Riyadh, Saudi Arabia – Saudi Arabia is considering transferring ownership of its national carrier, Saudia, to the sovereign wealth fund, the Public Investment Fund (PIF). Reports said that this transfer would encompass other assets under Saudia’s umbrella, such as its low-cost unit, Flyadeal.
Bloomberg initially reported the discussions regarding PIF’s potential acquisition of Saudia. Currently, PIF already holds ownership of Riyadh Air, the kingdom’s upcoming airline set to commence operations next year. The potential transfer aligns with the government’s ambitions to position Saudi Arabia as a prominent aviation hub, with Riyadh Air stationed in the capital and Saudia based in Jeddah.
According to sources, if the ownership transfer proceeds, Saudia is expected to maintain its distinct identity from Riyadh Air. Saudia’s focus would primarily revolve around facilitating Muslim pilgrims journeying to the holy sites in Saudi Arabia, while Riyadh Air would cater to non-religious traffic, including international transit passengers.
By integrating Saudia into PIF’s portfolio, the sovereign fund would gain direct oversight and control over the airline’s strategic direction.
