With the company setup in Saudi Arabia by the PIF, the airline Riyadh Air, the government continues to apply its Vision 2030. Thus, this initiative seeks to turn the capital of the kingdom into a tourist arrival center while offering thousands of jobs. In this article, you will learn about the data from the recent announcement by the authorities. Let us see:
1. Riyadh Air, the new flag carrier of Saudi Arabia
Saudi Arabia presented the new airline Riyadh Air, which will have its operational center in the Saudi capital. In addition, the central government plans to link Riyadh with more than 100 destinations worldwide. Also, with the company setup in Saudi Arabia like this, the country aims to develop business potential.
Likewise, Riyadh Air was inaugurated on March 12 by Crown Prince Mohammad bin Salman bin Abdulaziz. Similarly, as an operational hub in Riyadh, it is targeted to add USD 20 billion to the GDP. In the same way, the company will create 200,000 jobs, both direct and indirect.
1.1 Management of Riyadh Air
The Chairman of Riyadh Air is Yasir Al Rumayyan, who is the Governor of the PIF. In addition, the operating director is Tony Douglas, who has more than 40 years of experience in transportation, aviation, and logistics companies. In the same way, national and international experts will be involved in the senior management of the airline.
2. Affirming tourism in the country
Establishing a company in Saudi Arabia like this will allow tourists to experience natural and cultural attractions. Furthermore, by taking advantage of its excellent location, Saudi Arabia can become a global gateway. Similarly, a site for transportation, trade, and tourism in union with Saudi Vision 2030.
The airline released a statement stating that Riyadh Air will serve as a tactical boost for national transportation, logistics, and tourism strategy. This is due to the increase in air transportation options, as well as the increase in cargo capacity. In the same way, international passenger traffic will increase.
3. One of the PIF diversification strategies
The Riyadh Air airline is one of the strategies implemented by the PIF to boost the growth and economic diversification of the nation. With this, they aspire to take advantage of the opportunities of productive sectors with potential for growth in Saudi Arabia.
In addition, it allows the country to create a more financially stable environment by supporting global business competitions in conjunction with Vision 2030. Likewise, the PIF is creating a list of varied options for the entry of new long-term investments in the 13 strategic sectors National and international.
3.1 The strategy established in the PIF 2021-2025 program
The central axis of the company setup in Saudi Arabia is to activate promising business sectors and increase local commerce with the private sector. Therefore, it is well integrated with the goals of the Vision 2030 plan. It also has the goal of injecting some SAR 150,000 million annually into the national economy.
Likewise, since 2017, the PIF has incorporated and established 71 new companies in the nation. Thanks to this, they have created more than 500,000 jobs directly or indirectly since 2021.
4. Riyadh Air plans new orders before the 2025 takeoff
The authorities announced a new agreement to purchase 39 Boeing Dreamliner, with a capacity for an additional 33 aircraft. However, this is just part of a larger investment that could encompass the purchase of 121 aircraft. This deal involves another of the kingdom-based carriers located in Jeddah.
This agreement could reach a figure of USD 37 billion, one of the most valuable agreements for Boeing. In addition, the planes are in the United States and will be delivered on a schedule that allows preparation to begin service in early 2025.
On the other hand, Tony Douglas the CEO, and former head of Etihad Airways, indicated that they will receive the planes systematically to enter service in 2025. Thus, the head of the new airline hopes that the fleet will allow him to board more than 100 destinations worldwide. He also added that they will continue to work with the same manufacturers and the same campaigns that have been successful before.
4.1 The Riyadh Brand
One of the main goals is to turn the capital into a travel hub that can compete with Dubai and Doha. Furthermore, in November 2022 Saudi officials announced new plans for a giant airport in Riyadh, expecting the population to double.
However, analysts have analyzed the usefulness of this aspiration, concluding that it is an already very saturated market. However, the strategy will depend in part on taking advantage of the internal market, which has a population of 35 million. In this regard, officials see great advantages for carriers in the region over competitors from Emirates and Qatar Airways.
Also, with the company setup in Saudi Arabia of Riyadh Air, the authorities will provide international, regional, and internal transportation services. Furthermore, the country intends to establish the Riyadh brand and for the center to be in the capital city.
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