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Saudi Arabia Launches 20 New Flight Routes to Europe

Saudi Arabia launched 20 new routes linking the Kingdom to new cities in Europe through Wizz Air, Europe's fastest-growing airline. (Asharq Al-Awsat)
Saudi Arabia launched 20 new routes linking the Kingdom to new cities in Europe through Wizz Air, Europe's fastest-growing airline. (Asharq Al-Awsat)
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Saudi Arabia Launches 20 New Flight Routes to Europe

Saudi Arabia launched 20 new routes linking the Kingdom to new cities in Europe through Wizz Air, Europe's fastest-growing airline. (Asharq Al-Awsat)
Saudi Arabia launched 20 new routes linking the Kingdom to new cities in Europe through Wizz Air, Europe's fastest-growing airline. (Asharq Al-Awsat)

Saudi Arabia launched 20 new routes linking the Kingdom to new cities in Europe through Wizz Air, Europe's fastest-growing airline.

The airline will introduce new destinations from Bucharest, Budapest, Catania, Larnaca, Milan, Naples, Rome, Tirana, Varna, Venice, and Vienna to Riyadh, Jeddah, and Dammam.

The General Authority of Civil Aviation (GACA) stated that the new routes would link Saudi Arabia to the world and create greater competition, enabling foreign airlines to expand in the Saudi market and boost tourism.

The new routes aim to boost the growing Saudi Arabian tourism sector and contribute to the Vision 2030 program to triple the country's passenger traffic by 2030 to reach 330 million passengers.

GACA aims to increase the number of destinations offered from the Kingdom's airports from 100 to 250 by 2030.

The Authority announced that the Kingdom would reduce the fees imposed by the Kingdom's main airports on airlines between 10 and 35 percent to create a regulatory framework to support a competitive aviation environment.

Reducing airport charges for Riyadh, Jeddah, and Dammam is part of the Saudi aviation strategy, a comprehensive sector reform program enabling industry investment totaling $100 billion.

Vice President of Economic Policies and Air Transport at GACA Ali Rajab said the new routes would boost Saudi Arabia's connectivity, demonstrate progress in delivering on the strategic objectives, and create a more competitive sector.

Rajab stressed: "We are committed to reducing costs in Saudi Arabia's aviation sector to ensure long-term competitiveness and growth."

He indicated that this marks another step in Saudi Arabia's vision to create a leading aviation sector with seamless experiences that exceed the expectations of businesses, investors, and passengers.

"Saudi Arabia is unleashing unprecedented aviation opportunities as the Kingdom connects to the world," he added.

The National Strategy is an ambitious plan based on privatization and will enable the development of Saudi airports to raise their operational efficiency and provide the highest standards of passenger services.

Over time, these changes will create investment opportunities that will significantly increase the Kingdom's GDP and enable Foreign Direct Investment (FDI).

The Strategy is driving significant freight growth and enhancing the logistics sector, and aims to empower Vision 2030 and become the leading aviation sector in the Middle East.

The Strategy will promote Saudi aviation by supporting sub-sectors of the civil aviation sector and ensure the Kingdom becomes a leader in the global industry drive to improve safety, enhance customer experience, and promote long-term environmental sustainability.

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After Trump’s Victory, Arab Demands for Competitive Advantages Due to Regional Tensions

Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)
Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)
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After Trump’s Victory, Arab Demands for Competitive Advantages Due to Regional Tensions

Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)
Donald Trump addresses his supporters at the West Palm Beach Convention Center in Florida on Wednesday. (EPA)

With the election of Donald Trump as US president, the global economy has gained direction for the coming years. Trump’s policies favor corporate tax cuts, increased investment, and expansionary monetary policies. He also promotes local production to boost job creation, which involves imposing significant tariffs on trade partners, particularly in Asia. This approach could trigger a trade war, affecting inflation in both the US and worldwide.

The US economy is already grappling with high prices, slower economic growth, and rising unemployment, alongside a national debt nearing 99% of GDP. This backdrop underscores the importance of economic issues in the recent election.

For the new US administration, domestic concerns will not be the sole priority. Ongoing geopolitical tensions, especially recent Middle Eastern conflicts, will also impact the US economy. To gain regional insights, Asharq Al-Awsat consulted economists from various Arab nations on their expectations and requests from the US president regarding the Middle East.

Priority of Regional Stability

Dr. Mohamed Youssef, an Egyptian economist, emphasized that regional stability is crucial, benefiting the economy and paving the way for resolving complex issues like the Nile Dam dispute affecting Egypt. He highlighted the American role in fostering calm in the region.

Iraqi economist Durgham Mohamed Ali noted that US relations vary across the Middle East; while Lebanon and Yemen remain outside current US alliances, Sudan and Somalia require international aid to rebuild infrastructure.

Competitive Advantage for Arab Countries

Ahmed Moaty, a global markets expert from Egypt, suggested that reduced US tariffs would improve Arab economies’ competitiveness. However, he pointed out the American high debt could motivate the administration to impose tariffs to protect local industries and reduce imports. Ali observed that US tariffs are interest-driven and selective, favoring allies like Japan, Taiwan, and South Korea while being stringent toward BRICS members, such as China, Brazil, and South Africa. He linked tariff policies to regional geopolitics, especially the conflicts involving Israel, Lebanon, Palestine, and Iran, which could influence US economic decisions.

Dr. Mohamed Youssef also argued that easing US-China competition could benefit the global economy, as high tariffs on Chinese goods reduce China’s growth, decreasing demand for key commodities like oil.

Ibrahim Al-Nwaibet, CEO of Saudi Arabia’s Value Capital, predicted that a Republican win could positively impact oil and interest rates, revitalizing the petrochemical and trade finance sectors.

On currency, Moaty noted the strong US dollar pressures emerging markets, especially in the Middle East. He suggested offering US Treasury bonds with higher yields to Arab countries as a counterbalance. Ali added that the dollar’s strength poses challenges for countries heavily reliant on US currency amid global liquidity shortages.

The BRICS Bloc

Ali also mentioned the high levels of US debt, explaining: “In general, the entire world is concerned about rising US debt, slowing growth rates... and is wary of the BRICS alliance, which some Arab countries hope to join. The question remains whether a cold economic war will ensue.”

Youssef also discussed the BRICS, which could play a role in attracting the new US president’s attention to countries joining the alliance. He added: “This may provide new competitive advantages for countries in the region, particularly as countries like Egypt, the UAE, and Iran recently joined BRICS, while Saudi Arabia is still evaluating the benefits of such move.”