@TriffidPie - your interpretation of situation in JED/KWI/DXB is flawed.
Destination Absolute Market share Change
1 Dubai 86,013 (-6,748) 12.90% +0.01 (+0.09%)
2 Jeddah 63,021 (-4,585) 9.45% +0.06 (+0.62%)
Looking on KWI airport statistics, this could indicate that many Jeddah passengers go to Dubai.
But thee is also a possibility eh simply has so strong connections that he gets many passengers originating west of Kuwait loaded into both his flights to Dubai and Jeddah. After all, Wawe Arabia has 5700+ departures in Kuwai, and count on top of that 600+ departures of Sphynx Kuwait, and with mutual interline they act as one airline out of KWI.
So is it 1) or is it 2) ?
Easy answer, by looking on other servers.
For example, Idlewild.
KWI airport statistics show, that
Destination Absolute Market share Change
1 Dubai 63,527 (-3,469) 11.00% +0.30 (+2.80%)
2 Doha 41,283 (-2,076) 7.15% +0.22 (+3.23%)
3 Riyadh 34,385 (-1,915) 5.95% +0.16 (+2.70%)
4 Jeddah 29,012 (-1,765) 5.02% +0.11 (+2.20%)
We can see here that KWI-JED are 29,000 seats (and reverse JED KWI 29,350 seats) and KWI-DXB are 63,500 seats per week (and reverse DXB-JED 63,800). This means that even if all JED-KWI pax went to DXB (or all KWI-JED pax were arriving from DXB), they would still comprise less than 50% of traffic on KWI-DXB / DXB-KWI route.
So what would other 50% of that traffic be? Connections from West and North of Kuwait.
This leads to an important conclusion, and that is that the factor affecting your case are connections (and their lack thereof) from West and North of JED into DXB, or those connections are simply not competitive with megahub in KWI. In the Idlewild example above, the "best case" scenario for KWI airline would be to have 50% of passengers from KWI-JED route as going to or from DXB. The other 50 would be connections going someplace else than KWI. And in reverse, the KWI-DXB pax would be comprised only 25% as the "best case" scenario (best case for KWI airline) as originating from JED (or going to JED).
Conclusion: your problem is lack of connections from North and West of JED that would fill your flights to DXB, and the second problem, is the strong hub in KWI that gets pax who want to go from West of KWI (Africa and Europe) and North of KWI (Turkey, Middle East, Russia) t DXB. But your "problems" do not end there, there is also a huge hub in DOH (which I would say is competing with you more than the hub in KWI for connections to DXB, there are 88,000 seats from DOH to DXB and 20,000 to JED), and also a new airline that just started up in RUH will be your competitor or Saudi connections to DXB.
Airlinesim provides a lot of analytical tool itself, and when you couple them with AS Route Map (which is an excellent analytical tool to analyze passenger flows and connections), you can get pretty clear picture of what is going on.
Your best course of action: sign interlines with airlines in DOH, KWI, and other Arabic countries, such as Lebanon, Egypt, UAE, Iraq, Jordan etc. as well as in Europe. Any destination you fly to, should have a major interline partner (though AK would say to you you can do very well without interlines, but that can only experienced player such as AK do, you as a newbie would have no chance to survive without interlines).
Your problem is not that AS would be flawed. Your problem is you have so much strong competition in nearby hubs which suck all connecting passengers from West and North who could otherwise be traveling on your airline. Your only course of action right now is to sign interlines with those mega airlines, and become their feeder (for now, and if they wholeheartedly permit it), and as you generate cash cushion, you start adding flights especially to other Middle Eastern countries (with interlines there), and then flights to Europe (with interlines there), etc.