Air Arabia, the Middle East and North Africa’s largest low-cost carrier, reported a 34 per cent year-on-year jump in first-quarter net profit, buoyed by rising passenger demand and steady revenue growth.

The airline posted a net profit of Dhs355m ($96.6m) for the three months ending March 31, 2025, up from Dhs266m in Q1 2024.

Revenue rose 14 per cent to Dhs1.75bn during the period, Air Arabia said in a statement on Tuesday.

More than 4.9 million passengers flew with the Air Arabia Group across its six operating hubs between January and March 2025, marking an 11 per cent increase compared to the same period last year.

The average seat load factor stood at 84 per cent.

Air Arabia chairman says Air Arabia has had a strong start to the year

“The strong start to 2025 reflects Air Arabia’s continued resilience and strategic agility,” said Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia. “Our robust financial and operational performance underscores the success of our low-cost business model and disciplined cost management.”

The carrier attributed the profit growth to strong demand despite external pressures including Ramadan seasonality, volatile fuel prices, currency fluctuations, and global supply chain constraints.

Air Arabia’s total operating fleet grew to 83 Airbus A320 and A321 aircraft, with two new Airbus A320s added in January 2025. The airline also expanded its network by adding seven new routes, bringing the total to 217 across all hubs.

Available seat capacity increased by 11 per cent in Q1 2025 compared to the prior-year quarter.

“We remain committed to our strategic growth plans for 2025,” Al Thani added, noting the airline’s focus on expanding connectivity, tapping new markets, and delivering value-driven travel.

Read: Air Arabia reports record Dhs1.6bn pre-tax profit in 2024

Amazon Web Services (AWS), and Saudi Arabia’s state-backed AI company HUMAIN announced a strategic partnership to develop a first-of-its-kind “AI Zone” in the kingdom, backed by a joint investment exceeding $5bn.

The new AI Zone, aimed at accelerating AI adoption locally and globally, will include dedicated AWS AI infrastructure, UltraCluster networks, and services such as Amazon Bedrock, Amazon Sagemaker, and Amazon Q.

The initiative aligns with Saudi Arabia’s Vision 2030 goals.

The partnership builds on AWS’s previously announced $5.3bn investment to establish a cloud infrastructure region in Saudi Arabia by 2026.

The AI Zone marks an additional commitment to expand cloud and AI capabilities in the region.

“This new collaboration with HUMAIN lays the foundation for the intelligent era, accelerates our innovation momentum, grows our talent, and reinforces Saudi Arabia’s position as a global partner of choice in the age of AI,” said Abdullah Alswaha, Saudi Arabia’s Minister of Communications and Information Technology.

As part of the partnership, HUMAIN will utilise AWS technologies to deliver AI solutions for customers and co-develop a unified AI agent marketplace to simplify AI deployment across government services.

Building LLMs

The two entities also plan to develop large language models (LLMs), including Arabic-focused models, to support AI adoption in key sectors such as healthcare, education, energy, and government.

“This collaboration to build an AI Zone in Saudi Arabia will enable innovations across all industries using AWS’s advanced AI offerings,” said Matt Garman, CEO of AWS. “Together, we will empower customers with cost-effective and secure cloud technologies, fuel innovation and economic growth across the nation, and enable HUMAIN to appeal to customers globally.”

The initiative includes the establishment of a Generative AI Innovation Center, in partnership with HUMAIN, to fast-track generative AI (genAI) adoption for startups, enterprises, and public institutions.

AWS-HUMAIN alliance to spur startup growth

The partnership will also bolster Saudi Arabia’s startup ecosystem. AWS will provide startups access to cloud tools and resources, including AWS Activate. The kingdom saw a record $750m in venture capital funding in 2024, the highest in the Middle East and North Africa, according to MAGNiTT.

AWS is also expanding its training and certification programs to build AI and cloud expertise among Saudi nationals. It has committed to training 100,000 citizens, including 10,000 women, through initiatives such as the Amazon Academy and the AWS Saudi Arabia Women’s Skills Initiative.

“By leveraging AWS’s world-class cloud infrastructure and AI expertise and HUMAIN’s full-stack AI capabilities, we are creating an offering that will attract global investment and talent,” said Tareq Amin, CEO of HUMAIN.

According to PwC, AI is expected to contribute $130bn to Saudi Arabia’s economy by 2030 — over 40 per cent of the projected AI economic impact in the Middle East.

Read: HUMAIN, NVIDIA join forces to drive AI development in Saudi Arabia

Saudi Crown Prince Mohammed bin Salman and US President Donald Trump co-chaired the Saudi-US Summit on May 13 at the Royal Court in Al-Yamamah Palace, where both leaders signed a Strategic Economic Partnership aimed at deepening bilateral cooperation across multiple sectors, according to the Saudi Press Agency (SPA).

The summit focused on enhancing the long-standing strategic partnership between the two countries, with discussions spanning regional and global developments, security and stability, and key issues of mutual interest.

During the summit, Crown Prince Mohammed and President Trump oversaw the exchange and announcement of several key agreements and memoranda between Saudi and US government entities.

Among the agreements was a memorandum of understanding for energy cooperation between Saudi Arabia’s Ministry of Energy and the US Department of Energy, exchanged by Saudi Energy Minister Prince Abdulaziz bin Salman and US Energy Secretary Chris Wright.

A memorandum of intent on defenc modernisation was exchanged between Saudi Defense Minister Prince Khalid bin Salman and US Secretary of Defense Pete Hegseth, outlining plans to upgrade the capabilities of the Saudi Armed Forces, SPA reported.

List of Saudi-US agreements

Further agreements announced included:

• A memorandum of cooperation in mining and mineral resources between Saudi Arabia’s Ministry of Industry and Mineral Resources and the US Department of Energy.

• A letter of intent to enhance joint cooperation on ammunition, training, maintenance, and support services for the Saudi Ministry of the National Guard.

• A memorandum of understanding between the Saudi Ministry of Interior’s International Partnership Program and the FBI under the US Department of Justice.

• A letter of intent on defense health capabilities between the Saudi and US defense ministries.

• A memorandum of understanding for judicial cooperation between the Saudi Ministry of Justice and the US Department of Justice.

• An executive agreement on space cooperation between the Saudi Space Agency and NASA for collaboration on the Space Weather CubeSat aboard the Artemis II Mission.

• A Customs Mutual Assistance Agreement and a Protocol of Amendment to the Saudi-US Air Transport Agreement.

• A memorandum of understanding on medical research between the Saudi National Institute of Health Research and the US National Institute of Allergy and Infectious Diseases.

• Two collaboration agreements between the Royal Commission for AlUla and the Smithsonian Institution, covering the National Zoo and Conservation Biology Institute, and the National Museum of Asian Art.Read:

Read: Trump’s Saudi Arabia visit unlocks $600bn in investment deals

HUMAIN, the newly established AI company of Saudi Arabia’s Public Investment Fund (PIF), has entered into a strategic partnership with NVIDIA, to advance Saudi Arabia’s position as a global leader in artificial intelligence (AI), GPU cloud computing, and digital transformation.

The two organisations will leverage NVIDIA’s cutting-edge platforms and expertise to propel Saudi Arabia’s AI capabilities, driving innovation and growth in the kingdom and around the world.

“Our partnership with NVIDIA underscores HUMAIN’s mission to position Saudi Arabia as an international AI powerhouse,” said Tareq Amin, CEO of HUMAIN. “By combining state-of-the-art infrastructure, frontier AI models, immersive digital platforms, and human capital development, we aim to create a new AI-driven future for the kingdom.”

Read: Saudi Crown Prince launches HUMAIN

Powering the AI factories of tomorrow

As part of the collaboration, HUMAIN will invest heavily in building AI factories within Saudi Arabia, with a projected capacity of up to 500 megawatts over the next five years.

These factories will be powered by several hundred thousand of NVIDIA’s most advanced GPUs, marking a major leap in the country’s AI capabilities.

The first phase of deployment will include an 18,000 NVIDIA GB300 Grace Blackwell AI supercomputer, utilizing NVIDIA InfiniBand networking. These hyperscale AI data centers will serve as the foundation for developing and deploying sovereign AI models at scale, supporting industries in Saudi Arabia and across the globe in accelerating digital transformation.

Unlocking the era of physical AI

HUMAIN will also deploy the NVIDIA Omniverse platform as part of its multi-tenant system to usher in the next era of physical AI and robotics.

The platform will facilitate the simulation, optimisation, and operation of physical environments through advanced human-AI-led solutions.

This partnership will allow industries such as manufacturing, logistics, and energy to create fully integrated digital twins, enhancing efficiency, safety, and sustainability. It will also accelerate Saudi Arabia’s transition toward Industry 4.0.

HUMAIN and NVIDIA: Enabling workforce transformation

To ensure the success of this transformative journey, HUMAIN and NVIDIA will collaborate on large-scale upskilling initiatives.

These initiatives aim to provide thousands of Saudi citizens and developers with hands-on experience in AI, simulation, robotics, and digital twin technologies.

The effort will contribute to building a robust national AI ecosystem, aligning with Saudi Arabia’s Vision 2030 goals of economic diversification and digital leadership.

“AI, like electricity and the internet, is essential infrastructure for every nation,” said Jensen Huang, founder and CEO of NVIDIA. “Together with HUMAIN, we are building the AI infrastructure for the people and companies of Saudi Arabia to realise the bold vision of the kingdom.”

Advancing digital infrastructure

Engineer Abdullah Alswaha, Minister of Communications and Information Technology, praised the partnership, calling it a turning point for the kingdom’s digital and industrial landscape.

“This collaboration with HUMAIN and NVIDIA lays the groundwork for a new industrial revolution, underpinned by advanced infrastructure, talent, and global ambition,” Alswaha said. “Saudi Arabia continues to lead as a partner of choice in shaping the future of AI.”

This partnership is set to play a critical role in realising the kingdom’s ambition to lead the world in AI and advanced digital infrastructure, creating a new community of intelligent technology and empowered people.

“We are building the capacity, capability, and infrastructure necessary to shape a future powered by AI,” said Amin. “This bold step forward will enable Saudi Arabia to realise its vision and become a global leader in AI and digital transformation.”