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. 


Closing Bell: Saudi main index climbs to 10,485 

Updated 21 December 2025
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Closing Bell: Saudi main index climbs to 10,485 

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Sunday, gaining 34.32 points, or 0.33 percent, to close at 10,484.59. 

The total trading turnover of the benchmark index stood at SR2.59 billion ($690 million), with 168 listed stocks advancing and 87 declining. 

The Kingdom’s parallel market Nomu also gained 100.37 points to close at 23,454.65. 

The MSCI Tadawul Index advanced by 0.13 points to 1,377.44. 

The best-performing stock on the main market was Nama Chemicals Co., whose share price increased by 9.98 percent to SR22.38. 

The share price of Al Masar Al Shamil Education Co. rose by 9.15 percent to SR23.85. 

Saudi Paper Manufacturing Co. also saw its stock price climb by 8.42 percent to SR57.95. 

Conversely, the share price of Canadian Medical Center Co. dropped by 6.37 percent to SR6.03. 

The stock price of Kingdom Holding Co. also declined by 3.16 percent to SR8.28. 

In the parallel market, Alfakhera for Mens Tailoring Co. was the top performer, with its share price advancing by 16.40 percent to SR8.80. 

On the announcements front, Theeb Rent a Car Co. said it had signed a long-term vehicle leasing services contract valued at SR110.4 million with Hungerstation Co. 

Under the deal, Theeb will lease 2,000 vehicles to HungerStation for a period of four years starting from 2026, according to a Tadawul statement. 

The statement added that the vehicles will be delivered in batches within the first six months from the contract start date, taking into consideration global logistical circumstances and procedures beyond the control of both the agents and the company. 

The contract is expected to have a positive impact on the company’s financials from the first quarter of 2026. 

The share price of Theeb Rent a Car Co. declined by 0.79 percent to SR37.80.