Muhammad Ovais Yousuf, PIF’s Head of Aviation, at a panel discussion at the 2024 Future Aviation Forum. (Image: Facebook)
Riyadh Air’s official passenger launch is “imminent”, and the aviation sector is critical to Saudi Arabia’s economic growth as it is highly accretive and delivers a GDP multiplier effect of up to fourfold.
That’s according to the PIF’s Head of Aviation, Muhammad Ovais Yousuf, who spoke to Gulf Business in an exclusive interview just a day after Riyadh Air announced its inaugural test flight to London.
On Wednesday, Riyadh Air, owned by Saudi Arabia’s Public Investment Fund (PIF), said it will begin operating daily flights between Riyadh and London Heathrow on October 26 as part of its ”path to perfect” programme ahead of its full commercial launch.
READ MORE: Riyadh Air to launch inaugural flight to London on October 26
The flights will be operated using a Boeing 787-9 Dreamliner named Jameela, the airline’s reserve aircraft.
Tickets for the route will initially be available only to select passenger groups and Riyadh Air employees as the airline tests systems, crews, and service procedures. The London route forms part of an evaluation process before it begins commercial operations with its own fleet of Boeing aircraft.
Riyadh Air also plans to introduce additional flights to Dubai following the London service.
“Riyadh Air is one of our strategic mandates: not just in investment, but in its impact. We’ve been working on it for nearly four years. It started as a concept and has evolved through careful planning – covering talent, fleet, network, and infrastructure,” Ovais told Gulf Business.
“We’re now approaching public launch. Like any major project, it’s important to test first, much like a hotel’s soft opening to iron out issues. This initial phase allows select group of passengers, to experience the service and give feedback before we go fully public.”
The region’s newest airline aims to innovate and establish itself as a distinctive market player in several ways, Ovais said.
“There are two main differentiators. First, our market itself: Riyadh is home to around eight million people, giving us substantial captive demand from day one.
“Second, we’re starting from a clean slate: no legacy systems or outdated technologies. That allows us to build a next-generation airline from the ground up.”
He added that the airline is partnering with top aviation tech providers, such as FLYR, to “deliver a seamless, digital-first customer experience.”
“From booking to onboard service, guests will notice the difference. We’ve also selected three modern aircraft platforms that we’ll grow with, rather than having to switch between fleets over time.”
Riyadh Air is led by CEO Tony Douglas, who previously headed Etihad Airways before joining the Saudi carrier in March 2023.
With PIF as Riyadh Air’s shareholder, Ovais said the fund has “mastered the art of active portfolio management” and has sought to put the right people and processes in place.
“Under the current leadership, PIF has built robust governance structures and processes to manage large mandates like Riyadh Air. When we establish a new entity, we begin with governance: setting up the board, defining structure, and appointing the right management to deliver the shareholder vision.
“Our sector teams oversee setup and post-investment management through these structures. We work closely with management teams like Tony’s, learning from their industry expertise while sharing PIF’s own methodologies to accelerate progress.”
Importance of aviation to Saudi’s economy
The PIF has more than $925bn in assets under management, with over 220 portfolio companies across 13 sectors. It is estimated to have created more than 1.1 million direct and indirect jobs within Saudi Arabia and globally.
And it sees aviation as key to unlocking economic opportunities in the GCC’s biggest economy.
“Aviation is one of the most powerful drivers of GDP growth and job creation. It directly supports the other sectors within PIF – from tourism and industry to entertainment and logistics – by enabling global connectivity,” Ovais said.
“A strong aviation sector underpins economic acceleration. Robust airports, MRO facilities, and airline capacity are essential for the success of Saudi Arabia’s Vision 2030.”
With Saudi Arabia emerging as a major tourism destination and with it set to host the FIFA World Cup 2034 and World Expo 2030, Riyadh Air is expected to play a vital role in bringing visitors to the Kingdom.
READ MORE: 10 charts that show Saudi Arabia’s Vision 2030 in motion
Ever since Saudi Arabia began opening its tourism sector, the aviation space has seen strong growth.
“Even before these mega-projects materialise, growth has been significant. In 2019, Riyadh Airport handled around 26 million passengers; by 2024, that number reached 37 million: a 40 per cent increase. Imagine the potential once these projects scale and fully take off,” Ovais said.
PIF’s broader aviation focus
Riyadh Air is just one aspect of the PIF’s strategy to align with Saudi Arabia’s National Aviation Strategy. The fund has structured its aviation mandate around four pillars: commercial aviation, general aviation, aviation services, and infrastructure.
Under commercial aviation, there is Riyadh Air and other key entities.
For general aviation, the PIF through its portfolio companies manage both business jets and helicopters, which operates around 30 business jets and over 60 helicopters serving various sectors.
In aviation services, its flagship is AviLease, around $7.5bn AUM (assets under management) company launched in 2022, now among the world’s largest aircraft leasing players with around 200 aircraft operating across 45 airline clients around the globe.
The PIF is also investing heavily in MRO (maintenance, repair, and overhaul) facilities through its partnership with Saudia. Infrastructure remains an ongoing area of investment.
“Our aviation strategy mirrors the national strategy: building and investing in assets that advance the national agenda while delivering sustainable returns for PIF,” Ovais said in closing.
