Saudi Arabia announced the creation of a new national airline “Riyadh Air,” wholly owned by the Public Investment Fund.
The airline seeks to enable Riyadh to become a gateway to the world and a global destination for transportation, trade, and tourism.
Operating from the Saudi capital as its hub, the airline is expected to add $20 billion to the Kingdom’s non-oil gross domestic product growth and create more than 200,000 direct and indirect jobs.
Riyadh Air will also act as a catalyst for the Saudi National Transport and Logistics Strategy and the National Tourism Strategy by boosting air transportation alternatives, increasing cargo capacity, and, as a result, increasing international passenger traffic.
The new airline is the latest in “a huge package of projects” that will “consolidate our country’s position as an international hub for aviation and a global logistics center.
The launch of Riyadh Air is part of PIF’s plan to utilize the capabilities of promising industries and help the Kingdom achieve its goal of economic diversification. The sovereign fund has more than $600 billion in assets and is the main driver of the Kingdom’s efforts to wean itself off oil.
The new airline is a “major breakthrough” and will give a major boost to the Kingdom’s tourism sector.