At the prestigious 55th Paris Air Show, which is taking place from June 16 to June 19, 2025, Saudi Arabia and Panama finalized a significant bilateral air services agreement. The agreement was signed by Abdulaziz Al-Duailej, the president of the Kingdom of Saudi Arabia’s General Authority of Civil Aviation (GACA), representing a major advance in the countries’ aviation cooperation.

This agreement underscores the commitment of both nations to improve air connectivity, enhance international aviation safety, and promote fair market competition under established international standards for safe air transport. The signing marks a pivotal moment in efforts to strengthen international aviation partnerships.

The air services agreement opens a new chapter in the aviation relationship between Saudi Arabia and Panama. It aims to establish a regulatory framework that guarantees safe and efficient air transport between the two countries. By adhering to the principles of the 1944 Chicago Convention, the agreement ensures that air services will maintain high safety, security, and operational efficiency standards.

Saudi Arabia’s involvement in this agreement is closely aligned with the kingdom’s Vision 2030, which aims to diversify its economy and reduce reliance on oil revenues. A key element of this vision is the expansion of the aviation sector, which is essential for economic growth and diversification. The agreement with Panama is a strategic move that supports Saudi Arabia’s ambition to become a global aviation hub.

Through its National Aviation Strategy, Saudi Arabia targets increasing its global air connectivity to 250 destinations and expanding its passenger transport capacity to 330 million annually by 2030. This ambitious plan is part of the kingdom’s strategy to enhance its role as an international gateway and strengthen economic ties with key global markets. The partnership with Panama is particularly significant for enhancing connections with Central America and promoting tourism and business exchanges.

The GACA has laid out an extensive roadmap for the development of the aviation industry in Saudi Arabia, including infrastructure expansion, fleet modernization, and major airport developments like King Abdulaziz International Airport in Jeddah and King Khalid International Airport in Riyadh. The agreement with Panama aligns with this long-term strategy, boosting the global presence of Saudi airlines in a competitive international aviation market.

The air services agreement will facilitate increased travel options between Saudi Arabia and Panama, enabling direct flights and simplifying international air travel. Both nations are set to benefit from this enhanced connectivity, which will create new opportunities in business, tourism, and trade.

For Saudi Arabia, this agreement provides access to the Central American market, which is crucial for diversifying its tourism sector. Meanwhile, Panama, recognized as a global logistics hub, will benefit from increased tourism to its attractions, including the Panama Canal and its rich cultural heritage.

Apart from tourism, the agreement is expected to enhance business exchanges, fostering collaboration in industries such as logistics and technology. Panama’s strategic position as a transshipment point for global trade complements Saudi Arabia’s expanding role as a commercial hub in the Middle East, encouraging investment and mutual economic growth.

A noteworthy aspect of the Saudi-Panama air services agreement is its focus on air safety and security, which are critical in international aviation. The agreement sets specific guidelines and safety standards for airline operations between both nations, ensuring that passengers can expect safe and reliable air travel.

Additionally, the agreement promotes fair competition among airlines, creating a level playing field. By regulating routes, airline operations, and pricing policies, the agreement prevents monopolistic practices and cultivates a competitive environment that enhances service quality and lowers travel costs for consumers.

Ultimately, this agreement is part of Saudi Arabia’s broader initiative to modernize its aviation industry and enhance its global influence. The kingdom is dedicated to adopting sustainable practices and technological innovations in aviation, including greener technologies and smart airport initiatives.

Saudi Arabia’s strategy for aviation growth emphasizes forming long-lasting partnerships, with the agreement with Panama exemplifying this effort. The kingdom has made considerable progress in enhancing air connectivity with other nations and expanding its airline fleet, positioning itself at the forefront of the evolving global aviation landscape.

The signing of the Air Services Agreement between Saudi Arabia and Panama at the Paris Air Show represents not just an aviation agreement, but also a commitment to international cooperation and economic development. As the aviation market becomes increasingly competitive, this partnership could pave the way for similar agreements with other countries, benefiting both nations and strengthening global aviation infrastructure.

Both Panama and Saudi Arabia are dedicated to collaborating on expanding travel opportunities, promoting sustainable development, and leveraging aviation as a key driver of economic growth. This air services agreement is only the beginning, with more partnerships likely to emerge as both countries aim to excel in the global aviation arena.