Saudi Arabia to establish air
freight company to challenge dominance of regional players
In a strategic move to position
Saudi Arabia as a global logistics hub, the Saudi Arabian Public Investment
Fund (PIF) is planning to launch a new air freight company as part of its
Vision 2030 initiative. This development is aimed at challenging the dominance
of neighboring logistics centers in Dubai and Doha.
The PIF, with assets exceeding $925
billion, is currently in talks with leading aircraft manufacturers Airbus and
Boeing to acquire a fleet of cargo planes. This acquisition will support the
creation of the new air cargo company, which is a crucial component of Saudi
Arabia’s broader strategy to enhance its air transport capabilities.
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This initiative aligns with the
Vision 2030 plan, spearheaded by Crown Prince Mohammed bin Salman, which seeks
to diversify the Saudi economy beyond oil and establish the country as a major
international logistics hub. The plan includes the development of both
passenger and freight air transport, attracting investment, and fostering
economic growth.
Saudi Arabia has already made
significant strides in the aviation sector, including the creation of Riyadh
Air, a new airline intended to compete with regional giants like Etihad,
Emirates, and Qatar Airways. Riyadh Air, led by CEO Tony Douglas, has already
placed substantial orders with Boeing for 787-9 Dreamliner aircraft.
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In addition to the air cargo
company, Saudi Arabia is also investing in other aviation-related initiatives,
such as establishing an aircraft leasing company, developing a helicopter
company, and creating one of the world’s largest airports in Riyadh. These
efforts are part of a broader strategy to enhance the country’s logistics
infrastructure, which includes upgrading airports, ports, and the road network.
The Saudi logistics sector is
projected to handle over 4.5 million tonnes of cargo by the end of the decade,
positioning the country as a key player in global trade routes that connect
Europe, Africa, and Asia.
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This focus on logistics is a
cornerstone of Vision 2030, which aims to reduce the country’s dependence on
oil by diversifying into sectors such as tourism, technology, logistics,
mining, and sports. The PIF's diversified investment portfolio already includes
significant stakes in technology, sports, and infrastructure, further
supporting the kingdom's ambitious transformation goals.
Source: https://www.atalayar.com/
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