First use of sustainable aviation fuel in Saudi Arabia to be at Red Sea International Airport

The deal marks a significant step in reducing aviation-related carbon emissions in the Kingdom. Supplied
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Updated 26 February 2025
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First use of sustainable aviation fuel in Saudi Arabia to be at Red Sea International Airport

RIYADH: Sustainable aviation fuel will be used in Saudi Arabia for the first time after a deal was struck for airplanes using Red Sea International Airport.

An agreement between Red Sea Global, daa International, and Arabian Petroleum Supply Co. will see the airport supplied with a 35 percent SAF blend, cutting direct aircraft emissions by up to 35 percent. 

The deal marks a significant step in reducing aviation-related carbon emissions in the Kingdom, according to a press release. 

This aligns with the company’s goal to power all operations at the Red Sea with renewable energy. It has already installed over solar panels capable of producing 400 megawatts, which is expected to offset up to 600,000 tonnes of carbon dioxide equivalent annually. 

John Pagano, Group CEO of Red Sea Global, said that by introducing SAF to the Kingdom, the company is significantly reducing guests’ personal carbon footprints from the moment they arrive and even after they depart. 

“More than this, we’re supporting the wider aviation sector to start making choices that are better for the environment,” he added. 

SAF is a lower-carbon alternative to traditional jet fuel, designed to reduce greenhouse gas lifecycle emissions. It can be produced from renewable sources, waste-derived materials, or synthesized from clean hydrogen and captured carbon dioxide.  

In accordance with international standards set by the International Civil Aviation Organization and the International Air Transport Association, SAF must be blended with conventional Jet A1 fuel.  

Aviation fuel significantly impacts sustainability, with the industry contributing about 2.5 percent of global carbon emissions annually.  

SAFs can reduce emissions by up to 80 percent but currently account for less than 0.1 percent of jet fuel used by major US airlines.  

Challenges include high production costs and limited availability, hindering widespread adoption. 

“Introducing sustainable aviation fuel at Red Sea International Airport marks a significant milestone in our commitment to environmental stewardship and sustainability. This groundbreaking initiative not only reduces carbon emissions but also aligns with our broader mission to protect the Red Sea’s unique and fragile ecosystem,” said Michael White, chief commercial officer at RSI. 

RSG’s commitment to sustainability extends beyond aviation fuel. Its subsidiary air operator, Fly Red Sea, will exclusively refuel its seaplane fleet with SAF and lower-carbon aviation fuel.  

Additionally, RSG has committed to planting and restoring 50 million mangroves by 2030 to enhance carbon sequestration and biodiversity in collaboration with the National Center for Vegetation Cover.  

The Red Sea welcomed its first guests in 2023, with five hotels now open. RSI has been receiving regular domestic flights since September 2023, and international flights began in April with a twice-weekly route to Dubai International Airport.  

Upon full completion in 2030, the Red Sea will feature 50 resorts, offering up to 8,000 hotel rooms and over 1,000 residential properties, alongside marinas, golf courses, entertainment venues, and leisure facilities. 


Saudi stock market opens its doors to foreign investors

Updated 06 January 2026
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Saudi stock market opens its doors to foreign investors

RIYADH: Foreigners will be able to invest directly in Saudi Arabia’s stock market from Feb. 1, the Kingdom’s Capital Market Authority has announced.

The CMA’s board has approved a regulatory change which will mean the capital market, across all its segments, will be accessible to investors from around the world for direct participation.

According to a statement, the approved amendments aim to expand and diversify the base of those permitted to invest in the Main Market, thereby supporting investment inflows and enhancing market liquidity.

International investors' ownership in the capital market exceeded SR590 billion ($157.32 billion) by the end of the third quarter of 2025, while international investments in the main market reached approximately SR519 billion during the same period — an annual rise of 4 percent.

“The approved amendments eliminated the concept of the Qualified Foreign Investor in the Main Market, thereby allowing all categories of foreign investors to access the market without the need to meet qualification requirements,” said the CMA, adding: “It also eliminated the regulatory framework governing swap agreements, which were used as an option to enable non-resident foreign investors to obtain economic benefits only from listed securities, and the allowance of direct investment in shares listed on the Main Market.”

In July, the CMA approved measures to simplify the procedures for opening and operating investment accounts for certain categories of investors. These included natural foreign investors residing in one of the Gulf Cooperation Council countries, as well as those who had previously resided in the Kingdom or in any GCC country. 

This step represented an interim phase leading up to the decision announced today, with the aim of increasing confidence among participants in the Main Market and supporting the local economy.

Saudi Arabia, which ‌is more than halfway ‍through an economic plan ‍to reduce its dependence on oil, ‍has been trying to attract foreign investors, including by establishing exchange-traded funds with Asian partners in Japan and Hong Kong.