Panama Seeks to Boost Air Connectivity Through Agreement with Saudi Arabia
The Cabinet Council of Panama approved Bill 7-25 this Tuesday, authorizing an Air Services Agreement (ASA) between Panama and the Kingdom of Saudi Arabia. This initiative seeks to establish the legal framework for future direct routes, strengthening the country’s position as the leading intercontinental hub in Latin America.
A Legal Framework for the Expansion of the Hub of the Americas
The primary objective of the recently approved agreement is to regulate air services between both nations under conditions of reciprocity. Following the Cabinet’s decision, Foreign Minister Javier Martínez Acha has been authorized to present the proposal to the National Assembly for legislative consideration.
This agreement is not a recent development; it was originally signed on June 16, 2025, in Paris. On that occasion, Rafael Bárcenas, Director of the Civil Aviation Authority (CAA) of Panama, and Abdulaziz bin Abdullah Al-Duailej, President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, sealed the commitment that is now moving toward final ratification.
Traffic Rights and Technical Operations
The document establishes the fundamental rights that will allow designated airlines to operate efficiently:
- Overflight Rights: Airlines may cross the territory of the other State without the need to land.
- Technical Stops: Landings for non-commercial purposes are authorized.
- Commercial Services: The capacity to make stops for the purpose of embarking and disembarking passengers, cargo, and mail on previously agreed routes.
- Equal Opportunity: The route schedule allows operations from points in Panama to destinations in Saudi Arabia and intermediate points or beyond, under principles of competitive equity.
→ Tocumen Airport (Panama) Starts 2026 with Historic Record: Over 2 Million Passengers in January
Strategic Value of the Middle East Market
Currently, there are no direct flights between Panama and Saudi Arabia, nor to any other nation in the Gulf region. Travelers must make connections at hubs in Europe or North America. The consolidation of this agreement is vital for several reasons:
- Global Connectivity: Saudi Arabia possesses a robust network connecting more than 200 airports in nearly 70 countries.
- World-Class Infrastructure: The country features key hubs such as King Khalid International Airport in Riyadh, King Abdulaziz International Airport in Jeddah, and King Fahd International Airport in Dammam.
- Regional Potential: Currently, no direct flights exist between Saudi Arabia and Latin America, forcing passengers from cities like São Paulo or Mexico City to transit through Dubai, Istanbul, or Europe.
“For Panama, this agreement represents a further step in its strategy to position itself as one of the continent’s primary air connection centers, integrating markets with growing weight in global trade, tourism, and investment”.
Toward a Network of Gulf Connections
This effort complements other diplomatic and commercial initiatives by Panama. In February 2026, authorities resumed talks to explore a direct connection with Dubai, based on the existing agreement with the United Arab Emirates.
While these agreements do not guarantee the immediate launch of flights, they do remove regulatory barriers so that airlines can evaluate the commercial viability of the routes. The next step for the agreement with Saudi Arabia will be the discussion in the National Assembly, where its final approval will be decided to officially open this new gateway to the Saudi market.
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