Air Arabia was established on February 3, 2003 and started operations on October 29, 2003. Air Arabia can be safely said to be the first budget airline in the Middle East region. It was formed by Amiri decree issued by Dr Sheikh Sultan Bin Mohamed Al Qassimi. It is owned by Sharjah Civil Aviation Department (50%), Sharjah Airport International Free Trade Zone Authority (SAIF Zone) (10%), and other founders include Sharjah based and Bahrain based strategic investors (40%).

Air Arabia is a low-cost airline based in Sharjah in the United Arab Emirates. It operates scheduled services throughout the Middle East and to the Indian subcontinent. Its main base is Sharjah International Airport. Air Arabia is a member of the Arab Air Carriers Organization.