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)
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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.



Data Centers Open New Avenue for Localizing Saudi Cooling Industry

Nabil Shahin discusses standards developed by the US-based Air-Conditioning, Heating, and Refrigeration Institute (AHRI). (LinkedIn) 
Nabil Shahin discusses standards developed by the US-based Air-Conditioning, Heating, and Refrigeration Institute (AHRI). (LinkedIn) 
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Data Centers Open New Avenue for Localizing Saudi Cooling Industry

Nabil Shahin discusses standards developed by the US-based Air-Conditioning, Heating, and Refrigeration Institute (AHRI). (LinkedIn) 
Nabil Shahin discusses standards developed by the US-based Air-Conditioning, Heating, and Refrigeration Institute (AHRI). (LinkedIn) 

From buildings and megaprojects to data centers, demand for air-conditioning and cooling solutions is expanding across Saudi Arabia, driven by rapid construction and accelerating investment in digital infrastructure.

As artificial intelligence and cloud computing enter a period of rapid expansion, data centers are emerging as a new growth driver for the cooling industry, requiring advanced levels of efficiency and reliability and equipment capable of operating under harsh climatic conditions.

The boom extends beyond Saudi Arabia. Globally, the cooling industry is expanding as temperatures rise and demand for data centers grows. The International Energy Agency estimates that global electricity demand for building cooling has risen by about 50% since 2015 to around 2,900 terawatt-hours, while worldwide air-conditioner shipments reached about 200 million units in 2024.

Cooling buildings is placing increasing pressure on power grids, particularly during heat waves, while data centers and AI are adding another layer of demand for advanced cooling technologies.

Global data-center electricity consumption stood at around 415 TWh in 2024 and is projected to reach about 945 TWh by 2030, with cooling and environmental-control systems accounting for a significant share of energy use at these facilities.

The growth comes amid mounting pressure to improve air-conditioning efficiency and reduce its environmental impact. According to the UN Environment Program, global cooling demand could more than triple from current levels by 2050 under existing policies, making equipment efficiency and less energy-intensive technologies increasingly important.

These shifts offer Saudi Arabia an opportunity to expand its domestic air-conditioning and cooling manufacturing base as the Kingdom seeks to increase local content and meet more of its market needs through domestic production.

Nabil Shahin, managing director of the Middle East and North Africa office of the US-based Air-Conditioning, Heating, and Refrigeration Institute (AHRI), told Asharq Al-Awsat that Saudi Arabia accounts for more than half of the Gulf air-conditioning market. He attributed the market’s growth to expanding commercial and construction projects, alongside the boom in data centers.

Data Centers Reshape Cooling Market

The Kingdom is experiencing a “growth boom” in data centers, according to the AHRI executive, fueled by the rapid spread of AI and rising demand for cloud-computing services. He noted that several US and European companies are developing data-center projects in Saudi Arabia.

As their cooling requirements increase, AHRI is working with the Saudi Standards, Metrology and Quality Organization (SASO) to develop and modify standards for data-center equipment to reflect the Kingdom’s temperatures, climatic conditions and local requirements.

Saudi Standard for Evaporative Coolers

Shahin noted that SASO had asked AHRI to develop a new standard for evaporative cooling systems, locally known as “desert coolers,” which use water in the cooling process rather than the refrigerants used in conventional air-conditioning systems.

There is currently no unified global standard for such systems, he explained. AHRI is developing the standard for submission to SASO, with the aim of providing a reference for manufacturers in the Saudi market.

The new standard will include energy-efficiency measurement criteria to assess equipment performance and suitability for local conditions.

Improving air-conditioning efficiency is particularly important in Saudi Arabia because of the sector’s high electricity consumption. More efficient systems could reduce power demand and emissions associated with electricity generation.

Saudi Arabia Leads Gulf Market

The AHRI executive estimated Saudi Arabia’s share of the Gulf air-conditioning market at more than 50%, with demand continuing to rise alongside commercial and construction projects, particularly in Riyadh, coastal areas and Makkah.

Some estimates put the Kingdom’s share at about 60%, he noted, but he prefers the more conservative figure of over 50% because no verified official data precisely establish its market share.

The scale of demand has made Saudi Arabia attractive to international companies, several of which have expanded their presence over the past two years by establishing new factories or enlarging existing facilities.

Local manufacturing can give companies an additional advantage by reducing some import costs, which can range from 5% to 12%, according to Shahin. He pointed to three large domestic factories that are expanding their operations.

From Assembly to Component Manufacturing

Localization, however, still faces the challenge of dependence on imported components. Most key air-conditioning components — including electric motors, compressors, copper and refrigerants — continue to come from abroad.

Much of Saudi Arabia’s current manufacturing activity remains focused on assembly, although some components, including heat exchangers, are produced domestically.

The next step, the AHRI official argued, is to move gradually from assembly toward manufacturing a greater proportion of air-conditioning components in the Kingdom, including electronics, circuit boards and electric motors.

He called for additional government incentives and support, including land, industrial space, free zones and investment facilities, to help Saudi factories expand and increase the share of locally manufactured components.

 

 


Gold Slips on Rate-Hike Bets; Inflation Data in Focus

Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)
Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)
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Gold Slips on Rate-Hike Bets; Inflation Data in Focus

Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)
Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)

Gold slipped on Monday as strong US jobs data reinforced expectations for higher interest rates, while investors awaited key US inflation reports due later this week for further clarity on the Federal Reserve's policy path.

Spot gold was down 0.6% at $4,402.86 per ounce, as of 0420 GMT, after falling 1% on Friday.

US gold futures for December delivery were down 0.6% at $4,447.60.

Data ‌on Friday ‌showed US job growth accelerated sharply in August ‌while ⁠the unemployment rate ⁠held steady at 4.1%, suggesting an improvement in the labor market after recent struggles and keeping a rate increase this month on the table.

US producer price index (PPI) data is due on Thursday, followed by consumer price index (CPI) data on Friday.

"The jobs number delivered a clear upside surprise and put some pressure ⁠on the metal, but it wasn't a ‌complete slam dunk for a September ‌rate hike. The real missing piece of the puzzle arrives this ‌week with U.S. CPI," said Tim Waterer, chief market analyst ‌at KCM Trade.

"A strong inflation print would reinforce expectations of a Fed hike, lift yields further and weigh more heavily on gold."

Traders are pricing in a 58.4% chance of a rate hike ‌at the Fed's September 15-16 meeting, CME's FedWatch tool showed.

While gold is typically viewed as ⁠an inflation ⁠hedge, higher interest rates tend to weigh on the appeal of non-yielding bullion.

US President Donald Trump said on Friday that unless the Fed cuts interest rates, he would stop trading with countries with which the United States had a deficit.

On the Middle East front, Iran said it will step up efforts to tackle problems created by US sanctions that are crippling its economy, while a senior Iranian official warned of a "painful response" if it comes under further attack.

Among other metals, spot silver eased 0.6% to $65.80 per ounce, platinum lost 1.1% to $1,800.59 and palladium declined 0.5% to $1,394.00.


SEREDO 2026 Real Estate Expo Opens in Jeddah with Broad Participation

SEREDO 2026 real estate expo opens in Jeddah with broad participation. (SPA)
SEREDO 2026 real estate expo opens in Jeddah with broad participation. (SPA)
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SEREDO 2026 Real Estate Expo Opens in Jeddah with Broad Participation

SEREDO 2026 real estate expo opens in Jeddah with broad participation. (SPA)
SEREDO 2026 real estate expo opens in Jeddah with broad participation. (SPA)

Undersecretary of the Ministry of Municipalities and Housing for Stimulating Housing Supply and Real Estate Development Abdulrahman bin Abdullah Al-Tawil opened the fifth edition of the SEREDO Expo for Real Estate Development and Ownership 2026 at Jeddah Superdome.

Held under the ministry’s patronage, the event is bringing together government entities, real estate developers and financing companies, with broad participation from across the sector, the Saudi Press Agency reported on Sunday.

During the opening, Al-Tawil reviewed the key real estate and financing projects, products, and services offered by participating entities, as well as investment opportunities, solutions, and ownership options available to visitors and investors.

The expo brings together leading real estate entities and companies, providing a platform for industry stakeholders to connect, showcase their projects and products, and explore investment opportunities and ownership options available in the Saudi real estate market.

The opening ceremony also honored the event's patron, sponsors, and supporting partners in recognition of their contributions to SEREDO 2026 and their role in encouraging participation from across the real estate sector.

The exhibition runs through September 8, targeting real estate professionals, industry stakeholders, business leaders, and investors, as well as those interested in exploring projects and opportunities in real estate development, ownership, and investment.