Riyadh, new Dubai? Saudi Arabia launches new airline to compete with transit hubs

Saudi Crown Prince Mohammad bin Salman bin Abdulaziz announced the launch of a new domestic airline, Riyadh Air, on Sunday. The new domestic carrier will seek to capitalize on Saudi Arabia's geographic location between the three continents of Asia, Africa and Europe, allowing Riyadh to develop into a global transit hub for travel, international trade and tourism, replacing Dubai and Doha. In the area. By 2030, Riyadh Air hopes to have routes to over 100 destinations worldwide.

The airline will use Riyadh as a hub to usher in a new era for the travel and aviation industry worldwide, the airline's statement said: "Riyadh Air will be a world-class airline, adopting the best sustainability and safety standards in the world its fleet of advanced aircraft equipped with the latest technology

The Saudi economy is heavily dependent on oil and energy.According to a DW report, 80% of Saudi Arabia's export earnings come from oil, and the oil industry accounts for nearly 40% of GDP. The airline is expected to create more than 200,000 direct and indirect jobs and add $20 billion to non-oil GDP growth. The Public Investment Fund (PIF), a sovereign wealth fund, will cover all airlines.

The deal is part of Saudi Arabia's broader strategic ambitions to become an international aviation hub. In its "Vision 2030" document, Saudi Arabia aims to serve 330 million passengers and attract 100 million tourists.Saudi Arabia has signed a major contract with US aircraft manufacturer Boeing for the delivery of 121 787-9 Dreamliners. This will be Boeing's fifth commercial order by value.

The establishment of Riyadh Air aligns with PIF's mission to identify significant industry capabilities and accelerate economic diversification in Saudi Arabia. The airline will also facilitate the implementation of the national tourism strategy and support Saudi Arabia's ambitious aviation strategy by opening Saudi Arabia's cultural and natural attractions to foreign tourists and creating new jobs.

The Saudi government is pursuing ambitious aviation targets as part of Prince Mohammed bin Salman's comprehensive "Vision 2030" reform, which envisages doubling annual traffic to 330 million passengers by the end of the decade.In addition, up to five million tons of freight are to be moved annually.