Saudi Arabia Plans Second National Airline As It Diversifies From Oil.

Saudi Arabia Plans Second National Airline As It Diversifies From Oil

Passengers talk to airline employees at Riyadh International Airport.

CAIRO:

Saudi Arabia's Crown Prince Mohammed bin Salman announced plans on Tuesday to launch a second national airline as part of a broader strategy to turn the kingdom into a global logistics hub as it seeks to diversify from oil.

The creation of another flag carrier would catapult Saudi Arabia into the 5th rank globally in terms of air transit traffic, official state media reported, without giving details on when and how the airline would be created.

Prince Mohammad has been spearheading a push for Saudi Arabia, the biggest Arab economy and the largest country in the Gulf geographically, to boost non-oil revenues to about 45 billion riyals ($12.00 billion) by 2030.

Making the kingdom a global logistics hub, which includes the development of ports, rail, and road networks, would increase the transport and logistics sector's contribution to gross domestic product to 10% from 6%, state news agency SPA said.

"The comprehensive strategy aims to position Saudi Arabia as a global logistics hub connecting the three continents," Prince Mohammed was quoted as saying in the SPA report.

"This will help other sectors like tourism, haj and umrah to achieve their national targets."

The addition of another airline would increase the number of international destinations from Saudi Arabia to more than 250 and double air cargo capacity to more than 4.5 million tonnes, the SPA report said.

With current flag bearer Saudi Arabian Airlines (Saudia), the kingdom has one of the smallest airline networks in the region relative to its size. Saudia has struggled with losses for years and like global peers, has been hit hard by the coronavirus pandemic.

Local media reported earlier this year that the kingdom's sovereign wealth fund, the Public Investment Fund, (PIF), planned to build a new airport in Riyadh as part of the new airline launch, without giving further details.

The fund is the main vehicle for boosting Saudi Arabian investments at home and abroad as the young prince, known in the West as MbS, seeks to diversify the kingdom's oil-heavy economy through his Vision 2030 strategy.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

NDTV News

NDTV.com provides latest news from India and the world. Get today’s news headlines from Business, Technology, Bollywood, Cricket, videos, photos, live news coverage and exclusive breaking news from India.

https://www.ndtv.com/

Related news
China's push for 'domination' is fueling meeting with US: Jack Keane.

China's push for 'domination' is fueling meeting with US: Jack Keane.

Fox News senior strategic analyst Gen. Jack Keane (Ret.) discusses the tense meeting between U.S. and Chinese officials. Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Channel Live: FOX News Channel (FNC) is a 24-hour all-encompa...

Cities Issue Air Quality Warnings As Wildfires Rage.

Cities Issue Air Quality Warnings As Wildfires Rage.

Wildfires are burning throughout the west coast resulting in many cities issuing air quality warnings, and new research shows a potential link between wildfire smoke and an increased risk of Covid-19.  » Subscribe to NBC News: » Watch more NBC vid...

Rockslide Destroys Bridge in Northern India

Rockslide Destroys Bridge in Northern India

Large boulders were seen hurtling down a mountain and smashing through a bridge in northern India, Sunday, July 25. The avalanche killed nine people and seriously injured three more after their vehicle was hit by falling rocks. The rockslide was o...

Trump doubles down on false election claims in Arizona.

Trump doubles down on false election claims in Arizona.

Former President Trump doubled down on his baseless claims surrounding the 2020 election during a rally in Arizona over the weekend. His remarks came on the heels of an Associated Press investigation that identified fewer than 200 cases of potenti...

Live: Biden holds bilateral meeting with Iraqi Prime Minister.

Live: Biden holds bilateral meeting with Iraqi Prime Minister.

President Biden participates in a bilateral meeting with His Excellency Mustafa Al-Kadhimi, Prime Minister of the Republic of Iraq #FoxNews Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Channel Live: FOX News Channel (FNC) is a ...

Can education better prepare us for climate change?.

Can education better prepare us for climate change?.

On the Daily Climate Show, scientists are finalising a landmark report on the latest climate data and do we need better education on climate change impacts? Plus, find out how one city in Canada is using parkland and trees to adapt to extreme weat...