Saudi Arabia Opens Domestic Charter Market to Global Operators

05 May 2025

Bini Saroj

Saudi Arabia's General Authority of Civil Aviation (GACA) will lift cabotage restrictions on domestic charter flights, effective May 1, 2025. This means foreign operators can provide on-demand charter services within the country.

Riyadh: The move is likely to increase competition and potentially lower prices for charter flights. The decision could also stimulate tourism and business travel within Saudi Arabia by offering more flexible and accessible transportation options.

Effective 1 May 2025, Saudi Arabia’s General Authority of Civil Aviation (GACA) has abolished cabotage restrictions on charter flights—allowing foreign private and business jet operators to pick up and drop off passengers anywhere within the Kingdom.

This landmark reform is a core pillar of GACA’s General Aviation Roadmap, which aims to grow the sector into a $2 billion industry by 2030 and bolster Saudi Vision 2030 objectives.

Key Highlights

•           Cabotage Lift: International charter and business-jet operators can now conduct intra-Kingdom flights without returning empty to their base.

•           Permit Applications Underway: Since February’s announcement, multiple global and regional operators have filed for Saudi market entry.

•           Roadmap Investments: Alongside regulatory easing, GACA is rolling out major airport upgrades, dedicated FBOs and air-traffic enhancements.

•           Economic Impact: Expected to create jobs, stimulate tourism and improve business connectivity across Riyadh, Jeddah, Dammam and new regional airports.

Implications for Operators

•           New Revenue Streams: Monetise previously uneconomical “empty-leg” sectors and tap into Saudi domestic demand.

•           Operational Efficiency: Flexible routing reduces turnaround times and fuel costs.

•           Market Access: Serve burgeoning leisure, medical-evacuation and corporate-transport needs in the Kingdom’s fast-expanding economy.

Next Steps

·       Engage GACA Early: Prepare and submit applications for domestic charter permits using the Authority’s streamlined portal.

·       Ensure Regulatory Compliance: Align your safety, insurance, crew-licensing and Saudi aviation-security protocols with GACA standards.

·       Plan Infrastructure Support: Secure slots at Saudi FBOs, negotiate ground-handling agreements and integrate regional traffic-management systems.

Conclusion

By removing cabotage barriers, Saudi Arabia has unlocked a dynamic domestic charter market—presenting fresh growth avenues for international private-aviation players. Operators that move swiftly to secure permits, align with technical standards and establish local partnerships will be best positioned to capitalise on the Kingdom’s US$2 billion general-aviation vision.

ALKETBI TOUCH

Contact our practice today to craft your Saudi market-entry plan and navigate GACA’s new charter-flight regime with confidence. We offer end-to-end support for international operators, including: (a) Permit preparation and submission to GACA (b) Safety-management and insurance-coverage advisory (c) Negotiation of FBO and handling contracts (d) Crew-licensing, customs-clearance and immigration assistance & Ongoing regulatory updates and market-entry strategy. Contact us..