Saudi Arabia Boeing 787 Dreamliner. The plane flies to Fiumicino Leonardo da Vinci Airport.Fiumicino (Italy), November 11, 2021
Massimo Insabato/Massimo Insabato Archive/Mondadori Portfolio via Getty Images
Saudi Arabia’s massive sovereign wealth fund is in talks to acquire Saudi Arabia’s national airline, according to Bloomberg report Over the weekend, people familiar with the matter were quoted as saying.
The move by the Public Investment Fund (PIF), which reportedly manages $925 billion in assets, would be in line with its goal of investing heavily in tourism and transport assets as it aims to transform Saudi Arabia into a tourism hub and make it Diversify the economy away from reliance on tourism and transport assets. Oil.
According to preliminary reports, the acquisition will see PIF take over ownership of the airline from the government to improve its efficiency and profitability. It could then be privatized or merged with Riyad Airways, an independent airline under PIF that was launched in March 2023 to compete with other more established Gulf carriers.
Founded in 1945, Saudi Arabian Airlines has a fleet of 144 aircraft, 93 Airbus and 51 Boeing, flying to more than 100 destinations, according to its website .
It’s unclear how the airline will be valued. Negotiations are said to be in the early stages and could be delayed or canceled entirely, according to Bloomberg.
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