According to a report by Bloomberg, Saudi Arabia’s sovereign wealth fund is in preliminary discussions to secure Boeing Co. and Airbus SE freighters for a new cargo airline. The move is said to be a part of the nation’s ambition to position itself as a logistics hub on par with Dubai and Doha.
The cargo operation is expected to support both the flag carrier Saudia and the new startup Riyadh Air, according to sources familiar with the matter, who requested anonymity due to the private nature of the talks.
The Public Investment Fund (PIF) is reportedly negotiating with aircraft manufacturers and leasing companies to procure Boeing 777 and Airbus A350 freighters, Bloomberg’s sources revealed.
These discussions are reportedly still in the early stages, with no definitive decisions made yet, and the PIF could ultimately decide to postpone or cancel the plans.
Bloomberg reports that representatives from the PIF and Riyadh Air did not provide comments, while Saudia did not respond to inquiries. Moreover, Boeing and Airbus stated they do not comment on negotiations with airlines or potential customers.
Saudi Arabia, like other Gulf competitors, seeks to capitalise on its strategic location at a key global intersection between Europe, Asia, and Africa amid growing demand for air freight sparked by the Red Sea crisis and the boom in parcels purchased via Chinese platforms like Temu and Shein.
This initiative also aligns with Saudi Arabia’s broader strategy to diversify its economy beyond oil revenues by focusing on sectors such as tourism, aviation, and logistics.
