Saudi Arabia's sovereign wealth fund is reportedly in preliminary discussions with Boeing and Airbus as it aims to transform the Kingdom into a key logistics centre by establishing a new cargo airline similar to those in Doha and Dubai.

Bloomberg, citing people familiar with the matter, said the cargo carrier would serve Saudia's flag carrier and planned second flag carrier, Riyadh Air. It added that Saudi Arabia's Public Investment Fund (PIF) is in talks with aircraft manufacturers to acquire Boeing 777 and Airbus A350 freighters.

Riyadh Air, owned by the country’s PIF, was first revealed in March 2023 alongside a provisional order for up to 72 Boeing 787 aeroplanes.

However, since the talks are at a preliminary stage, Bloomberg noted that discussions could fall through.

Saudi Arabia is aiming to establish itself as a global logistics hub, including in airfreight, following the lead of Abu Dhabi, Dubai, Qatar, and other Gulf states. This initiative could also help the Kingdom diversify its economy, reducing its dependency on oil extraction.

The establishment of an all-cargo carrier would be a key part of broader efforts to develop the country's aviation sector.