Bloomberg started the rumors off in an article it published on 20AUG24. According to this, the Saudi Public Invest Fund (PIF), has approached both Boeing and Airbus to discuss their B777F and A350F aircraft versions. The aim: to bolster the Kingdom’s logistics services so as to rival neighboring Dubai and Doha air cargo hubs – an ambitious project, particularly given the plans for the world’s mega-hub for Dubai announced earlier this year – and Doha, too, is again expanding. Not to mention the region’s two world-leading cargo airlines: Qatar Airways Cargo (28 freighters) and Emirates (14 freighters growing to 17 by end 2025).
Nevertheless, according to anonymous insiders speaking to Bloomberg, “the cargo-hauling operation would serve flag-carrier Saudia and startup Riyadh Air [and] talks are at an early stage. No final decisions have been made and the fund may ultimately decide to delay or scrap the plans.” CFG approached Saudia’s communication agency for comment, but was told that Saudia Cargo was not involved in the PIF/Bloomberg news article. Interesting, since Bloomberg News also reported that Saudia’s ownership could be transferred to the PIF as soon as 2025. Riyadh Air [also a PIF initiative] recently started a huge recruitment campaign, but features no cargo openings on its website, so no confirmation there as to whether this will go ahead or not. Bloomberg reported that Boeing and Airbus both stated that they would not comment on talks with potential customers.
The Arabian Post, this week, however, reported on the topic with greater conviction: “Saudi Arabia’s Public Investment Fund (PIF) is advancing plans to launch a new cargo airline as part of its strategic expansion in the logistics sector. This initiative is aimed at bolstering the country’s position as a major global logistics hub, enhancing its transport infrastructure and boosting economic diversification efforts. […] The new airline is expected to serve as a critical link in the country’s logistics and transport infrastructure, potentially transforming Saudi Arabia into a central logistics node connecting East and West. […] The logistics sector’s expansion is expected to create new job opportunities and stimulate further economic activity within the country. As the new cargo airline begins to take shape, stakeholders are eager to see how it will integrate with existing infrastructure and what impact it will have on regional logistics dynamics.”
Both publications point to Saudi Arabia’s Vision 2030 and its aim to diversify its economy beyond traditional oil revenues. Regarding air cargo, which has seen consistent double-figure growth over the past half-year, Saudi Arabia is clearly benefiting from its strategic location at a global crossroads connecting Europe, Asia and Africa.
