Saudi Arabia’s ambitious vision to transform its economy is taking flight with the recent launch of a public tender for a national charter air carrier license. This move, spearheaded by the General Authority of Civil Aviation (GACA), signals a significant opportunity for business leaders eyeing expansion in the Kingdom. For executives familiar with the Saudi business landscape but seeking deeper insights into structuring their ventures, this development underscores the Kingdom’s commitment to fostering competition, attracting foreign investment, and diversifying its economy. At Peninsula, we specialize in guiding businesses through the complexities of business setup in Saudi Arabia, ensuring seamless entry and growth in this dynamic market.
The Saudi Aviation Tender, announced on April 13, 2025, invites private operators to bid for a national charter air carrier license, enabling non-scheduled flight services across the Kingdom. The bidding window, open until May 21, requires interested investors to submit offers both physically in sealed envelopes and electronically in encrypted form, with bids set to be opened on May 22 in Riyadh. This initiative is a cornerstone of the Kingdom’s National Aviation Strategy, which aims to facilitate 330 million passengers annually and connect to over 250 international destinations by 2030. By enhancing traveler services and boosting competitiveness, the tender aligns with Saudi Arabia’s broader economic goals.
For business leaders, this tender represents more than a licensing opportunity, it’s a chance to tap into a rapidly growing aviation sector. The Kingdom’s decision to lift cabotage restrictions in February 2025, allowing foreign companies to operate domestic routes starting May 1, further amplifies the potential for global players to engage in this market. This deregulation removes barriers that once limited foreign airlines from transporting passengers within Saudi borders, fostering a competitive environment.
The lifting of cabotage restrictions is a pivotal step in Saudi Arabia’s strategy to position itself as a global aviation hub. By allowing international companies to compete domestically, the Kingdom is driving innovation and operational flexibility in the general aviation sector. This reform is expected to attract significant foreign direct investment, mirroring trends seen in other deregulated industries such as telecommunications and energy. For executives considering business setup in Saudi Arabia, understanding these regulatory shifts is crucial, as they create a fertile ground for new ventures and partnerships.
The Kingdom’s business jet sector saw a 24 percent increase in flight volumes, with domestic flights rising by 26 percent to 9,206 and international flights growing by 15 percent to 14,406. These figures highlight the sector’s growing contribution to the national economy and its potential as a catalyst for business expansion. At Peninsula, our expertise in commercial registration ensures that businesses can navigate these opportunities with confidence, from securing licenses to establishing compliant entities tailored to the aviation sector.
The Aviation Tender is intricately tied to the Kingdom’s Vision 2030, a transformative blueprint aimed at diversifying the economy and elevating tourism’s role in GDP. By 2030, Saudi Arabia targets 150 million annual tourists, with 70 million coming from abroad, contributing 10 percent to the nation’s GDP, up from 3 percent in 2019. In 2024, the Kingdom welcomed 30 million international visitors, a record high that underscores its growing appeal as a global destination. Projects like NEOM, AlUla, and the Red Sea resorts are driving this surge, with aviation serving as the backbone for connectivity.
The Saudi Aviation Tender is a microcosm of the Kingdom’s broader push to diversify its economy and enhance private sector participation. GACA’s General Aviation Roadmap, unveiled at the Future Aviation Forum in May 2024, outlines ambitious plans to transform the sector into a $2 billion industry by 2030, creating 35,000 jobs. This includes developing six dedicated business aviation airports, nine specialized terminals, and expanded maintenance, repair, and overhaul capabilities. These infrastructure investments signal long-term opportunities for businesses in aviation and beyond.
For executives, the tender presents a dual opportunity: entering the aviation market directly or leveraging its growth to support adjacent industries. Whether you’re exploring a charter operation or a related venture, business setup in Saudi Arabia demands a deep understanding of local partnerships and regulatory frameworks. Peninsula’s team, led by founder Alistair Paine, combines regulatory expertise with practical business acumen to guide you through every step, from entity formation to securing the necessary licenses.
The Saudi Aviation Tender underscores Saudi Arabia’s emergence as a global business hub, but capitalizing on this opportunity requires strategic planning. The Kingdom’s regulatory landscape, while increasingly open, remains complex. GACA’s emphasis on compliance, such as the requirement for synchronized physical and electronic bid submissions, highlights the need for precision in market entry. Discrepancies or late submissions can lead to disqualification, a risk that Peninsula mitigates through meticulous preparation and local expertise.
Our proven track record in commercial registration and company formation ensures that your business is structured for success. Whether you’re a multinational corporation or an SME, we tailor solutions to your needs, drawing on our experience in the UAE and Saudi Arabia. By partnering with Peninsula, you gain access to a team that understands the nuances of the Saudi market, from aviation regulations to cultural considerations, enabling you to focus on growth.
As Saudi Arabia accelerates toward its Vision 2030 goals, the aviation sector stands as a beacon for business leaders seeking to expand in a market brimming with promise. By embracing deregulation, fostering competition, and investing in infrastructure, the Kingdom is creating an environment where innovation thrives.
For executives, the challenge lies in translating this potential into actionable strategies. Peninsula stands ready to guide you, offering unparalleled expertise in business setup in Saudi Arabia and commercial registration. Let us help you navigate the opportunities unveiled by the Saudi Aviation Tender, positioning your business to soar in one of the world’s most dynamic markets.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which market entry strategy is best suited to your business setup in Saudi Arabia.
Email: Alistair@peninsulacs.com
