Saudi Arabia has taken another decisive step in its logistics push with the launch of Riyadh Cargo, the dedicated freight arm of Riyadh Air that will handle everything from express parcels to heavy industrial shipments. The new division is designed to turn the capital’s airport into a high-volume transfer point for global trade while giving the young airline a second revenue engine alongside passenger traffic.
By building a cargo business into Riyadh Air from the outset, Saudi planners are trying to compress a decade of growth into a few years and position Riyadh against established freight hubs in the Gulf, Europe, and Asia. I see this as a test of whether a state-backed carrier can use scale, infrastructure, and partnerships to break into a market long dominated by older airlines and integrators.
Riyadh Cargo’s launch and fleet-driven ambitions
The creation of Riyadh Cargo formalizes freight as a core pillar of Riyadh Air rather than a side business that might be added later. The carrier is activating belly-hold capacity across its long-haul network so that every passenger flight can also move commercial shipments, with the new unit marketed as the central point of contact for shippers and forwarders that want access to the airline’s routes in and out of Saudi Arabia. According to detailed reporting on the launch, the freight arm is being positioned to handle general cargo, time-sensitive consignments, and perishable goods as part of a broad product portfolio that will sit alongside the passenger operation of Riyadh Air.
The scale of the plan is anchored in the airline’s orderbook, which is built around a modern wide-body fleet of 122 aircraft that are expected to serve long-haul and high-density regional routes. I read that Riyadh Cargo is being structured so its operations can scale in lockstep with that fleet, allowing the airline to add capacity on key trade lanes as new jets arrive rather than retrofitting a freight strategy after the fact. The explicit focus on a wide spectrum of commodities, from e-commerce and pharmaceuticals to heavy machinery, suggests the carrier wants to be seen as a full-service logistics partner rather than a niche player.
Ground partnerships and operational backbone
Even the most ambitious cargo strategy fails without reliable ground handling, and Riyadh Cargo is trying to de-risk that from day one through a dedicated partnership in the kingdom. On the ground at King Khalid International Airport and other Saudi gateways, cargo handling and hub management are being delivered in cooperation with SATS Saudi Arabia, which brings experience in warehouse operations, ramp services, and integrated cargo systems. I see this as a pragmatic move that lets Riyadh Air plug into an existing logistics skill set instead of building every process internally from scratch.
The operational model is designed so that Services for freight customers, from acceptance and build-up to breakdown and delivery, are coordinated through a single hub structure in Riyadh. That approach is meant to minimize handoff friction and give shippers predictable cut-off times and transit windows, which are critical for high-value and temperature-sensitive goods. By aligning its ground partner with its network planning, Riyadh Cargo is trying to ensure that the physical flow of goods through Saudi Arabia can keep pace with the marketing promise of a new global hub.
Strategic fit with Vision 2030 and Saudi logistics policy
Riyadh Cargo does not exist in a vacuum, and its launch fits neatly into the broader economic transformation that Saudi Arabia is pursuing under Vision 2030. The national strategy includes a clear Focus on logistics, articulated by Crown Prince Mohammed bin Salman as a way to diversify away from oil and turn the kingdom into a crossroads for global trade. I see the decision to build a new cargo-centric airline as a direct extension of that policy, giving Saudi Arabia a homegrown carrier that can channel freight flows through its own airports instead of relying solely on foreign airlines.
One example of how this strategy is being operationalized is the expansion of King Khalid International Airport in Riyadh, where cargo capacity is being increased to 650,000 tonnes per year to support the expected growth in air freight volumes. By tying Riyadh Cargo’s network to that upgraded infrastructure, policymakers are trying to create a virtuous circle in which more flights attract more logistics investment, which in turn justifies further expansion. In my view, the alignment between the airline’s plans and the logistics ambitions set out by Saudi Arabia and Crown Prince Mohammed bin Salman is what gives the project its political backing and financial resilience.
Global partnerships and competitive positioning
To compete with entrenched players, Riyadh Cargo will need more than aircraft and terminals; it will need relationships with the freight forwarders and logistics companies that control much of the world’s cargo. Earlier cooperation between Riyadh Air and DHL Global Forwarding, Freight, which operates under the leadership of Tobias Maier as CEO for Middle East & Africa, signals that the airline understands the importance of plugging into existing supply chains. I interpret these ties as a way for Riyadh Cargo to secure baseline volumes and operational know-how while it builds its own direct relationships with shippers.
At the same time, the new cargo division is entering a crowded field that includes Gulf rivals with decades of experience and integrated express carriers that offer door-to-door services. Riyadh Cargo’s bet is that by combining a young, fuel-efficient fleet with a central geographic position and strong partners, it can carve out a role as a preferred transit point between Asia, Europe, and Africa. The challenge will be to differentiate on reliability, transit times, and value-added services rather than just on price, especially as other hubs respond to Saudi Arabia’s push to become a leading global carrier in freight as well as passengers.
Riyadh as a logistics hub and what comes next
The decision to unveil Riyadh Cargo is also a statement about the city’s future role in global trade. By activating belly-hold freight across its wide-body network, Riyadh Air is effectively turning every new route into a logistics corridor that can feed cargo into and out of the kingdom. I see this as a way to leverage passenger growth to support freight volumes, particularly on routes where dedicated freighters might not yet be viable but where there is still meaningful demand for capacity.
Looking ahead, the success of Riyadh Cargo will hinge on how quickly it can translate these structural advantages into consistent service performance and customer trust. The building blocks are there: a clearly branded cargo division, a fleet of 122 wide-bodies on order, a ground partnership with SATS Saudi Arabia Company, and a national policy framework that prioritizes logistics. If the airline can execute on schedule reliability, digital booking tools, and competitive transit times, I expect Riyadh’s role as a logistics hub to grow steadily, reshaping how freight moves through the Gulf and giving Saudi Arabia a stronger hand in the global air cargo market.
