Saudi Arabia spearheads regional aviation growth

A recently released white paper titled “Lifting Economies: The Impact of the Aviation Sector on Middle Eastern Economies” — published by Aviation Business ME in collaboration with GE Aerospace — offers valuable insight into the transformative trajectory of the aviation industry across the Middle East.

According to the findings, aviation-related employment in the region is expected to grow by 134 percent between 2023 and 2043, the fastest rate worldwide, while passenger volumes are projected to double over the same period. With rising populations, accelerated infrastructure investments, expanding airline capacity, and the region’s strategic geographic role as a global crossroads, aviation is rapidly becoming one of the most powerful engines of economic growth and international connectivity in the Middle East.

The report highlights a striking projection: aviation’s contribution to regional GDP is set to increase by more than 150 percent by 2043, reaching an estimated $730 billion. This substantial surge underscores the sector’s emerging role as a pillar of regional economic development. By then, more than 530 million passengers — twice today’s traffic — are expected to transit through the region, with annual traffic growing at 3.9 percent.

Several factors underpin this positive momentum, foremost among them the long-term, strategic commitments made by regional governments to prioritize aviation. These commitments are visible in the scale of infrastructure modernization, the expansion and global positioning of national airlines, and the adoption of regulatory frameworks designed to foster growth and enable innovation. Combined with the Middle East’s advantageous location bridging East and West, these elements have cultivated an environment where aviation can deliver significant, sustained economic impact.

Within this broader regional ascent, Saudi Arabia stands out as a central force. Fueled by the ambitions of Vision 2030, major infrastructure investments, and a comprehensive expansion of air connectivity and tourism offerings, the Kingdom is positioning aviation as a key catalyst not only for economic diversification but also for deeper integration into global travel networks.

The white paper identifies Saudi Arabia as one of the region’s most dynamic aviation success stories. Backed by bold national strategies, transformative capital projects, and a clear vision to become a top-tier global aviation hub, the Kingdom is rapidly reshaping its aviation ecosystem.

Between 2016 and 2023, Saudi Arabia recorded the highest percentage increase in aviation-related job creation in the Middle East. Employment in the sector rose by 136 percent, reaching 1.4 million jobs — a clear reflection of the Kingdom’s commitment to embedding aviation at the core of its economic diversification plans. During the same period, the aviation sector’s direct GDP contribution grew by more than 150 percent to $91 billion.

Launched in 2021 by Crown Prince Mohammed bin Salman, the National Transport and Logistics Strategy aims to solidify Saudi Arabia’s role as a global logistics hub, capitalizing on its unique position at the crossroads of Europe, Asia, and Africa.

Talat Zaki Hafiz

Launched in 2021 by Crown Prince Mohammed bin Salman, the National Transport and Logistics Strategy aims to solidify Saudi Arabia’s role as a global logistics hub, capitalizing on its unique position at the crossroads of Europe, Asia, and Africa. The strategy supports the overarching goals of Vision 2030 and strengthens the Kingdom’s emergence as an international gateway for travel, trade, and investment.

Through its integrated aviation and logistics initiatives, Saudi Arabia seeks to become the world’s fifth-largest air transit hub. The Kingdom plans to expand international connectivity to more than 250 destinations, introduce a new national carrier, and elevate annual passenger traffic to 330 million by 2030. Air cargo capacity is expected to increase five-fold to over 4.5 million tonnes, supported by the modernization and development of 29 airports nationwide. 

These efforts aim not only to enhance Saudi Arabia’s global aviation standing but also to accelerate the growth of key sectors such as tourism, and Hajj and Umrah services.

In parallel, the Kingdom is committed to optimizing the full aviation and transportation value chain to ensure seamless multimodal integration, operational excellence, and long-term financial sustainability — factors essential for maintaining global competitiveness.

A core objective of the transport and logistics strategy is to raise the sector’s GDP contribution from 6 percent to 10 percent by 2030. This will be achieved by enabling sectoral expansion, attracting domestic and foreign investment, and strengthening the sector’s role within the broader national economy. Additionally, the strategy aims to increase annual non-oil revenue contributions to $12 billion, further cementing transport and logistics as vital enablers of Saudi Arabia’s economic transformation.

In conclusion, the white paper successfully highlights the expanding economic influence of the aviation sector across the Middle East, with Saudi Arabia emerging as a standout leader in this evolution. The Kingdom’s progress aligns directly with its national strategies — particularly the Saudi Aviation Strategy and the National Transport and Logistics Strategy — which position aviation and logistics as fundamental pillars of Vision 2030.

Supported by significant public and private investment and a clear, long-term policy direction, Saudi Arabia is constructing a globally competitive aviation ecosystem that fuels growth in tourism, Hajj and Umrah, international trade, and non-oil revenues. The white paper not only validates this strategic direction but also reaffirms that Saudi Arabia is not merely keeping pace with regional aviation trends — it is actively shaping and accelerating them.

Through integrated planning and ambitious execution, the Kingdom is rapidly emerging as a global gateway and a driver of sustained, long-term economic prosperity.

• Talat Zaki Hafiz is an economist and financial analyst.  X: @TalatHafiz