Saudi Public Investment Fund Considers Buying National Saudia Airline

Saudi Arabia’s Public Investment Fund, which manages $925 billion in assets, is reportedly in talks to acquire the Kingdom’s national airline, Saudia.

Though talks are still in early stages, the acquisition would track with PIF plans to increase investment in tourism and transport assets, diversifying the economy yet further away from oil whilst capitalising on the privatisation to improve the efficiency of the airline, improving its ability to make a profit.

Sources close to the matter have said that, instead of simply being privatised as a standalone company, Saudia could be merged with Riyadh Air, launched in March 2023 by the PIF to compete with established Gulf airlines.

Operating since 1945, Saudia currently manages a fleet of 144 aircraft, flying to more than 100 destinations domestically and internationally. This fleet, along with many other factors, would be taken into account when valuing the airline, though it is still unclear how the full valuation would be calculated, similar to the valuation of Aramco when the oil giant went public in 2020.