AN ambitious Saudi Arabian aviation strategy that aims to achieve 330 million passengers by 2030 as well as 4.5 million tonnes of cargo has been unveiled, reports Jeddah's Arab News.
'Current international tourist arrival levels for the country are still significantly below that of Turkey, for example, which recorded over 50 million in 2019,' said said Fitch Ratings director Raman Singla.
'However, given the relatively recent easing of visas and the post-pandemic recovery, tourism activity should see a rapid increase in the near to mid-term,' Mr Singla said.
Support for implementing this strategy will come greatly from the country's public finances (including the sovereign wealth fund), which will enable the development of infrastructure needed for this capital-intensive sector.
This strategy is broadly in line with that of some other Gulf countries in their bid to make their economies less dependent on oil. Trade and tourism are among the best enablers of such diversification, contributing directly to the country's GDP as well as local job creation.
It is estimated that this level of passenger volumes by 2030 could require up to about 1,000 aircraft operated by airlines in Saudi Arabia, assuming that around 50 per cent of this traffic is served by non-Saudi carriers. This compares with the estimate of about 250-300 aircraft currently operated by carriers in the country.
The kingdom has a sizable aviation sector already, particularly compared with its population size. The country's largest carrier, Saudi Arabian Airlines (Saudia) is the third largest airline in the Middle East, after Emirates and Qatar Airways.
Key Saudi airlines include Saudia, Riyadh Air, Flyadeal, Flynas and Nesma Airlines. While Saudia is the legacy Saudi state-owned flag carrier with a long history, Riyadh Air is a recently launched state-owned airline, which placed orders for 39 Dreamliners (including 18 B787-9 and 21 B787-10 aircraft) in July 2023.
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'Current international tourist arrival levels for the country are still significantly below that of Turkey, for example, which recorded over 50 million in 2019,' said said Fitch Ratings director Raman Singla.
'However, given the relatively recent easing of visas and the post-pandemic recovery, tourism activity should see a rapid increase in the near to mid-term,' Mr Singla said.
Support for implementing this strategy will come greatly from the country's public finances (including the sovereign wealth fund), which will enable the development of infrastructure needed for this capital-intensive sector.
This strategy is broadly in line with that of some other Gulf countries in their bid to make their economies less dependent on oil. Trade and tourism are among the best enablers of such diversification, contributing directly to the country's GDP as well as local job creation.
It is estimated that this level of passenger volumes by 2030 could require up to about 1,000 aircraft operated by airlines in Saudi Arabia, assuming that around 50 per cent of this traffic is served by non-Saudi carriers. This compares with the estimate of about 250-300 aircraft currently operated by carriers in the country.
The kingdom has a sizable aviation sector already, particularly compared with its population size. The country's largest carrier, Saudi Arabian Airlines (Saudia) is the third largest airline in the Middle East, after Emirates and Qatar Airways.
Key Saudi airlines include Saudia, Riyadh Air, Flyadeal, Flynas and Nesma Airlines. While Saudia is the legacy Saudi state-owned flag carrier with a long history, Riyadh Air is a recently launched state-owned airline, which placed orders for 39 Dreamliners (including 18 B787-9 and 21 B787-10 aircraft) in July 2023.
SeaNews Turkey