In a landmark move on Sunday, Saudi Crown
Prince Mohammed bin Salman launched a new national airline 'Riyadh Air',
completely owned by the Public Investment Fund (PIF), latest reports from the
Saudi Press Agency said.
A statement issued by the Kingdom's
sovereign wealth fund announced the appointment of Tony Douglas - former CEO of
Etihad Airways - as the airline's CEO and PIF Governor Yasir Al-Rumayyan as its
first chairperson.
Operating from the Saudi capital as its
hub, Riyadh Air aims to turn the city into a global destination for
transportation, trade, and tourism, and is expected to add $20 billion to the
country's non-oil GDP growth and create over 200,000 jobs.
The new airline, which plans to enable
Riyadh to become a gateway to the world, is the latest in "a huge package
of projects" that will "consolidate our country's position as an
international hub for aviation and a global logistics center," Saudi
Transport Minister Saleh Al-Jasser tweeted.
The launch is in line with the PIF's plan
to help the Kingdom with its ambitions related to economic diversification as
well as to utilise the capabilities of promising industries. The sovereign fund
is one of the key drivers of Saudi Arabia's efforts to wean itself off fossil
fuels and has over $600 billion in assets.
Officials made huge announcements last
November regarding plans for a new airport in the capital - spanning 57 sq km -
that is set to accommodate 120 million travellers per year by the end of this
decade and a whopping 185 million travellers by 2050.
The existing airport in Riyadh can
accommodate around 35 million travellers per year.
Saudi Tourism Minister Ahmed Al-Khateeb
took to Twitter to comment on the launch of the new airline, calling it a
"major breakthrough" that will offer a substantial boost to the
Kingdom's tourism industry. The launch of Riyadh Air backs "our goal to
receive 100 million tourists from all over the world by 2030."