عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Announces New Low-Cost Airline with Fleet of 45 Planes

The headquarters of the Saudi General Authority of Civil Aviation
The headquarters of the Saudi General Authority of Civil Aviation
TT
TT

Saudi Arabia Announces New Low-Cost Airline with Fleet of 45 Planes

The headquarters of the Saudi General Authority of Civil Aviation
The headquarters of the Saudi General Authority of Civil Aviation

Saudi Arabia announced on Sunday the planned establishment of a new national low-cost airline with a fleet of 45 planes to be ready by 2030, state media reported.

The United Arab Emirates's carrier Air Arabia was among an alliance of three companies that won a bid to operate the new airline.

The new carrier would operate domestic and international flights from and to King Fahd international airport in Dammam and is expected to expand travel options by serving 81 domestic and international destinations.

The announcement came during a ceremony in which Governor of Eastern Region Prince Saud bin Naif bin Abdulaziz inaugurated the new identity and master plan for the King Fahd International Airport.

The event also included the unveiling of the master plans for Al-Ahsa and Qaisumah international airports, the launch of the Dammam Airports Strategy, and the inauguration of a package of integrated development projects with a value exceeding 1.6 billion Saudi riyals.

The Saudi General Authority of Civil Aviation said on its X account that the establishment of a new national low-cost airline aims to enhance air connectivity for the Eastern Region, increase seat capacity, improve service quality for travelers, and create a competitive environment that offers more choices, all in line with the objectives of the aviation program under the National Transport and Logistics Strategy.

It said the winning bid came from a consortium comprising Air Arabia, Nesma Group, and Kun Investment Holding, which submitted the most competitive proposal.
The new national low-cost carrier is expected to expand travel options by serving 24 domestic and 57 international destinations.

It aims to connect nearly 10 million passengers annually through King Fahd International Airport (KFIA) by 2030, in support of the sector’s strategic goals.

The project will also create over 2,400 direct jobs, contribute to GDP growth targets under the aviation program, and support economic development and tourism in Dammam and Eastern Region.

The alliance is expected to complete licensing procedures and begin operations in 2026.

Future Plans

Prince Saud bin Naif bin Abdulaziz on Sunday also unveiled Dammam airports' new strategy and he inaugurated electronic gates to streamline passenger procedures.

He stated that the significant expansion of the Saudi aviation sector is a direct result of the government's strong commitment to supporting this industry, recognizing its crucial role in achieving broader development goals.

This includes investing in infrastructure improvements, increasing air connectivity, and establishing the Kingdom as a major global logistics hub, all in line with the objectives outlined in Vision 2030.

The strategic plan targets serving more than 19.3 million passengers annually at KFIA by 2030, more than double the number in 2022.

It also aims to boost air cargo capacity to over 600,000 tons annually, a 1,000% increase, positioning the airport as a key regional logistics hub in line with the Kingdom’s Vision 2030.

Future developments include a record-breaking expansion of the airport’s operational capacity, increasing aircraft movements to 77 per hour and boosting annual passenger capacity to 32 million.

Additional projects include comprehensive upgrades to general aviation facilities and infrastructure to meet the highest international standards.

By the end of 2024, King Fahd International Airport had recorded a 35% increase in passenger traffic compared to 2022.

Minister of Transport and Logistic Services and Chairman of GACA Saleh Al-Jasser said: “The Kingdom, under the support of its wise leadership, is witnessing unprecedented advancements in aviation and air transport projects, initiatives, and services.”

He noted that launching a new low-cost carrier in the Eastern Region is one of the initiatives of the aviation program derived from the National Transport and Logistics Strategy.

GACA President Abdulaziz Al-Duailej stressed that the new strategic program emanates from the National Strategy for Transport and Logistics Services, a key pillar to enhance air connectivity, and achieve the Kingdom's targets to be a global center in air transport and logistics services.

Most Viewed

 
 
Business

Gold Prices Dip as Markets Brace for 'Hawkish' Fed Tone

UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola
UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola
TT
TT

Gold Prices Dip as Markets Brace for 'Hawkish' Fed Tone

UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola
UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola

Gold edged down on Tuesday as investors, having mostly priced in a Federal Reserve rate cut, looked ahead for clues that the US central bank might opt for a gentler-than-expected easing cycle when its two-day policy meeting begins later in the day.

Spot gold was down 0.3% to $4,174.91 per ounce, as of 0609 GMT. US gold futures for December delivery slipped 0.4% to $4,202.70 per ounce.

Investors are largely repositioning ahead of the Federal Reserve's policy meeting, OANDA senior market analyst Kelvin Wong said.

"Earlier in the month, Jerome Powell signalled hawkish rate-cut guidance during his press conference. So investors in the US Treasury market are adjusting their positions."

The benchmark US 10-year Treasury yields held near a 2-1/2-month peak hit on Monday, Reuters reported.

Analysts widely expect a "hawkish cut" this week accompanied by guidance and forecasts that signal a high threshold for further easing into next year.

Last week, data showed the US Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation gauge, landed in line with expectations, while consumer sentiment improved in December.

Private payrolls for November recorded their sharpest drop in more than 2-1/2 years, but jobless claims fell to a three-year low for the week ended November 28.

Markets now assign an 89% probability of a quarter-point cut at the Fed's December 9–10 meeting, according to CME's FedWatch Tool.

Lower interest rates tend to favor non-yielding assets such as gold.

Meanwhile, silver fell 0.6% to $57.76 per ounce. The white metal hit a record high of $59.32 on Friday.

"Right now, silver is more of a higher-beta play among precious metals," Wong said, adding that low inventories, strong industrial demand, and expectations of Fed rate cuts are driving its momentum, pushing it into risk-on mode and outperforming gold.

Platinum lost 0.2% to $1,638.35, while palladium shed 0.4% to $1,459.78.

Business

Türkiye Cenbank Net Reserves Rose $5.5 billion Last Week, Bankers Say

Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas
Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas
TT
TT

Türkiye Cenbank Net Reserves Rose $5.5 billion Last Week, Bankers Say

Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas
Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas

The Turkish Central Bank's net reserves increased by around $5.5 billion last week, due to foreign currency buying and rising gold prices, according to bankers.

Calculations by four bankers showed that net reserves rose to almost $78 billion in the week ending December 5, with net reserves excluding swaps rising some $4.5 billion to $62.5 billion, Reuters reported.

The bankers said the central bank bought more than $3 billion last week, with more than $1 billion of the increase due to the gold price change.

The bank's total gross reserves increased by $3.3 billion to $186.5 billion last week, the bankers said.

Their calculations were based on the central bank's preliminary data, with official data to be released on Thursday.

Business

Non-Oil Activities Account for Half of Saudi Economic Growth Momentum

Photo of the Saudi capital (SPA) 
Photo of the Saudi capital (SPA) 
TT
TT

Non-Oil Activities Account for Half of Saudi Economic Growth Momentum

Photo of the Saudi capital (SPA) 
Photo of the Saudi capital (SPA) 

The Saudi economy posted real growth of 4.8% in the third quarter of 2025 compared with the same period of the previous year, reflecting the Kingdom’s sustained economic momentum. Non-oil activities were the primary engine of expansion, while seasonally adjusted real GDP rose 1.4% from the second quarter of 2025.

According to the final data released by the General Authority for Statistics (GASTAT), the annual growth figure came in slightly below the flash estimate published last October, which had projected a 5% increase. Even so, it remains the strongest quarterly performance recorded in 2025.

Non-oil activities delivered the largest contribution to overall annual growth, adding 2.4 percentage points, or 50% of the total 4.8% expansion. This outpaced the contribution from oil activities, which added 2.0 percentage points. The Authority revised its estimate for non-oil growth downward to 4.3% (from 4.5% in the flash estimate), while slightly raising its estimate for oil-sector growth to 8.3% (from 8.2%) for the previous quarter.

This improvement coincided with the gradual ramp-up in oil production following the expiration of voluntary cuts by the OPEC+ alliance at the end of August. Saudi Arabia increased its output by approximately 547,000 barrels per day starting in September, followed by an additional 137,000 barrels per day from November onward.

Both government activities and net taxes on products made modest positive contributions of 0.2 percentage points each.

On a quarterly, seasonally adjusted basis, oil and non-oil activities contributed 0.8 and 0.3 percentage points, respectively.

All economic sectors recorded positive annual growth. Oil refining emerged as the fastest-growing activity in the third quarter, rising 11.9% year-on-year and 3.9% quarter-on-quarter. It was followed by crude oil and natural gas activities, which grew 7.3% annually and 3.2% quarterly. Electricity, gas, and water services also posted gains of 6.4% year-on-year and 1.0% quarter-on-quarter.

From the expenditure perspective, performance varied between annual and quarterly comparisons. Final private consumption increased 2.6% year-on-year, but slipped 0.6% from the previous quarter. Conversely, final government consumption declined 3.1% annually, while increasing 1.4% quarter-on-quarter.

Gross fixed capital formation fell 0.7% year-on-year, but rebounded strongly on a quarterly basis with a 6.2% increase, indicating a pickup in investment spending during the third quarter.

Regarding foreign trade, the overall performance was buoyed by a significant surge in exports, which climbed 18.4% year-on-year and 7.5% quarter-on-quarter, reflecting strong external demand for Saudi products. Imports rose 4.3% annually, but edged down 1.2% on a quarterly basis.