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Saudi Arabia’s giant public investment fund is in talks to buy state-owned Saudia Airlines
Saudi Arabia’s Public Investment Fund may soon own Saudia’s national airline, Saudia, in a bid to make the country more tourist-friendly.
Saudi Arabia’s sovereign wealth fund is in talks to buy state-run airline Saudia, a deal that experts say could strengthen the airline’s management.
According to sources, discussions are underway between the Public Investment Fund (PIF) and government officials to reach an agreement. bloomberg Early this week, An attempt to increase the efficiency of the national airline.
The investment fund reportedly wants Saudia to become profitable and either privatize it or merge it with PIF’s Riyadh Airways.
Led by Crown Prince Mohammed bin Salman and boasting $925 billion in assets ranging from chemical companies to soccer clubs, the PIF is a key part of the de facto ruler’s Vision 2030 economic plan.
Tourism is a key part of this diversification effort, and PIF hopes to improve Saudia’s operations to attract more tourists to the Kingdom and increase revenue.
Saudi Arabia has long been closed to tourists, but its tourism sector has grown significantly in recent years, with developments such as AlUla, as well as sports, entertainment and other events all attracting tourists.
Saudi Arabia saw a 56% increase in visitor numbers in 2023 compared to 2019, the year before the coronavirus crisis broke out.
Founded in 1945, Saudia is one of the oldest national airlines in the Gulf region, but its profile has been overshadowed by neighboring carriers such as Qatar Airways, Emirates, Oman Air and Etihad Airways.
In 2023, Prince Mohammed announced the launch of a second national carrier, Riyadh Air, operated by PIF, as a competitor to Gulf carriers.
Riyadh Air also provides Saudi Arabia with a modern and efficient transport airline, which is essential for Saudi Arabia to become a regional tourism hub.
Experts say transferring Saudia to PIF would mean access to its extensive infrastructure, network and other assets, including low-cost carrier Flydeal.
Saudia is a central figure in the Hajj and Umrah pilgrimages, which bring millions of Muslims to the kingdom each year.
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