Saudi’s Public Investment Fund to set up airline company – reports

Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) is planning to establish a major airline company in partnership with other investment bodies.

The new airline company will compete with Saudi Airlines and other large carriers in the region, online newspaper Maaal reported, citing unidentified people.

The company will run international and domestic flights. The project has gone a long way in its study, the report added.

State-owned Saudi Arabian Airlines is the biggest carrier in the kingdom. Others include low-cost carrier Flyadeal, owned by Saudi Arabian Airlines, and Flynas, owned by Prince Alwaleed Bin Talal Al Saud’s Kingdom Holding.

PIF recently launched its five-year strategy, including its Vision Realisation Programme (VRP) 2021-2025.

Among the most important initiatives, PIF will invest a minimum of $40bn annually in domestic projects and investments, contribute $320bn to non-oil GDP cumulatively through its portfolio companies, grow assets under management to over $1.07 trillion, and create 1.8 million direct and indirect jobs by the end of 2025.

Read: Saudi’s Public Investment Fund launches 5-year strategy; assets treble to $400bn

In December last year, PIF overhauled some of its top management in preparation of a greater role in the local economy.

Read more: Saudi’s $360bn sovereign wealth fund PIF rejigs top leadership

With inputs from Bloomberg