Saudi Arabia has varied plans to launch a new national airline as it diversifies from the oil business!
Saudi Arabia’s Crown Prince Mohammed bin Salman announced plans on Tuesday to launch a Second National Airline! This is a part of a broader strategy to turn the kingdom into a global logistics hub as it seeks to diversify from oil.
The arab media has not been giving details on when and how the airline would be created.
New Flag Carrier!
The creation of another flag carrier would catapult Saudi Arabia into the 5th rank globally in terms of air transit traffic.
Prince Mohammad has been spearheading a push for Saudi Arabia. It is the biggest Arab economy and the largest country in the Gulf geographically, to boost non-oil revenues to about 45 billion riyals (USD 12.00 billion) by 2030.
Creation of a Global hub
The decision is adjourned over-
- Making the kingdom a global logistics hub!
- This will includes the development of ports
- Railways
- Road networks
- Would increase the transport
- Logistics sector’s contribution to gross domestic product to 10% from 6%.
“The comprehensive strategy aims to position Saudi Arabia as a global logistics hub connecting the three continents,” Prince Mohammed was quoted as saying in a report.
This ‘Aid’ is an ode to the Kingdom
“This will help other sectors like tourism, haj and umrah to achieve their national targets.”
The addition of another airline would increase the number of international destinations from Saudi Arabia to more than 250.
Not only this, but also double air cargo capacity to more than 4.5 million tonne!
Saudi Arabian Airlines
With the current flag bearer Saudi Arabian Airlines (Saudia), the kingdom has one of the smallest airline networks in the region relative to its size.
Saudia has struggled with losses for years and like global peers, has been hit hard by the coronavirus pandemic.
New Airport development at Riyadh
Local media reported earlier this year that the kingdom’s sovereign wealth fund, the Public Investment Fund, (PIF) has reduced significantly.
And, they have also planned to build a new airport in Riyadh as part of the new airline launch, without giving further details.
The fund is the main vehicle for boosting Saudi Arabian investments at home and abroad. It is as the young prince, known in the West as MbS, seeks to diversify the kingdom’s oil-heavy economy through his Vision 2030 strategy.
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