- The reported move by Saudi Arabia’s Public Investment Fund (PIF), which manages $925 billion in assets, will be in line with its goal to funnel investment into tourism and transportation assets.
- It remains to be seen how the airline will be valued. Negotiations are said to be in the early stages and could be delayed or canceled altogether, Bloomberg reported.
- According to its website, Saudia Airlines was founded in 1945 and has a fleet of 144 aircraft, 93 made by Airbus and 51 made by Boeing, and flies to more than 100 destinations.
Boeing 787 Dreamliner in Saudi Arabia. Fly to Fiumicino Leonardo da Vinci Airport.Fiumicino (Italy), November 11, 2021
Massimo Insabato/Archivio Massimo Insabato/Mondadori Portfolio (Getty Images)
Saudi Arabia’s giant sovereign wealth fund in talks to buy Saudia’s national airline Saudia, Bloomberg report This was revealed over the weekend, citing a person familiar with the matter.
The reported move by the Public Investment Fund (PIF), which manages $925 billion in assets, is to invest heavily in tourism and transportation assets with the aim of turning Saudi Arabia into a tourism hub and diversifying the economy away from the tourism industry. This would be in line with the goal of oil.
According to initial reports, the acquisition will see PIF take ownership of the airline from the government and increase its efficiency and ability to make profits. It could then be privatized or merged with Riyadh Air, another airline owned by PIF, which entered service in March 2023 to compete with other more established Gulf carriers.
According to its website, Saudia Airlines was founded in 1945 and has a fleet of 144 aircraft, 93 made by Airbus and 51 made by Boeing, and flies to more than 100 destinations.
It remains to be seen how the airline will be valued. Negotiations are said to be in the early stages and could be delayed or canceled altogether, Bloomberg reported.
