Saudi Arabia Aviation Fuel Market

Market Overview:

Saudi Arabia aviation fuel market size reached USD 3,071.1 Million in 2024. The market is projected to reach USD 8,987.4 Million by 2033, exhibiting a growth rate (CAGR) of 12.7% during 2025-2033. The increasing advances in aviation technology, such as more fuel-efficient engines and aircraft design, which contribute to lower fuel consumption per passenger mile, are fueling the Saudi Arabia aviation fuel market share.

Aviation fuel, commonly known as aviation gasoline (avgas) for piston-engine aircraft or jet fuel for turbine-engine aircraft, is a specialized type of fuel designed for use in aviation applications. Avgas is a high-octane gasoline used in piston-engine aircraft, while jet fuel is a kerosene-based fuel utilized in jet and turbine engines. These fuels undergo stringent quality control measures to ensure safety, efficiency, and optimal engine performance. Aviation fuels are formulated to withstand the extreme temperature variations and high altitudes encountered during flight. Jet fuel typically adheres to specifications such as Jet A or Jet A-1, with additives to enhance performance and reduce the risk of freezing at high altitudes. The aviation industry relies heavily on these carefully engineered fuels to power aircraft, emphasizing the critical role they play in ensuring the safety and reliability of air travel.

Key Trends of Saudi Arabia Aviation Fuel Market:

Increasing tourism activities

Rising tourism activities are fueling the market growth. Saudi Arabia experienced 656% increase in leisure tourism in 2024, according to the Tourism Ministry. As the country is promoting tourism under Vision 2030, including religious tourism for Hajj and Umrah and leisure tourism at destinations like AlUla and the Red Sea, more visitors are traveling by air. Airlines are operating additional flights to meet the rising demand, which is leading to higher utilization of aviation fuel. New airports and expanded routes are also supporting this growth by improving connectivity to tourist destinations. The government’s efforts to simplify visa processes and host international events are further attracting tourists, boosting air traffic. As tourism is becoming a major contributor to the economy, the aviation sector is thriving. This results in greater fuel demand for both commercial and charter flights.

Rising investments in air defense and military aviation

Continued investments in air defense and military aviation are stimulating the market growth. As per the government officials, since 1960, Saudi Arabia’s military expenditure increased at an annual pace of 4.5%, totaling USD 75.8 Billion in 2024. As the government is strengthening its defense capabilities, it is expanding its air fleet, conducting regular training exercises, and upgrading existing military aviation infrastructure. These activities require a consistent and large supply of aviation fuel to power fighter jets, transport planes, surveillance aircraft, and helicopters. With rising geopolitical concerns and the need to ensure national security, the frequency of military flights and operations continues to grow. Fuel demand is also rising from joint military exercises, regional patrols, and the development of new air bases. This consistent use of aviation fuel for defense purposes is contributing significantly to the overall fuel employment in the country.

Ongoing development of advanced airport infrastructure

The ongoing development of advanced airport infrastructure is positively influencing the market. As the country is building new airports and upgrading existing ones with modern facilities, it is supporting the growth of both domestic and international flights. In January 2025, the General Authority of Civil Aviation in Saudi Arabia planned to showcase investment prospects exceeding USD 100 Billion at the World Economic Forum in Davos. The event acted as the site for displaying essential aviation initiatives, including airports, airlines, cargo logistics, and ground support services. Larger and more advanced airports can handle more aircraft, leading to higher fuel utilization. These developments include better fueling systems, larger storage facilities, and faster refueling processes, which improve turnaround times for airlines. Improved infrastructure also attracts more airlines to operate in the region, expanding flight frequency and destinations. With the goal of becoming a major global aviation hub, Saudi Arabia’s investment in airport infrastructure aligns with rising air traffic and tourism, directly catalyzing the demand for aviation fuel across commercial, private, and cargo aviation segments.

Growth Drivers of Saudi Arabia Aviation Fuel Market:

Strategic geographic location

Strategic geographic location is impelling the market growth. Airlines are using Saudi airports for stopovers and refueling due to shorter flight paths and efficient infrastructure. This central location attracts international carriers and increases air traffic through the country’s airports, driving the demand for aviation fuel. Major international routes pass through the region, making it ideal for both passenger and cargo flights. The government’s focus on developing international hubs like Riyadh and Jeddah enhances connectivity and encourages more long-haul flights to operate through Saudi Arabia. As flight frequency is increasing, the need for reliable fuel services is rising. This constant movement of aircraft supported by Saudi Arabia’s location leads to steady growth in aviation fuel employment across commercial and logistic sectors.

Broadening of low-cost carriers

The widening of low-cost carriers is offering a favorable market outlook. As budget airlines are growing their fleets and introducing more routes to serve a wider population, flight frequency is rising, leading to greater use of aviation fuel. These carriers make air travel more affordable and accessible to a broader section of the population, encouraging higher passenger volumes and driving the demand for air services. Low-cost airlines also support tourism and business travel by connecting secondary cities and remote areas, which were previously underserved. The utilization of fuel-efficient aircraft in large numbers contributes to overall fuel usage due to increased operations. As the low-cost airline segment is expanding to meet rising demand, the overall number of flights is growing, supporting the steady increase in aviation fuel employment in Saudi Arabia.

Privatization of the aviation sector

Privatization of the aviation sector is attracting investments to improve airport operations, infrastructure, and efficiency. As the government is opening the sector to private players, it is encouraging modernization of fueling systems, expansion of storage facilities, and adoption of advanced refueling technologies. Private operators bring innovation and competitive services, which help increase flight capacity and reduce turnaround times, leading to more fuel utilization. Privatization also supports the development of new airports and upgrades to existing ones, enhancing the overall capacity to handle domestic and international flights. With better management and performance incentives, the sector is becoming more dynamic, attracting more airlines and increasing flight frequency. This growing activity across the aviation network results in higher demand for aviation fuel.

Saudi Arabia Aviation Fuel Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on fuel type, aircraft type, and end use.

Fuel Type Insights:

• Aviation Turbine Fuel (ATF)
• Avgas
• Sustainable Aviation Fuel (SAF)

The report has provided a detailed breakup and analysis of the market based on the fuel type. This includes aviation turbine fuel (ATF), avgas, and sustainable aviation fuel (SAF).

Aircraft Type Insights:

• Fixed Wing
• Rotary Wing

A detailed breakup and analysis of the market based on the aircraft type have also been provided in the report. This includes fixed wing and rotary wing.

End Use Insights:

• Commercial
• Military
• Others

The report has provided a detailed breakup and analysis of the market based on the end use. This includes commercial, military, and others.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Aviation Fuel Market News:

• June 2025: Riyadh Air, the newly established premium international airline in Saudi Arabia, made a firm order for 25 A350-1000 planes. The A350 could function with as much as 50% sustainable aviation fuel (SAF). Airbus intended for all its planes to be fully capable of using SAF by 2030.
• February 2025: The Dangote Refinery reported it delivered two shipments of aviation fuel to Saudi Aramco, the state oil corporation of Saudi Arabia. Since starting production in 2024, the refinery consistently raised its output, hitting 550,000 barrels daily.
• February 2025: A deal involving Red Sea Global, daa International, and Arabian Petroleum Supply Co. would provide the Red Sea International Airport with a 35% SAF mixture. The agreement signified an important advance in lowering aviation-related carbon emissions in the Kingdom.
• January 2025: i6 Group, the prominent aviation fuel management technology leader, established a pioneering partnership with United Fuel Company (UFC) in Saudi Arabia, the well-known plane fueling service provider at King Khalid International Airport (KKIA) in Riyadh. Through this partnership, UFC would adopt i6’s Fusion6 digital refueling system, improving operational efficiency and aiding Saudi Arabia’s Vision 2030 goals.
• December 2024: The government of Saudi Arabia revealed plans to explore the possibility of establishing a SAF production facility in the nation. The action resulted from a partnership involving the state-owned oil giant Aramco, the French renewable energy firm TotalEnergies, and the Saudi Investment Recycling Company (SIRC). The concept involved producing SAF by transforming locally sourced waste like used cooking oil and animal fats.
• November 2024: The government of Saudi Arabia implemented an ambitious aviation plan, investing USD 100 Billion from both governmental and private sector sources. It aimed to create two international long-haul connecting hubs in Riyadh and Jeddah to enhance its status in global aviation. It placed greater emphasis on sustainability in its aviation industry as part of Vision 2030, in line with worldwide sustainability movements to create and incorporate SAF and eco-friendly infrastructure.

Saudi Arabia Aviation Fuel Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia aviation fuel market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia aviation fuel market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia aviation fuel industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.