending on digital advertising, intended to raise awareness among citizens and residents, frequently ends up on foreign platforms. Government spending makes up about 20-25% of the total digital ad market in the Kingdom, meaning hundreds of millions of riyals leave the country annually, weakening the local digital economy.

Al-Abbad argues that Saudi Arabia needs strong local digital ad networks to keep this revenue within the national economy. These networks would help create jobs, drive innovation, and promote cultural diversity in digital content. Developing local platforms would also enhance Saudi Arabia’s digital sovereignty by ensuring that data remains within the country and is not controlled by foreign entities.

Moreover, local networks would reduce dependence on international platforms, ensuring that the economic benefits of digital advertising remain in the Kingdom, he said, stressing that this would align with Saudi Arabia’s broader Vision 2030 goals, which emphasize building a robust, diversified economy driven by local industries and digital transformation.

Globally, the digital advertising sector is growing rapidly. In 2022, worldwide spending on digital ads reached $602 billion, and it is projected to hit $876 billion by 2026. In the Middle East and North Africa (MENA) region, the digital ad market grew to $5.9 billion in 2022, with Saudi Arabia’s market accounting for over $1.5 billion.

In other countries, the digital ad sector plays a crucial role in boosting national economies. For example, in the United States, the digital advertising industry contributed $460 billion to the GDP in 2021, about 2.1% of the total. In the UK, the sector accounted for 1.8% of GDP in 2022. This shows how important digital advertising can be in driving economic growth.

One of the key challenges facing Saudi Arabia’s digital ad sector is the dominance of global platforms like Google and Facebook, which control 60% of the global digital ad market, Al-Abbad told Asharq Al-Awsat. This dominance results in a significant outflow of revenue and allows these platforms to control digital data and content. He warned that this could undermine Saudi Arabia’s national sovereignty over its digital economy.

To counter this, he emphasized that Saudi Arabia needs to build competitive local networks that can retain a larger share of the market. This will not only keep more revenue in the country but also strengthen the Kingdom’s control over its digital data and content.