- Saudi Arabia’s Public Investment Fund is negotiating with Boeing and Airbus and lessors to purchase Boeing 777 and Airbus A350 freighters.
- Saudi Arabia aims to capitalize on its position at the global crossroads linking Europe, Asia, and Africa amid rising demand for air freight.
- Air freight shipments jump 14% in June 2024 compared to 2023, marking the seventh consecutive month of 10% or more growth.
Bloomberg reported that Saudi Arabia’s Public Investment Fund (PIF) is exploring the purchase of Boeing and Airbus aircraft to launch a new air cargo company, aiming to turn the Kingdom into a global logistics hub, according to Al Rai newspaper.
The agency quoted sources familiar with the matter, who requested anonymity due to the private nature of the talks, stating that the Public Investment Fund is negotiating with both aircraft manufacturers and lessors to purchase Boeing 777 and Airbus A350 freighters. These aircraft will serve both the national airline Saudi Arabia and the emerging Riyadh Aviation.
Saudi Arabia aims to capitalize on its position at the global crossroads linking Europe, Asia, and Africa amid rising demand for air freight. Air freight shipments increased by 14 percent in June compared to the previous year, marking the seventh consecutive month of 10 percent or more growth, according to the International Air Transport Association (IATA). Shipments are expected to surpass the levels reached in 2021, which was a record year.
The move is part of the kingdom’s efforts to diversify its economy beyond oil reliance, focusing on tourism, aviation, and logistics.
