In a strategic move reflecting the deep integration among major national entities to achieve the goals of Saudi Vision 2030, SAL Saudi Logistics announced the signing of a pivotal agreement with Riyadh Airlines, the new national carrier. Under this agreement, SAL will provide a comprehensive package of logistics services and lease operational facilities to support Riyadh Airlines' anticipated operations.
According to an official statement issued by SAL and published on the Saudi Stock Exchange (Tadawul), the signed agreement will provide Riyadh Airlines with dedicated operational facilities at King Khalid International Airport in Riyadh. These facilities include modern, fully equipped warehouses and storage areas to support the storage of aircraft engines and critical spare parts, a vital element in ensuring the smooth and efficient maintenance and operation of the new airline. The agreement extends for three years, commencing on November 26, 2025, with the possibility of renewal or termination based on agreed-upon terms, and is expected to have a positive financial impact on SAL's financial results during the contract period.
General context and importance of partnership
This agreement comes amidst the major transformations taking place in the transport and logistics sector in Saudi Arabia. With the launch of the National Transport and Logistics Strategy, the Kingdom aims to solidify its position as a global logistics hub connecting three continents. The establishment of Riyadh Airlines, owned by the Public Investment Fund, represents a cornerstone of this strategy, aiming to connect the capital, Riyadh, to more than 100 global destinations by 2030, which will contribute to attracting tourists and businesses and enhancing Riyadh's status as a global business center.
Expected impact at the local and international levels
Domestically, this partnership strengthens the logistics infrastructure at King Khalid International Airport and creates operational integration between key players in the Saudi aviation ecosystem. By leveraging SAL’s extensive experience in ground handling and logistics, Riyadh Aviation is guaranteed world-class logistical support from day one of its operations. Regionally and internationally, this collaboration sends a powerful message about the Kingdom’s readiness to launch and operate mega aviation projects to global standards, enhancing the competitiveness of the Saudi aviation sector and contributing to the Kingdom’s goals of diversifying its economy away from oil.
In conclusion, this agreement can be viewed not only as a commercial contract, but also as a strategic alliance that brings together two leading national companies to support the Kingdom’s economic ambitions and enable the aviation sector to become a key driver of sustainable development.
