Saudi Arabia plans new national airline in move to diversify from oil Blog
Saudi planning for second national airline.
At the direction of Crown Prince Mohammed Bin Salman, Saudi Arabia is considering building a new airport in Riyadh – a facility that would serve as a base for a new airline.
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The kingdom’s sovereign wealth fund will cover the cost of a second national airline as part of a broader strategy to diversify from oil.
State media claims that another Saudi flag carrier would catapult the country into the fifth rank globally in terms of air transit traffic.
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The addition of an airline could increase the number of international destinations from Saudi Arabia to more than 250 and double air cargo capacity to more than 4.5 million tons.
Saudi Arabia is hoping to welcome 100 million visitors per year by 2030.
“The comprehensive strategy aims to position Saudi Arabia as a global logistics hub connecting the three continents,” the crown prince was quoted as saying in the SPA report.
“This will help other sectors like tourism, Hajj and Umrah to achieve their national targets.”
As part of his Vision 2030 strategy, Crown Prince Mohammed Bin Salman has been spearheading a push to make the kingdom a global logistics hub, which includes the development of ports, rail and road networks.
State officials estimate this would increase the transport and logistics sector’s contribution to gross domestic product from 6% to 10%.
