Skip to content Skip to Search
Skip navigation

Startup airline Riyadh Air secures $1.3bn credit facility

By Eva Levesque
Riyadh Air credit Riyadh Air
Riyadh Air revealed a new $1.3bn credit facility at the same time as it signed an order for 60 narrow-body Airbus A321neo aircraft
  • Agreement with eight banks
  • 60 Airbus A321neo ordered
  • Drive for booking platform

Riyadh Air, the Saudi airline that is due to start operations next year, signed a SAR5 billion ($1.3 billion) credit facility with a syndicate of banks on Wednesday, as it announced an order for 60 more aircraft.

The kingdom’s second flag carrier, owned by the PIF sovereign wealth fund, has closed an inaugural Islamic revolving credit facility worth SAR3 billion, which includes an option for an additional SAR2 billion.

The agreement was secured with eight financial institutions: Arab National Bank, Al Rajhi Bank, Gulf International Bank, Emirates NBD, Riyad Bank, Banque Saudi Fransi, Saudi Awwal Bank and Saudi National Bank.

Adam Boukadida, Riyadh Air’s CFO, said: “This financing not only strengthens our liquidity but also aligns with our strategy to maintain financial discipline as we approach our operational debut.”

The airline is ramping up its fleet of aircraft as it prepares to start operations in the summer of 2025. On Wednesday it signed an order for 60 narrow-body Airbus A321neo aircraft, during the eighth edition of the Future Investment Initiative (FII) conference in Riyadh.

Although the agreement’s value was not disclosed, the latest order is estimated at about $4 billion after typical discounts, according to Reuters. 

The deal brings to 132 the total number of jets ordered by the company so far.

Last year, the airline ordered 39 Boeing 787 Dreamliners, with options for 33 more.

The Saudi startup plans to start talks with Airbus and Boeing for an order of A350-1000 or 777X wide-body jets within two months, according to Reuters.

Riyadh Air will also need the credit facility to develop what it considers a one-stop digital platform for customers to plan and manage entire trips, competing with global travel giants.

The platform, putting Riyadh Air in direct competition with companies such as Booking.com and Expedia, will enable passengers to book not only flights but also accommodation, car rentals, AI-generated itineraries and tickets to attractions and concerts.

Tony Douglas, CEO of Riyadh Air, said the airline was aiming to be a “digitally-led business that enables travel, not to be confused with a regular or conventional airline”.

Latest articles

Lesha Bank said the investment in Edinburgh Airport 'marks the bank’s entry into the global infrastructure investment market'

Qatari bank buys stake in Edinburgh Airport

A sharia-compliant Qatari investment bank has acquired a minority stake in Edinburgh Airport through an infrastructure-focused investment fund. “This investment aligns with the bank’s strategic focus on resilient asset classes and marks the bank’s entry into the global infrastructure investment market,” Lesha Bank said in a press release. Edinburgh Airport, Scotland’s busiest and the sixth […]

Oman oil blocks

Oil output increase of 30% sought in Oman block offer

Oman is planning to offer 11 new oil concession blocks across the country this year, as it seeks to raise production by a third by the end of the decade. The ministry of energy and minerals, through the state-run company OQ Exploration and Production (OQEP) and the Canadian-based Scotiabank, have started marketing the potential blocks. […]

Unemployment in Oman was down to 4 percent at the end of last year

Oman to increase minimum wage to offset inflation

Oman is planning to increase the minimum wage by a fifth to counter higher costs of living, according to manpower minister Mahad Baawain.  Baawain said in a radio interview that the cabinet is considering a recommendation to raise the minimum wage to OR400 ($1,035) per month. “We have already made a decision to increase the […]

The Bharat Petroleum refinery in Mumbai. Bharat is one of two companies Aramco is looking at

Saudi Aramco considering investment in Indian refineries

Saudi Aramco is in talks to invest in two planned refineries in India as the world’s top oil exporter looks for a stable outlet for its crude in the world’s fastest-growing emerging market, several Indian sources with direct knowledge of the matter said. India, the world’s third-biggest oil consumer and importer, wants to become a […]

SMC intends to open three moree hospitals in Riyadh, which will become operational before 2029

Hospital operator SMC given approval for Saudi IPO

Specialized Medical Company (SMC), which operates two hospitals in Riyadh, has received approval from Saudi Arabia’s Capital Markets Authority to launch an initial public offering (IPO). The announcement allows SMC to issue 75,000 shares, representing 30 percent of its share capital. No further details about the listing were released. SMC’s CEO, Bassam Chahine, told AGBI […]

Many workers in Saudi Arabia are seeking a return to more structured corporate environments, even if it means sacrificing salary and benefits, one expert says

Saudi jobs growth ‘likely to halve’ as PIF reins in spending

Employment growth in Saudi Arabia will halve by 2026 as the kingdom reins in spending and focuses on delivering Vision 2030 projects, recruitment and real estate specialists are saying. Growth in recruitment for jobs in the Saudi economy, after hitting a high of nearly 10 percent in 2022, will slow to 3 percent by 2026, […]

Tabreed's possible bid comes after it was awarded the concession last year to provide district cooling to Dubai's Palm Jebel Ali

Tabreed explores buying Multiply’s cooling business

National Central Cooling Company, also known as Tabreed, is exploring a bid for Multiply Group’s district cooling business that could be worth at least $1 billion, two sources with knowledge of the matter told Reuters. Dubai-listed Tabreed is working with Citi on the potential offer for Multiply’s PAL Cooling Holding (PCH), said the two sources. […]

Traders on the floor of the Kuwaiti bourse. The government said the new law will push forward economic development in line with Vision 2035

Law change enables Kuwait to tap global debt markets

Kuwait can now borrow money from international markets after an eight-year hiatus. The government has issued a new law that sets the public debt ceiling at KD30 billion ($97.4 billion) and allows the issuance of financial instruments with maturities extending up to 50 years, the state-run Kuna news agency reported. The law will bolster financial stability and […]

The new investors will help accelerate Khazna’s global expansion plans, said CEO Hassan Alnaqbi

MGX buys stake in Dubai’s Khazna Data Centers

UAE technology investment company MGX and US private equity company Silver Lake have bought a minority stake in Dubai-based Khazna Data Centers. Following the deal, UAE telecommunications company e& – formerly known as Etisalat – has exited from its investment in Khazna but remains a major business partner, Khazna said in a statement. Transaction and financial […]

A view of Marrakesh. Morocco is investing heavily in infrastructure projects ahead of the World Cup

Morocco raises $2.2bn to fund World Cup projects

Morocco has reportedly generated €2 billion ($2.2 billion) in new loans to fund developments needed to co-host the 2030 Fifa World Cup. The euro-denominated bonds are the first to be issued in five years, Bloomberg reported. The four- and 10-year bond tranches were priced at 155 and 215 basis points, narrower than the previous estimate, […]

The twisted Cayan Tower in Dubai Marina is among Drake & Scull's projects.

Drake & Scull swings to $1bn profit post-restructuring

Drake & Scull International turned a profit last year following the completion of its restructuring plan. The contracting company, which trades on the Dubai Financial Market, swung to a net profit of AED4 billion ($1 billion) last year, compared to a net loss of AED367 million in 2023. Revenue marked a 20 percent rise to […]