Wataniya Airways has emerged as a new operation after a predecessor with the same name ceased flying in 2011.
Airbus has disclosed a memorandum of understanding covering the 25 jets at the Dubai air show. No engine selection has been given.
The carrier, which restarted services in July, has a pair of A320s.
Wataniya chairman Ali Al Fouzan says the deal means the carrier will be "upgrading and further enhancing" its fleet.
(David Kaminski-Morrow - FlightGlobal News)