Saudi Arabia’s Public Investment Fund (PIF) is reportedly in discussions to acquire Boeing and Airbus freighters as part of a plan to launch a new cargo airline, according to Bloomberg. This initiative aligns with the Kingdom’s strategy to strengthen its logistics sector, a key area as it positions itself as a regional leader.
The proposed airline would complement the services of Saudia, the Kingdom’s national carrier, and the newly launched Riyadh Air. PIF is said to be in early-stage negotiations with Boeing Co., Airbus SE, and aircraft leasing firms for the potential acquisition of Boeing 777 and Airbus A350 freighters. However, no final decisions have been made, and the plans could still face delays or be abandoned.
This move is part of Saudi Arabia’s broader goal to diversify its economy beyond oil, focusing on sectors such as tourism, aviation, and logistics. The Kingdom aims to leverage its strategic location at the crossroads of Europe, Asia, and Africa, particularly amid rising global demand for air cargo. According to the International Air Transport Association, air cargo shipments increased by 14% in June compared to the previous year, marking the seventh consecutive month of double-digit growth.
The Kingdom’s ambitions include establishing a new aircraft leasing company, a helicopter service, and investments in Saudia’s engineering unit. Additionally, there are plans to develop one of the world’s largest airports in Riyadh. Riyadh Air, launched by PIF, is working to expand Saudi Arabia’s global connections and has already formed partnerships with Singapore Airlines and Air China to enhance its network.
In a related move last year, Saudia and Riyadh Air placed a joint order for 78 Boeing 787 Dreamliners, a deal valued at nearly $37 billion. Bloomberg has also reported that PIF could take ownership of Saudia as early as 2025.