Air Arabia is to establish a fourth regional division for its low-cost operation, located in Jordan, through a joint venture with Amman's Tantash Group.
The airline, in keeping with its other regional operations in Morocco and Egypt, will be individually branded as Air Arabia Jordan.
Details of the arrangement with Tantash Group, a diversified investment company with travel sector interests, are still preliminary.
But Air Arabia Group, which will manage the new airline, says the two sides have signed a joint-venture pact.
The carrier has yet to disclose fleet and route details but it will be based at Amman's Queen Alia International Airport and serve destinations in Europe, Africa and the Middle East.
Tantash Group chairman Mazen Tantash says the tie-up will "provide significant benefits for travellers based in Jordan and across the wider region".
Sharjah-based Air Arabia uses Airbus A320 aircraft and operates the same type at its Air Arabia Maroc and Air Arabia Egypt divisions in Casablanca and Alexandria respectively.