Saudi Arabia’s Aviation Sector Powers Economic Growth with $90.6B Impact in 2023

The International Air Transport Association (IATA) has released its Value of Air Transport study specific to the Kingdom of Saudi Arabia, revealing the profound impact of aviation and aviation-related tourism on the national economy. Presented during IATA Aviation Day MENA, the study underlines aviation as a key economic engine aligned with the Kingdom’s Vision 2030 goals.

According to IATA’s 2023 data, aviation contributes an astounding USD 90.6 billion to Saudi Arabia’s economy, accounting for 8.5% of its Gross Domestic Product (GDP). The sector supports a total of 4 million jobs, both directly and through its extensive supply chains, tourism spending, and employee expenditures. Out of this total, 62,000 jobs are directly within airline operations. Furthermore, Saudi Arabia handled over 713,600 tonnes of air cargo, a vital indicator of robust commercial activity and logistics capacity.

The Strategic Role of Aviation in National Prosperity

“Aviation is a catalyst for economic and social development,” noted Kamil Alawadhi, IATA’s Regional Vice President for Africa and the Middle East. He emphasized that Saudi Arabia’s commitment to connectivity and aviation is an integral part of its national economic strategy. With aviation already supporting 1.4 million direct and indirect jobs, the Kingdom is positioning itself as a global aviation powerhouse.

Saudi Arabia’s ongoing initiatives under Vision 2030—a sweeping plan to diversify the economy beyond oil—are incorporating aviation as a strategic enabler of trade, tourism, and foreign investment. These efforts are underpinned by targeted investments in airport infrastructure, workforce development, and regulatory modernization.

Key Strategic Priorities for Future Growth

To ensure that aviation continues to generate strong socio-economic returns, IATA has laid out three key priorities for Saudi Arabia:

1. Collaboration and Global Standards

Saudi Arabia plays a central role in shaping aviation policy across the Middle East. IATA stresses the importance of ongoing engagement with international stakeholders, adherence to global safety and service standards, and transparent regulatory environments to foster sustainable sector growth.

2. Infrastructure Expansion and Modernization

With significant investments underway in airport terminals, digital platforms, and air traffic management systems, Saudi Arabia is enhancing capacity and traveler experience. However, IATA cautions that these developments must be pursued in partnership with industry players to ensure cost efficiency and commercial viability.

3. Workforce and Capacity-Building

One of the major challenges and opportunities lies in talent development. IATA recently signed new agreements with Saudi organizations to deliver skills training to over 1,000 aviation graduates and professionals. A sustained focus on nurturing local talent will be essential in transforming the Kingdom into a regional aviation hub.

Looking Ahead: Aviation as a Growth Multiplier

Saudi Arabia’s aviation sector is on an upward trajectory. With bold initiatives like the Riyadh Air launch, King Salman International Airport development, and NEOM’s futuristic air mobility plans, the Kingdom is not only investing in conventional aviation but also pioneering innovation.

The IATA study confirms that strategic prioritization of aviation—supported by regulatory reforms, infrastructure efficiency, and human capital development—can significantly enhance Saudi Arabia’s global competitiveness, economic diversification, and social cohesion. The road ahead will require coordinated efforts, but the rewards promise to be transformative for the nation and the wider region.