Aviation contribute USD 90.6bn, 8.5% of Saudi Arabia’s GDP: IATA
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In Saudi Arabia, 141,100 people are directly employed in aviation, generating USD 14.3 billion of economic output, equal to 1.3% of total GDP.
The International Air Transport Association (IATA) released the Value of Air Transport study for the Kingdom of Saudi Arabia at IATA Aviation Day MENA. The report quantifies the substantial benefits that aviation (including aviation-related tourism) generates in terms of jobs and economic activity in the Kingdom.
The highlights of the study from 2023 data show that benefits generated by the wider supply chain, employee spending, and tourism activities contributing a total of USD 90.6 billion, equal to 8.5% of Gross Domestic Product (GDP) and 1.4 million jobs.
In Saudi Arabia, 141,100 people are directly employed in aviation, generating USD 14.3 billion of economic output, equal to 1.3% of total GDP. 62,000 are directly employeed by airlines, with a further 79,100 employed elsewhere in aviation and 1.1 million in aviation related tourism.
“Aviation is a catalyst for economic and social development. Saudi Arabia has understood this and is using connectivity as a key element of its national economic strategy under Vision 2030. Already, aviation supports 1.4 million jobs and 8.5% of the Kingdom’s GDP. This contributes substantially to the Kingdom’s prosperity today, and that will grow with investments, including those for infrastructure and talent development. Continued prioritization of aviation as a strategic sector supported by global standards, competitive costs and smart regulation will enhance Saudi Arabia’s global competitiveness, economic performance, and social development,” said Kamil Alawadhi, IATA’s Regional Vice President for Africa and Middle East.
Key priority for Saudi Arabia is to continue generating benefits from aviation. IATA outlines three key priorities for Saudi Arabia, continued collaboration and consultation with users and stakeholders, along with alignment to global standards and best practices, are vital; it is critical to work with the industry to ensure cost competitiveness; and ensuring a skilled workforce across all areas of aviation will enable the Kingdom to fulfill its potential as a regional and global aviation hub.
IATA has recently signed agreements with Saudi partners to provide skills training for over 1,000 aviation graduates and employees.