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 world 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 by way of air transit site visitors, official state media reported, with out giving particulars on when and the way the airline could be created.
Prince Mohammad has been spearheading a push for Saudi Arabia, the most important Arab financial system and the most important 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 world logistics hub, which incorporates the event of ports, rail and highway networks, would enhance the transport and logistics sector’s contribution to gross home product to 10% from 6%, state information company SPA stated.
“The comprehensive strategy aims to position Saudi Arabia as a global logistics hub connecting the three continents,” Prince Mohammed was quoted as saying within the SPA report.
“This will help other sectors like tourism, haj and umrah to achieve their national targets.”
The addition of one other airline would enhance the variety of worldwide locations from Saudi Arabia to greater than 250 and double air cargo capability to greater than 4.5 million tonnes, the SPA report stated.
With present flag bearer Saudi Arabian Airlines (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 exhausting by the coronavirus pandemic.
Local media reported earlier this yr that the dominion’s sovereign wealth fund, the Public Investment 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.
The fund is the primary automobile for enhancing Saudi Arabian investments at dwelling and overseas because the younger prince, recognized within the West as MbS, seeks to diversify the dominion’s oil-heavy financial system by way of his Vision 2030 technique.