Cruise Saudi marks five years reshaping Red Sea cruising

Five years after its creation to spearhead Saudi Arabia’s entry into the global cruise market, Cruise Saudi is marking an anniversary that highlights how rapidly the Red Sea kingdom has moved to position itself as a new hub for sea tourism.

From investment vehicle to Red Sea cruise gateway

Cruise Saudi was launched in early 2021 as a wholly owned company of the Public Investment Fund, with a mandate to develop a full cruise ecosystem around Saudi Arabia’s long Red Sea and Arabian Gulf coastlines. Publicly available information describes the company as a key pillar of the country’s Vision 2030 strategy to diversify the economy and build a tourism sector centered on new destinations and visitor experiences.

Based in Jeddah, Cruise Saudi was set up to bridge sea and land operations by creating port infrastructure, coordinating shore excursions and marketing itineraries that introduce international guests to Saudi heritage, culture and natural landscapes. The company’s role spans everything from terminal design to guest services, aiming to align cruise offerings with broader national tourism targets.

Reports indicate that the first operational milestone came just months after the company’s creation, when the Saudi Ports Authority and Cruise Saudi inaugurated the kingdom’s first dedicated cruise terminal at Jeddah Islamic Port in July 2021. That opening coincided with the first large cruise vessel to homeport in Saudi Arabia and sail to regional destinations, putting Jeddah on the eastern Mediterranean and Red Sea cruise map for the first time.

Since then, Jeddah has emerged as the primary gateway for seasonal and year-round itineraries, while additional ports such as Yanbu and other Red Sea destinations have been gradually incorporated into cruise routes. Official investment profiles highlight the ambition to scale this network to serve more international lines and to support future homeporting on both the Red Sea and the Gulf.

New terminals, partnerships and urban megaprojects

Terminal expansion has been central to Cruise Saudi’s strategy. In Jeddah, the first cruise facility at the Islamic Port was followed by planning work on an international luxury cruise terminal linked to the Jeddah Central waterfront megaproject. A memorandum of understanding between Cruise Saudi and the Jeddah Central Development Company outlined plans to integrate the terminal into a wider mixed-use district that is being developed as part of Vision 2030.

Planning codes released by Saudi maritime and tourism authorities show how new Red Sea cruise terminals are being designed around updated international standards, with an emphasis on passenger flow, security, and integration with surrounding urban areas. These guidelines are intended to support multiple ports along the coast as they prepare to receive larger vessels and more frequent calls.

Partnerships with global cruise lines have also been a major driver. Since 2021, several international operators have added Saudi ports to regional routes, with some ships using Jeddah as a turnaround port for eastern Mediterranean and Red Sea itineraries. Industry yearbooks and trade reports point to growing interest among operators in using Saudi ports as both ports of call and homeports, despite broader geopolitical challenges affecting some Red Sea sailings.

The planned integration of cruise terminals with airports, city centers and tourism projects such as waterfront promenades and cultural districts is presented as a way to extend visitor stays and spending beyond a single port call. This approach positions Cruise Saudi as both an infrastructure developer and a partner to wider urban regeneration schemes on the Red Sea coast.

Homegrown brand AROYA Cruises and passenger growth

A milestone in the company’s development came in mid-2023, when Cruise Saudi unveiled AROYA Cruises as a new cruise line designed around regional and Saudi guests. According to corporate announcements, the line is positioned as a “premium” product tailored to local preferences, with Arabic as a core service language and entertainment and dining concepts adapted to family and cultural expectations.

In late 2024, publicly released statements reported the arrival of AROYA Cruises’ first ship in Jeddah, ahead of commercial sailings in the Red Sea. The vessel’s deployment from Jeddah Islamic Port is intended to anchor a steady program of itineraries that operate from Saudi ports rather than only visiting them as part of foreign-flag lines’ regional routes.

National statistics and local press coverage indicate that passenger numbers on Saudi cruise itineraries have been rising from a very low base, with hundreds of thousands of visitors moving through the country’s ports in recent seasons. While detailed, consolidated figures for all cruise-only passengers remain limited, Cruise Saudi’s own public targets point to welcoming around 1.3 million cruise guests annually by 2035, supported by expanded terminals and a larger portfolio of routes.

Analysts following Gulf tourism trends note that a domestically branded cruise line gives Saudi Arabia greater control over capacity, itinerary planning and onshore experiences. It also allows Cruise Saudi to work directly with local tour operators, hotels and transport providers to build packages that encourage pre- and post-cruise stays in cities such as Jeddah, Yanbu and other emerging Red Sea resorts.

Sustainability, regulation and managing regional headwinds

Cruise Saudi has repeatedly highlighted sustainability in its public material, with references to environmental standards in port design and shore power readiness where feasible. A letter of commitment published in 2024 outlined the company’s decision to join the United Nations Global Compact, signaling alignment with international principles on human rights, labor, the environment and anti-corruption in its operations and supply chains.

At the regulatory level, updated planning and design codes for Red Sea cruise terminals set out criteria around coastal protection, waste management, energy efficiency and community impact. These frameworks are intended to ensure that as cruise capacity grows, port expansion takes place within defined environmental and safety parameters.

The regional context remains complex. Global coverage has documented how heightened security risks in parts of the Red Sea have prompted some cruise operators to reroute or cancel itineraries in recent seasons. Despite this, Saudi authorities and industry partners have continued to invest in long-term cruise infrastructure, presenting Red Sea cruising as a structural component of the country’s tourism diversification strategy rather than a short-term trend.

Observers note that Cruise Saudi’s approach of combining infrastructure development, regulatory coordination and a homegrown cruise brand may help it navigate periodic disruptions. By focusing on itineraries that remain within Saudi waters or connect to nearby regional ports perceived as stable, the company aims to build a resilient base of cruise activity that can expand further as conditions allow.

Positioning Saudi Arabia on the global cruise map

Five years after its launch, Cruise Saudi’s evolution illustrates how quickly a state-backed entity can shape a new segment in an emerging tourism market. Jeddah’s transformation into a functioning cruise gateway, the rollout of planning codes for Red Sea terminals and the launch of AROYA Cruises all point to an ecosystem that is moving from pilot phase to scale-up.

Travel industry commentary suggests that Saudi Arabia’s big test will be converting infrastructure and branding into sustained demand from both international and regional travelers. Easing visa processes, expanding flight connections to cruise gateways and building awareness of lesser-known Red Sea destinations will be critical to attracting first-time visitors.

Competition in the wider region is also intensifying, with established cruise hubs in the United Arab Emirates and Egypt investing in their own terminals and marketing. Cruise Saudi’s bet is that a combination of new ports, culturally specific experiences and integration with Vision 2030 megaprojects will give Saudi Arabia a distinctive position in the long-haul and regional cruise markets.

As the company marks its fifth year, observers are watching whether forthcoming seasons deliver more ships homeporting in Saudi ports, higher occupancy on AROYA Cruises and a broader spread of itineraries along the Red Sea. The answers will help determine how firmly Saudi Arabia can secure its place on the global cruise map in the decade leading up to 2035.