The Saudi Public Investment Fund (PIF) continues to diversify its investments in promising sectors, and it has become clear that the focus is on leveraging the Kingdom’s location. It lies at the crossroads of three continents and strives to become a global logistics hub.
This is being pursued by expanding its investment arms in transportation and logistics services. The latest development involves exploratory talks to arrange the acquisition of cargo planes from Boeing and Airbus to establish a new air cargo company, according to Bloomberg.
The economic arms of the sovereign fund in the field of transportation and logistics services are currently distributed across seven companies that are rapidly working to align with the Kingdom’s goals in this sector and achieve the National Transportation and Logistics Strategy. This strategy includes a package of major projects aimed at realizing economic and social targets.
Riyadh Air
The fund established “Riyadh Air” last year to be a new airline, with its main operational hub in the Saudi capital. The airline operates according to global standards. Additionally, it aims to lead the sector by connecting travelers to more than 100 global destinations by 2030. It offers exceptional levels of integrated services, combined with authentic Saudi hospitality.
Recently, “Riyadh Air” concluded numerous agreements and strategic partnerships with industry giants, in addition to purchasing a fleet of aircraft. This is in preparation for the start of its operational activities and a strong launch as scheduled in 2025.
Leasing Services
In 2022, PIF launched ‘Avilease‘ as a company specialized in integrated commercial aircraft leasing services. It is committed to providing customized solutions to partners through first-class leasing, trading, and asset management services.
Since its establishment, the company has witnessed remarkable growth in its fleet, which consists of advanced Airbus and Boeing aircraft. Additionally, it strategically adopts a disciplined investment practice by aligning strong financial gains with a sustainable positive impact at the national level.
Helicopters
The helicopter company was established to meet the growing demand for luxury tourism and air transport in the Kingdom. Moreover, this aligns with the fund’s strategy to maximize sustainable returns and develop new sectors.
This step supports the efforts to achieve “Vision 2030” and contributes to stimulating the tourism sector. It is also the first local company operating commercial helicopters in the Kingdom and has been operational since mid-2019.
Engineering and Maintenance
PIF owns 80% of the Saudi Company for Aircraft Maintenance and Preparation, founded in 2015. The company also aims to build expertise in aircraft maintenance and engineering and to become a global leader in aviation and defense. Its vision includes investing in people and advanced technologies.
The company also focuses on transferring the latest technologies and knowledge to develop a sustainable and advanced sector.
Land Transport
PIF also invests in the Saudi Public Transport Company “Saptco,” which was established in 1979. It is a land transport operator with a fleet of over 8,000 vehicles of various types and specifications, equipped with the latest technologies and vehicle tracking systems.
“Saptco” transports around 60 million passengers annually to various regions and countries, achieving significant accomplishments in both domestic and international transport sectors.
Marine Shipping
In maritime services, PIF owns 22.55% of the shares in the National Shipping Company of Saudi Arabia (Bahri), a global leader in logistics services and one of the major transportation companies.
Bahri boasts a vast fleet of modern ships built to the highest standards. Additionally, this enables it to serve over 150 ports worldwide, establish a global customer base, and build a strong reputation for quality, reliability, and safety.
Saudi Cruise
PIF also turned to the cruise market by launching “Saudi Cruise,” headquartered in Jeddah (on the west coast of the Kingdom) along the Red Sea. The goal is to develop the necessary infrastructure and services to expand this market.
Furthermore, the company is responsible for developing ports at major destinations and expanding the range of cruise services. It was launched to enhance the country’s efforts to become a tourist destination on the global cruise map, in line with “Vision 2030.”
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