Public Investment Fund in Talks to Acquire Saudia Airlines
The American agency “Bloomberg” mentioned, citing its sources, that the Public Investment Fund (PIF) is holding preliminary talks to acquire Saudia Airlines, reported Okaz.
The agency’s sources clarified that the fund will take ownership of the airline instead of the government, with the aim of improving its efficiency and profitability. Subsequently, it is possible to privatize the company or merge it with Riyadh Airlines, previously launched by the fund.
It was noted that currently, there is no specific method defined for evaluating Saudia Airlines by the Public Investment Fund.
Bloomberg indicated that no final decisions have been made regarding the acquisition, pointing out that the discussions are still in the early stages and the process may be delayed or abandoned.
Saudi Airline
Saudia, Saudi’s flag carrier, has stood out by achieving a significant milestone. In the year 2023, the airline proudly served over 30 million guests, marking an impressive 21% growth year-over-year. This accomplishment underscores the airline’s commitment to excellence. It also reflects the burgeoning demand for air travel post-pandemic.
Bin Laden Group
The Saudi Public Investment Fund (PIF) is planning to acquire a significant stake in the Bin Laden Group, Saudi Arabia’s largest construction company.
Bloomberg reported that PIF, in collaboration with Morgan Stanley, is exploring a potential deal to purchase shares in the Saudi Bin Laden Group, according to Al Arabiya Business.
With an impressive $700 billion in assets, the PIF is considering acquiring either a part or all of the 36% stake currently held by the Ministry of Finance. Moreover, this transformation is vital for Crown Prince Mohammed bin Salman’s ambitious economic reform plans.
Mega Projects and National Goals
The PIF plays an increasingly significant role in helping Saudi Arabia shift away from its oil-dependent economy. Furthermore, it oversees numerous large-scale projects like the futuristic $500 billion Neom city. Last year, PIF invested $1.3 billion in four local construction companies to bolster the domestic building industry.
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