Saudi Arabia Plans Second Nationwide Airline As It Diversifies From Oil

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Saudi Arabia Plans Second National Airline As It Diversifies From Oil

Passengers discuss to airline staff at Riyadh Worldwide Airport.

CAIRO:

Saudi Arabia’s Crown Prince Mohammed bin Salman introduced plans on Tuesday to launch a second nationwide airline as a part of a broader technique to show the dominion into a worldwide logistics hub because it seeks to diversify from oil.

The creation of one other flag provider would catapult Saudi Arabia into the fifth rank globally when it comes to air transit visitors, official state media reported, with out giving particulars on when and the way the airline could be created.

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Prince Mohammad has been spearheading a push for Saudi Arabia, the largest Arab financial system and the biggest nation within the Gulf geographically, to spice up non-oil revenues to about 45 billion riyals ($12.00 billion) by 2030.

Making the dominion a worldwide logistics hub, which incorporates the event of ports, rail, and highway networks, would improve the transport and logistics sector’s contribution to gross home product to 10% from 6%, state information company SPA mentioned.

“The great technique goals to place Saudi Arabia as a worldwide logistics hub connecting the three continents,” Prince Mohammed was quoted as saying within the SPA report.

“This may assist different sectors like tourism, haj and umrah to attain their nationwide targets.”

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The addition of one other airline would improve the variety of worldwide locations from Saudi Arabia to greater than 250 and double air cargo capability to greater than four.5 million tonnes, the SPA report mentioned.

With present flag bearer Saudi Arabian Airways (Saudia), the dominion has one of many smallest airline networks within the area relative to its measurement. Saudia has struggled with losses for years and like world friends, has been hit onerous by the coronavirus pandemic.

Native media reported earlier this yr that the dominion’s sovereign wealth fund, the Public Funding Fund, (PIF), deliberate to construct a brand new airport in Riyadh as a part of the brand new airline launch, with out giving additional particulars.

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The fund is the principle automobile for enhancing Saudi Arabian investments at residence and overseas because the younger prince, recognized within the West as MbS, seeks to diversify the dominion’s oil-heavy financial system by means of his Imaginative and prescient 2030 technique.

(Apart from the headline, this story has not been edited by NDTV employees and is revealed from a syndicated feed.)

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