SAUDI ARABIA AVIATION: Saudia transforms and the market grows

Saudi Arabia's aviation market has entered a new phase of rapid growth, facilitated by liberalisation. Saudi Arabia recorded 8% passenger growth in 2017 and the rate of growth could reach the double digits over the next several years.

Five airlines now serve the domestic market, compared to only two airlines two years ago. Intensifying competition has led to lower fares, stimulating demand and leading to faster growth, although overcapacity is a potential concern.

The international market is expanding rapidly and has an even brighter outlook, driven primarily by rising inbound demand as Saudi Arabia focuses on tourism as part of a diversification strategy. Aviation is also a major priority for the government, leading to an ambitious expansion plan at the flag carrier Saudia and the opening of a massive new terminal at Jeddah Airport.