IATA backs Saudi-led aviation surge amid regional integration push 

IATA Aviation Day MENA was held for the first time in Saudi Arabia. Supplied
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Updated 07 May 2025
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IATA backs Saudi-led aviation surge amid regional integration push 

JEDDAH: The Middle East’s aviation sector is pushing toward greater integration and collaborative innovation, with Saudi Arabia’s rapid expansion positioning it as the region’s benchmark, according to a senior International Air Transport Association official. 

Kamil Al-Awadhi, IATA’s regional vice president for Africa and the Middle East, told Arab News that growth in the Gulf Cooperation Council is outpacing all other regions — and the Middle East could soon lead the global aviation industry. 

His remarks came during IATA Aviation Day MENA 2025 — held for the first time in Saudi Arabia in Jeddah from May 6 to 7 — where industry leaders gathered to explore how regional collaboration and harmonized regulation can unlock aviation’s full potential. 

Al-Awadhi credited the region’s resilience to unified political leadership and coordinated aviation strategies. 

“After the COVID-19 pandemic subsided in 2022, airlines in the Middle East resumed smooth operations, as if airports had not been closed at all. In contrast, carriers in Europe and the US struggled for several months to return to normal operations,” he said. 

Al-Awadhi added: “Saudi Arabia is not only expanding its aviation infrastructure, but it is also investing in its people. This is vital to meet the immediate skills requirements while developing a professional workforce able to deliver on Vision 2030.” 

The official acknowledged the region’s operational strength but pointed to the lack of sufficient stakeholder dialogue. “The main goal of this event is to bring the region’s aviation sectors together to discuss their challenges and collectively work toward improvement,” the IATA official said. 

Nick Careen, IATA’s senior vice president for operations, safety, and security, said the Middle East was poised to outpace global air traffic growth over the next two decades. “Looking ahead, global air travel is set to grow at 3.3 percent per year for the next 20 years. But the Middle East will grow faster at 4.8 percent,” he said during his keynote. 

The event took place just days after IATA released its latest global passenger traffic data, showing industry-wide revenue passenger kilometers rose 3.3 percent year-on-year in March, reaching 738.8 billion — continuing the trend of subdued single-digit growth seen since 2023. 




Nick Careen, IATA’s senior vice president for operations, safety, and security. Supplied

Careen emphasized Saudi Arabia’s pivotal role in the region’s aviation transformation. “The sector is not just moving forward — it’s moving forward at speed. And that should make everyone in this room take notice.” 

He noted that aviation and aviation-related tourism contributed $90.6 billion to the Kingdom’s gross domestic product — representing 8.5 percent — and supported 1.4 million jobs. “More than 62,000 people are directly employed by airlines, and another 79,000 are working in the broader aviation ecosystem. In 2023, Saudi Arabia handled over 713,000 tonnes of air cargo,” he said. 

According to Careen, this progress is being driven by Crown Prince Mohammed bin Salman’s Vision 2030 plan, which places aviation at the heart of economic diversification and international connectivity. “We have seen it in the development of new airports, the digital push, the workforce development, and the launch of national carriers like Riyadh Air,” he said. 

Abdulaziz bin Al-Duailej, president of the General Authority of Civil Aviation, described the Middle East as an economy worth $9.48 trillion powered by a young population, adding: “Aviation here is not only enabling growth; it is leading transformation through strategic investment and collaboration.” 

He continued: “By 2024, passenger traffic across the Middle East exceeded pre-pandemic levels by 9 percent — more than double the global growth rate. While Saudi Arabia’s civil aviation sector recorded a remarkable increase of over 24 percent compared to pre-pandemic levels.” 




Industry leaders gathered in Jeddah. Supplied

The Kingdom’s growth has been marked by major achievements. In 2024 alone, Saudi Arabia handled 128 million passengers, more than 900,000 flights, and 1.2 million tonnes of cargo. The government has ordered 500 new aircraft and attracted 21 new international airlines into its market. 

“The Kingdom’s aviation market is opening rapidly. In the past year alone, 21 new international airlines have entered the Saudi market, and in the first quarter of 2025, foreign carriers carried 63 percent of international passengers,” Al-Duailej said, reaffirming the Kingdom’s willingness to engage globally to shape the sector’s future. 

In its latest press release, IATA outlined three strategic priorities to help Saudi Arabia sustain its aviation gains: improving coordination with stakeholders, ensuring cost-effective infrastructure development, and building national talent. 

“Given Saudi Arabia’s important role in shaping regional aviation policies, continued collaboration and consultation with users and stakeholders, along with alignment to global standards and best practices, are vital,” the organization said. 

It also emphasized the need for cost-competitiveness. “As Saudi Arabia makes significant investments in airport infrastructure and digitalization, it is critical to work with the industry to ensure cost competitiveness,” IATA added. 

On workforce development, the group noted: “Ensuring a skilled workforce across all areas of aviation will enable the Kingdom to fulfill its potential as a regional and global aviation hub.” 

On the sidelines of the forum, IATA announced new training agreements with Saudi airlines, airports, and academic institutions. In the first phase, more than 1,000 graduates and aviation professionals will be trained in areas such as airport operations, safety, airline management, and ground handling. 

Riyadh Airports Co. and Qassim University joined IATA’s network of regional training partners, alongside long-time collaborator Prince Sultan Aviation Academy. Together, the three will deliver over 60 programs covering technical, commercial, and interpersonal skills. 

“The renewed agreement enables the academy to offer IATA training courses within the Kingdom and across the GCC region. All operational aviation requirements — including cabin crew, maintenance, ground services, and business training — are provided by PSAA,” said Khalid Bawazeer, the academy’s director of continuous studies, to Arab News. 

“This requires preparation to meet the demand for increased training programs, whether conducted internally by the academy or through external courses such as those offered by IATA,” he added. 

As part of the deal, sector awareness courses will also be offered to graduates of Riyadh Air and Saudia to nurture national talent for future leadership. Specialized Dangerous Goods training will be provided to operational staff from the Saudi Civil Aviation Academy. 




SAL Logistics Services Co. marks its new agreement at the event. Supplied

In addition, SAL Logistics Services Co. has been accredited as a competency-based training and assessment center, and Saudi Ground Services has renewed its CBTA accreditation. 

The IATA’s Careen acknowledged that despite the Kingdom’s progress, aviation development remains uneven across the Middle East due to persistent geopolitical instability. 

He pointed to challenges in Yemen, Syria, Iraq, and Lebanon, where conflict and sanctions have suppressed growth. “Where aviation continues to demonstrate remarkable resilience in the face of political instability, it does far better in countries that are stable, peaceful and open,” the official said. 

Careen called on governments and regulators to align efforts toward a more integrated and forward-looking aviation environment. “A Middle East characterized by open skies, harmonized regulations, and shared innovation,” he said, is critical to long-term success. 

“To every government, airline, and civil aviation authority in this room, your success is everyone’s success. A rising tide lifts all boats, and in this case, all planes,” he said. 

Ibrahim Al-Omar, director general of Saudia Group, the host of the event, said the forum was a valuable opportunity to showcase how Vision 2030 is reshaping regional aviation. 

“With safety, innovation, and sustainability driving our progress, IATA Aviation Day MENA is a valuable platform to showcase how the Kingdom’s Saudi Vision 2030 is shaping the future of aviation not only across the Kingdom but the region and beyond,” he said in a statement released a day prior to the event.


UAE, Kuwait and Egypt extend non-oil growth in December: PMI surveys

Updated 59 min 38 sec ago
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UAE, Kuwait and Egypt extend non-oil growth in December: PMI surveys

RIYADH: Non-oil business activity across the UAE, Kuwait and Egypt expanded further in December, supported by rising new orders and steady demand, economy trackers showed. 

In its latest report, S&P Global revealed that the UAE’s Purchasing Managers’ Index eased slightly to 54.2 in December from a nine-month high of 54.8 in November, remaining firmly in expansion territory. 

A PMI reading above 50 indicates an expansion in non-oil business activity, while a figure below 50 signals contraction. 

The UAE’s non-oil sector performance aligns with broader trends across the Middle East and North Africa, where economies continue to pursue diversification efforts aimed at reducing reliance on crude revenues. 

Saudi Arabia led the PMI readings in the region in December, with the Kingdom recording 57.4, supported by rising new orders, continued growth in business activity and expanding employment. 

Commenting on the UAE data, David Owen, senior economist at S&P Global Market Intelligence, said: “The UAE non-oil sector concluded 2025 with a solid upturn, marking a year of robust but somewhat tempered growth in business conditions.” 

He added: “Positively, firms finished the year with two of their best months of activity growth, as the survey data suggested that sales were rising much faster compared to their low point in August.” 

According to the report, the pace of business expansion in December was among the fastest recorded during the year, with more than a quarter of surveyed companies reporting month-on-month increases in output. 

Surveyed non-oil firms attributed the growth in activity to rising new business intake, driven by improving market conditions, supportive government policies, increased customer numbers, and stronger international demand. 

Some companies reported subdued sales, citing intensifying competition and ongoing economic uncertainty. 

“Firms took encouragement from signs of increased customer spending, rising tourism, greater technology adoption and supportive government policies,” added Owen. 

Companies also reported mounting cost pressures in December, with survey data pointing to the fastest rise in overall input prices in 15 months. 

Respondents highlighted above-average increases in salary expenses, along with higher transport and maintenance costs. 

Cost pressures also affected inventory management, with firms reporting a notable decline in stock levels. 

Employment growth remained relatively subdued at the end of the fourth quarter, with hiring only marginal and weaker than in November. 

“December was also characterized by an acceleration of cost pressures and leaner inventory strategies, indicating that many firms were feeling the pinch on their balance sheets. Additionally, reports of heightened competition and challenges in finalizing new work highlighted ongoing headwinds for the non-oil sector as it heads into 2026,” added Owen. 

Looking ahead, companies remained optimistic, although confidence eased and was among the lowest levels seen in the past three years. 

In the same report, S&P Global said Dubai’s non-oil economy ended the year on a positive note, with the emirate’s PMI at 54.3 in December, slightly down from 54.5 in November. 

Kuwait confidence at 2-year high 

In a separate publication, S&P Global said business confidence among non-oil firms in Kuwait hit a two-year high in December. 

The country’s PMI rose to 54 in December from 53.4 in November, driven by sharp and accelerated increases in output and new orders. 

Marketing activities and the launch of new products were cited as key factors supporting growth during the month. 

New orders increased for the 35th consecutive month in December, with the pace of expansion the fastest since May. 

Although employment increased, hiring was not sufficient to prevent a further build-up in backlogs of work. 

“The Kuwaiti non-oil private sector has been building growth momentum through the final quarter of 2025 and is in a strong position as 2026 gets underway. In fact, companies are buoyant about prospects for the coming year, with business optimism among the highest since the survey began in 2018,” said Andrew Harker, economics director at S&P Global Market Intelligence. 

He added: “New orders continued to flow in quickly in December, and despite efforts by companies to expand their staffing levels accordingly, backlogged work accumulated to the largest extent on record. This suggests that output will need to be ramped up further in the months ahead.” 

Egypt stays in expansion zone 

In another report, S&P Global said Egypt’s PMI eased to 50.2 in December from a 61-month high of 51.1 in November. 

The index remained above the 50 thresholds for the second consecutive month, signaling a sustained improvement in the health of the non-oil private sector. 

Firms benefited from increased new orders in December, supporting a modest expansion in output, although growth in both areas slowed compared to the previous month. 

“Improvements in order books have been a clear factor behind strong business performances over the past few months,” said Owen. 

He added: “The uplift in sales arrived amid a softening of inflationary pressures in the Egyptian economy, which has enabled businesses and consumers to spend with more confidence. Adding to signs of growth spreading, firms’ purchases of inputs increased for the first time in ten months.” 

Non-oil companies in Egypt reported a renewed decline in employment during December, with most firms citing difficulties in replacing staff who had left. 
The overall reduction in employment was the sharpest in 13 months, though it remained modest. 

Despite improving business conditions, firms expressed caution toward future activity. 

The outlook for the next 12 months was neutral in December, reflecting subdued confidence during the latter half of 2025. 

“The overall upturn in business conditions was softer in December compared to one month ago, suggesting this growth trend should be treated with caution. Firms also face continued uncertainties in the domestic and global sphere, which has made them hesitant to show optimism,” added Owen.