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GACA Vice President: New Saudi Air Carrier to Be Launched Soon

Executive Vice President for Economic Policies and Logistics Services at GACA Awad Al-Sulami. (Photo: Turki Al-Agili)
Executive Vice President for Economic Policies and Logistics Services at GACA Awad Al-Sulami. (Photo: Turki Al-Agili)
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GACA Vice President: New Saudi Air Carrier to Be Launched Soon

Executive Vice President for Economic Policies and Logistics Services at GACA Awad Al-Sulami. (Photo: Turki Al-Agili)
Executive Vice President for Economic Policies and Logistics Services at GACA Awad Al-Sulami. (Photo: Turki Al-Agili)

Saudi Arabia is preparing to announce a new national air carrier in 2024 in line with the country’s goal to reach 250 global destinations by 2030.

In remarks to Asharq Al-Awsat on the sidelines of the Future Aviation Forum, Executive Vice President for Economic Policies and Logistics Services at the General Authority of Civil Aviation (GACA) Awad Al-Sulami confirmed that the modern national carrier will be announced this year, noting that studies were underway to determine the needs of the sector for additional airlines.

Held under the patronage of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz, GACA is hosting the third edition of the Future Aviation Forum (FAF 2024) at the King Abdulaziz International Conference Center in Riyadh from May 20 - 22.

The event focuses on “Elevating Global Connectivity” and strives to boost aviation collaboration via global partnerships, fostering innovation, sustainable air travel, and cultural exchange.

Asked about the current increase in domestic ticket prices, Al-Sulami pointed to the implementation of economic regulations for competition and transparency in the market. This will mainly reflect on supply and demand, he underlined, adding that the introduction of new carriers will lead to competitive prices.

Executive Vice President for Aviation Safety and Environmental Sustainability at GACA Capt. Suleiman Al-Muhaimedi told Asharq Al-Awsat that Saudi Arabia has achieved record indicators in safety rates over the past 15 years.

The Kingdom is one of the signatories of the Convention on International Civil Aviation (also known as Chicago Convention), which defines international rules and recommendations regarding sector standards, he added.

GACA Executive Vice President of Quality and Customer Experience Eng. Abdulaziz Al-Dahmash pointed to a major challenge in the aviation industry, which he said was growing at a rapid pace.

He stated that the target number of travelers during the year 2030 represents three times the current figures, explaining that the Authority has developed programs to measure the traveler’s experience and ensure its flexibility and smoothness.

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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.