top of page

Virgin Atlantic Touches Down in Riyadh! Why Sir Richard Branson (and Everyone Else) Is Suddenly Flying Toward Saudi Arabia

Apr 24

5 min read



When Sir Richard Branson walked down the air-bridge into Riyadh’s King Khalid International Airport on 23 April 2025, he did more than inaugurate Virgin Atlantic’s first Saudi route. He sent a market signal: the world’s most audacious brands now see the Kingdom as a core growth engine. Branson’s presence, flanked by CEO Shai Weiss and Saudi Tourism Authority chief Fahd Hamidaddin was the photo-op that crystallised Saudi Arabia’s leap from aspirational to unavoidable in global travel.



Below we unpack why Branson is there, why so many Western companies are following, what incentives lie behind the headlines, where the pitfalls remain, and how specialist advisers like R Consultancy Group (RCG) help firms turn curiosity into contracts.


1. Saudi tourism’s pivot from promise to performance


  • Vision 2030’s tourism bet is paying off.  In 2019 the Kingdom set itself a target of 100 million annual visitors by 2030; it smashed that goal five years early with 106 million visits in 2023 and has now raised the bar to 150 million domestic and 100 million international travellers by 2030.


  • Money is flowing.  More than SAR 300 billion (£75 bn) of public-sector capital is earmarked for tourism, culture and sports mega-projects, NEOM, Diriyah, Red Sea Global, Qiddiya and another SAR 100 bn is expected from private investors.


  • Routes are multiplying.  Beyond Virgin Atlantic, British Airways will resume Jeddah flights this summer, Wizz Air now links eight European cities to Dammam, and new flag-carrier Riyadh Air plans 100 destinations by 2030.


Branson’s calculation is simple: tourism demand is real, yields are premium, and first-mover routes lock in market share.





2. Why international brands are suddenly welcome

Reform / incentive

What it means for foreign firms

Fast fact

100 % foreign ownership outside “strategic” sectors

No need for a local partner to hold equity; joint ventures remain optional

MISA “instant licence” takes <24 hrs for many service activities

Tourism Investment Law (2023)

10-year tax relief, duty-free machinery imports, fast-track visas for project staff

Covers hotels, attractions, tour operators

E-visa + GCC visa

10-minute online tourist visa for 63 nationalities; new unified GCC tourist visa expected by late 2025

Arrivals jumped 65 % y-on-y in Q1 2025

Generous airline incentives

Fee discounts at Riyadh and Red Sea airports; co-marketing with STA

Virgin negotiated reduced navigation charges for first 12 months

Gigaproject procurement pipelines

NEOM, Diriyah and Red Sea each publish rolling tenders in English, paid in hard currency

NEOM issued US$7 bn in RFPs in 2024


For airlines, the clincher is yield plus partnership: Virgin signed a reciprocal-loyalty deal with Saudia and is already in talks with Riyadh Air for interline feed.



  1. Mind the Ground Realities—Five Factors You Must Master


Before you rush to reserve a ribbon-cutting in Riyadh, take a moment to look beyond the runway lights. Success in Saudi Arabia demands early attention to five practical realities.


1. Regulatory relay races.An initial “yes” from one ministry is rarely the final stamp. A new airline route, school licence or live-event permit can require parallel signatures from GACA, the Saudi Tourism Authority, or the Ministry of Education. Without a local adviser who physically walks the paperwork between offices and tracks expiry dates, approvals can languish for weeks.


2. Cultural localisatio. images, product names and even on-board services must align with Saudi norms. Virgin Atlantic, for example, is already tweaking its inflight menu and Riyadh-facing ad creatives. Budget time for an Arabic brand audit and use Saudi-based creatives to adapt visuals while preserving brand DNA.


3. Cash-flow timing.Government and giga-project contracts often pay on 60- to 120-day cycles. Suppliers who fail to negotiate milestone invoices—mobilisation, mid-project, completion—find themselves funding the job out of pocket. Secure ministry-stamped payment certificates up-front to keep cash moving.



4. Saudisation (Nitaqat) quotas.The most attractive incentives come with hiring ratios for Saudi nationals. Build localisation into the org chart from day one, partner with Saudi recruiters and universities, and turn a compliance requirement into a reputational plus.



5. ESG and media 2030’s megaphone amplifies both opportunity and criticism. Publish a concise sustainability-and-governance statement aligned with national goals, say, 30 % renewable energy use or 40 % female workforce, and update progress quarterly. You’ll satisfy global investors and defuse headline risk.


None of these factors is a deal-breaker, but ignoring them can add months of delay and millions in cost. Companies that tackle them early, preferably with on-the-ground expertise, are the ones that taxi from memorandum to money in the bank while slower rivals keep circling the runway.





4. How RCG de-risks the Saudi landing


RCG has spent the past decade guiding education, tourism and infrastructure clients through the Kingdom’s maze. For companies inspired by Virgin’s splashdown but unsure where to start, RCG offers three layers of support:


Service

What it looks like

Benefit

Phase 1 – Opportunity mapping & licence path

Market-size modelling, MISA licence strategy, entity-setup comparison

Clear “go / no-go” decision within four weeks

Phase 2 – Door-opening & positioning

Curated introductions (ministers, giga-projects, PIF funds), localisation of decks, cultural briefings

Cuts six–nine months off relationship-building

Phase 3 – Deal acceleration & compliance

Term-sheet coaching, Saudi labour-law compliance, VAT setup, ongoing ESG communications support

Moves a project from MoU to revenue without political mis-steps


5. What’s next for Virgin—and for you


Virgin Atlantic’s inaugural Heathrow–Riyadh service is just the appetiser:

  • Virgin Hotels is exploring mixed-use sites in Riyadh’s Diplomatic Quarter.

  • Virgin Voyages has scouted Red Sea anchorages for winter 2026 cruises.

  • A codeshare with Saudi start-up Riyadh Air could give Virgin seamless access to 100 onward destinations by decade’s end.


For businesses in aviation, hospitality, education or live entertainment, the runway lights are firmly green:


  • Tourist arrivals are now forecast to rise 11 % CAGR through 2030—double the global average.


  • Spend per visitor is one of the world’s highest (US$1 600), driven by long-haul leisure and premium religious travel.


  • First-mover advantage still exists; in many verticals the competitive field is astonishingly thin.


land early, land wisely


Sir Richard Branson’s charisma may grab the headlines, but the story behind his Riyadh touchdown is systemic: Vision 2030 is translating policy into pipelines, incentives into P&L.

The catch is that Saudi Arabia remains a complex jurisdiction where cultural nuance, licence classes and unofficial gatekeepers can derail the unprepared.


That’s where advisers such as RCG come in, turning the bold idea of “let’s enter Saudi” into a structured sequence of compliant, relationship-rich moves that shorten time to revenue and safeguard reputation.


Branson’s message from the tarmac rings true for everyone else: the future of travel (and business) is arriving faster than expected, and it’s landing in Saudi Arabia first.  The only question is whether you board the flight, or watch your competitors taxi past.


Related Posts

Comments

Κοινοποιήστε τις σκέψεις σαςΓίνετε ο πρώτος/η πρώτη που θα γράψει σχόλιο.
bottom of page