Riyadh Air Eyes Gradual Expansion as New Aircraft Arrive

Riyadh Air’s new aircraft enters Saudi airspace (X)
Riyadh Air’s new aircraft enters Saudi airspace (X)
TT

Riyadh Air Eyes Gradual Expansion as New Aircraft Arrive

Riyadh Air’s new aircraft enters Saudi airspace (X)
Riyadh Air’s new aircraft enters Saudi airspace (X)

Riyadh Air has completed its structural setup phase and has moved formally into operations, advancing a gradual, carefully planned expansion strategy built around rapid fleet growth and the approaching commercial launch of Saudi Arabia’s new national carrier.

The arrival of its third Boeing 787 Dreamliner in Riyadh, along with the official start of ticket sales for its first domestic and international destinations, marks a new stage for the airline as it prepares to build a growing network focused on expanding operating capacity and targeting high-demand global markets.

The steps put into practice the goals of Vision 2030, which seeks to turn Riyadh into a global logistics hub and a key link for air transport and luxury hospitality between continents.

Osamah Alnuaiser, senior vice president of marketing and corporate communications at Riyadh Air, said the arrival of the third aircraft was a “historic moment” for the company, coming days after it received its first two planes.

He said the milestone crowned more than three years of work since the signing of the first deals with Boeing, under a plan to build a fleet of more than 182 aircraft.

Speaking to Asharq Al-Awsat, Alnuaiser said the new carrier had moved from establishment to actual operations. He said the company had started intensive operational tests, including daily nonstop flights between Riyadh and London, to assess service and product quality and test its operating model before the full commercial launch.

Five destinations

Alnuaiser said the company had officially started selling tickets to five destinations - Jeddah, Cairo, Dubai, Madrid and Manchester - calling the move the beginning of a route network that will expand gradually in the coming period.

He said Riyadh Air was preparing to receive more aircraft in sequence over the coming months, supporting plans to expand destinations and increase operating capacity. The company is currently operating four daily flights between Riyadh and Jeddah, he said, as part of a strategy to strengthen air links between the Saudi capital and major economic and tourism centers worldwide.

Alnuaiser said the company was constantly studying new domestic and international destinations. The goal, he said, was not merely to increase flights but to diversify destinations and connect Riyadh with major capitals and cities, in line with the aim of turning the capital into a global aviation hub.

Innovation

Alnuaiser said innovation and leadership were central pillars of Riyadh Air’s strategy, both in passenger services and in the digital and operational experience the airline is seeking to deliver.

Asked about the challenges facing the global aviation sector, Alnuaiser said geopolitical events and supply chain disruptions were common challenges for airlines. Riyadh Air, he said, was focused on seizing opportunities and selecting markets with strong demand and promising growth prospects.

He said the company expected to have more than 11 aircraft before the end of this year, with monthly deliveries of Boeing 787 aircraft continuing, along with the start of Airbus A321 deliveries at year’s end. That, he said, would strengthen fleet diversity and operational flexibility.

The expansion comes as Riyadh Air accelerates preparations to launch commercial operations, as part of Saudi Arabia’s plans to strengthen the aviation sector and increase international air connectivity, in line with Vision 2030 targets to make the Kingdom a global transport and logistics hub.

Aircraft delivery ceremony

Saudi Arabia’s new carrier celebrated the delivery of the new aircraft at a special ceremony in Riyadh attended by several ministers and officials.

Yasir Al-Rumayyan, governor of the Public Investment Fund and chairman of Riyadh Air, said at the ceremony that the moment embodied Vision 2030’s goals of strengthening the Kingdom’s connection to the world and supporting economic diversification.

He said the new national carrier was moving to cement Saudi Arabia’s position as a global transport and logistics hub, while Riyadh Air continued to build a new model for air travel linking Riyadh with the world.

Al-Rumayyan and Douglas, along with other officials, are seen inside the cabin of the new plane (X)

Saudi Arabia as a global hub

As Riyadh Air approaches commercial operations, Saudi Arabia’s aviation sector is expanding rapidly, led by several national carriers. Saudia operates more than 530 flights a day to over 100 destinations worldwide, while flynas runs about 2,000 flights a week, or about 285 a day.

Riyadh Air has started trial operations with daily flights to London before expanding to other destinations, while flyadeal reaches 38 domestic and international destinations through a network of 159 air routes.

The origins of Riyadh Air

The Riyadh Air project grew out of a vision to establish a new national carrier that would support the goals of Vision 2030.

On March 12, 2023, Saudi Crown Prince Mohammed bin Salman announced the launch of Riyadh Air as a company wholly owned by the Public Investment Fund. The airline is intended to connect the Saudi capital with more than 100 destinations worldwide by 2030.

Raid Ismail, PIF’s head of direct investments for the Middle East and North Africa, said Riyadh Air had started where others had left off. He said the region had seen expansion in low-cost carriers over the past two decades, but had not seen the creation of a major integrated airline built on a modern model from the start.

According to available information, the company has focused since its establishment on technology, innovation and the customer experience, positioning itself as a key enabler of growth in Saudi Arabia’s tourism sector, stronger international air connectivity and higher visitor numbers.

Ismail said the new carrier aims to make Riyadh an attractive destination and a major transit point for travelers, helping connect the Saudi capital to global destinations and supporting access to major projects such as Qiddiya, Diriyah and Riyadh Season, as well as other tourism and development destinations across the Kingdom.

He said establishing a new company gave Riyadh Air greater flexibility to build a modern operating model based on digital technologies, sustainability and an improved passenger experience, which became one of the main foundations of the airline’s strategy from the project’s launch.

Riyadh Air has started trial operations with daily flights to London before expanding to other destinations (X)

Reviving the golden age of aviation

Riyadh Air’s strategy is to reshape the air travel experience by combining luxury services with modern digital technologies.

Chief Executive Officer of Riyadh Air Tony Douglas has said the new national carrier does not aim only to transport passengers, but to redefine the entire journey through digital innovation and seamless connectivity.

Douglas said the company pays close attention to the smallest details, drawing inspiration from the golden age of aviation, when air travel was part of a complete hospitality experience.

He said Riyadh Air aims to restore that concept by offering a refined, distinctive experience on the ground and in the air, thereby strengthening its position as a global player in luxury air travel.

According to officials, artificial intelligence will be a central part of the operating model, through digital services capable of personalizing the passenger experience, suggesting activities, events and suitable options during the journey, and providing a smooth digital experience that allows passengers to complete services easily and quickly.

Riyadh Air says it is targeting an existing market with strong demand that still needs more services and options. Douglas said Saudi Arabia’s young population and wide use of digital technologies provide a favorable environment for the company’s growth.

He said the new carrier would play an important role in supporting the Kingdom’s tourism goals by making it easier for visitors to reach Riyadh and other Saudi destinations, and by strengthening Saudi Arabia’s position on the global travel map.



Port Security and Trade Continuity: A New Formula for Saudi Competitiveness

A panel discussion featuring Professor Waheed Sami Abu Shanab (Conference)
A panel discussion featuring Professor Waheed Sami Abu Shanab (Conference)
TT

Port Security and Trade Continuity: A New Formula for Saudi Competitiveness

A panel discussion featuring Professor Waheed Sami Abu Shanab (Conference)
A panel discussion featuring Professor Waheed Sami Abu Shanab (Conference)

Port competitiveness is no longer just about handling more ships and containers. Keeping trade moving and infrastructure secure against physical and cyber threats has become just as critical, as ports grow more reliant on digital systems and supply chains become increasingly complex.

The economic fallout from port disruptions and their impact on global trade took center stage at a session titled "Securing Infrastructure" during the Saudi Maritime and Logistics Congress 2026, which opened Wednesday in Jeddah with maritime and infrastructure security experts in attendance.

Discussions focused on threats facing ports and shipping companies, particularly cyberattacks capable of crippling operations and disrupting trade, and the need to strengthen port readiness to keep services running and limit economic losses.

Professor Waheed Sami Abu Shanab, a professor of marine engineering at King Abdulaziz University's Faculty of Maritime Studies, said Saudi ports now face a challenge that goes beyond expanding capacity: withstanding disruptions while keeping trade flowing at the lowest possible cost.

Speaking to Asharq Al-Awsat on the sidelines of the session, Abu Shanab said Saudi Arabia's ports on the Red Sea and Arabian Gulf gave the kingdom a strategic advantage as international trade routes shift. But making the most of that position requires greater investment in operational resilience, logistics connectivity and cybersecurity.

Investments top $3.7 billion

The challenges come as Saudi Arabia ramps up investment in port infrastructure. Its ports now have 34 logistics centers, including 17 at Jeddah Islamic Port, backed by investments exceeding 14 billion riyals ($3.7 billion), alongside projects to upgrade container terminals and boost handling capacity.

Abu Shanab said the investments include more than 2 billion riyals to develop a container terminal at Jubail Port and an initial 1.6 billion riyals for a fourth container terminal at Jeddah Islamic Port. Other projects involve upgrading cargo-handling equipment and expanding the use of modern operating systems.

He said future investment must focus on operational efficiency, reserve capacity and stronger links between ports, roads, railways and logistics hubs to absorb sudden surges in shipping volumes and redirect cargo when routes are disrupted.

Abu Shanab floated a preliminary proposal for an additional 10 billion to 20 billion riyals in investment over five years to strengthen strategic ports' readiness.

He stressed that the figure was a proposed planning scenario, not an official assessment of the sector's needs or an approved budget.

Cyberattacks threaten trade beyond ports

Abu Shanab warned that growing reliance on digital systems exposes ports to cyber threats whose economic impact could ripple through factories, markets and supply chains.

He pointed to the 2017 cyberattack on global shipping group Maersk, which the company estimated cost it between $200 million and $300 million after widespread disruption to its operations and systems.

A failure of digital systems managing containers, vessel schedules and cranes could leave cargo stranded, drive up delay and insurance costs, and undermine shipping companies' commitments and customer confidence, he said.

To illustrate the potential costs, Abu Shanab offered a hypothetical scenario: a delay affecting 5,000 twenty-foot equivalent units (TEUs), each incurring an additional 1,000 riyals in costs, would generate a direct bill of 5 million riyals before indirect losses.

He stressed that the calculation did not reflect actual losses at Saudi ports but illustrated the potential cost of disruptions. Investing in prevention and business continuity, he argued, could be cheaper than shutting down a strategic port.

Competitiveness goes beyond handling fees

Abu Shanab said regional ports should be judged not simply by their handling charges but by the total cost of getting goods from ships to markets, including customs clearance, storage, inland transport and schedule reliability.

Saudi ports overseen by the Saudi Ports Authority handled about 8.3 million TEUs in 2025, up 10.58% from a year earlier, highlighting growing activity and the need to expand capabilities without compromising service efficiency.

Artificial intelligence could help schedule vessel arrivals and allocate berths, while upgraded handling equipment could cut waiting times and fuel, storage and transportation costs, making services more reliable for shipping lines, he said.

"The most competitive port is not necessarily the one with the lowest fees, but the one offering the lowest total logistics cost, the greatest reliability and the fastest access to markets," Abu Shanab said.

Simulating crises before they strike

Abu Shanab called for a national simulation model using digital twins and artificial intelligence to test how ports and supply chains would respond to facility shutdowns or shifting maritime routes, and measure the time and cost of restoring operations.

He also urged stronger protection for critical infrastructure, including submarine cables, energy and telecommunications facilities, alongside improved vessel monitoring systems, disaster recovery centers and backup operating plans to keep essential services running.

Saudi Arabia's ports on two coastlines, coupled with expanding logistics services and transport networks, offer a foundation for more reliable supply chains, he said. But realizing that potential depends on matching existing investments with operational and technological readiness.

Protecting maritime infrastructure, Abu Shanab concluded, is no longer a standalone security or technical concern. It is central to port competitiveness and Saudi Arabia's ability to keep trade flowing, attract shipping lines and secure long-term investment.


Türkiye Cuts Key Interest Rate to 36%, First Cut in Months

Central Bank of Türkiye (Official Website)
Central Bank of Türkiye (Official Website)
TT

Türkiye Cuts Key Interest Rate to 36%, First Cut in Months

Central Bank of Türkiye (Official Website)
Central Bank of Türkiye (Official Website)

Türkiye's central bank cut its key interest rate on Thursday to 36 percent in the first cut in nine months, pointing to a recent slowdown in inflation.

At a policy meeting, the bank "decided to reduce the policy interest rate ... from 37 percent to 36 percent," it said in a statement.

It was the first cut since January when the bank cut the key rate from 38 to 37 percent, a rate which it held until Thursday's meeting.

"Despite monthly fluctuations, recent inflation figures and leading indicators confirm the downward trend," a bank statement said.

"Data on economic activity and the limited impact of supply shocks on domestic prices suggest that the weak trend in domestic demand continues," it added.

However, ongoing geopolitical tensions were keeping energy prices high, which could push inflation higher, it warned, saying the effects of such geopolitical developments "are being closely monitored".

Türkiye's annual inflation rate eased to 29.7 percent in September from 31.5 percent in August - the first time it had fallen below 30 percent in nearly five years, official figures showed.

At the time, Finance Minister Mehmet Simsek said it was at its lowest level since November 2021. "Disinflation is spreading across the board, excluding transportation," he wrote on X.

The official figures are disputed by the ENAG group of independent economists that publishes its own data, which said its figures showed year-on-year inflation stood at 46.6 percent in September.

 

 

 

 


Saudi Stock Market Drops 2.3% to Lowest Close Since 2021

A person stands in front of a screen showing falling stock prices (Reuters)
A person stands in front of a screen showing falling stock prices (Reuters)
TT

Saudi Stock Market Drops 2.3% to Lowest Close Since 2021

A person stands in front of a screen showing falling stock prices (Reuters)
A person stands in front of a screen showing falling stock prices (Reuters)

Saudi Arabia's benchmark stock index ended Thursday's session down 2.3 percent, shedding 231 points to close at 9,696, its lowest closing level since 2021, with total trading turnover reaching approximately SAR 4.9 billion.

The Tadawul All Share Index (TASI) fluctuated between an intraday low of 9,640 points and a high of 9,888 points.

Thursday's decline brought the index's weekly losses to more than 400 points, or 4.1 percent, marking its eighth consecutive week of declines.

Most stocks fell during the session, led by Saudi National Bank, which dropped more than 5 percent to SAR 34.62, with approximately 9 million shares traded.

Saudi Aramco and Al Rajhi Bank each declined 1 percent, closing at SAR 25.40 and SAR 59.80, respectively, while Maaden fell 5 percent to SAR 55.90.

Shares of Retal, Al Yamamah Steel, East Pipes, Jahez, Gulf Training and Saudi Steel Pipe ended the session with losses ranging from 5 to 9 percent.

Meanwhile, Electrical Industries, Abo Moati, Umm Al-Qura Cement, Saleh Al-Rashed, Wafrah, Saudi Vitrified Clay Pipe and Watani Iron Steel each fell 10 percent.

On the upside, Al-Etihad rose 10 percent to SAR 6.16, followed by JAZADCO with gains exceeding 9 percent. Shares of Al Arabia, UCIC and Saudi Kayan advanced between 1 and 3 percent.