Saudi’s Riyadh Air gets $1.3b credit facility for launch

Riyadh Air, Saudi Arabia’s startup carrier, obtained a $1.3b credit facility from a group of Gulf banks as it looks to raise money ahead of its planned launch in the summer of 2025. The airline, owned by the kingdom’s sovereign wealth fund, signed an Islamic revolving credit facility amounting to 3b riyals, with an option for an additional 2b riyals with eight banks in the Gulf, according to a statement Thursday. The financing “will play a critical role in supporting Riyadh Air’s ambitious aircraft acquisition activities and addressing the airline’s short-term working capital needs as it prepares to launch operations,” according to the statement. On Wednesday, the airline placed an order for 60 narrowbody jets from Airbus, adding short-haul aircraft to its fleet as it looks to challenge regional incumbents including Emirates and Qatar Airways. The efforts are part of Crown Prince Mohammed Bin Salman’s initiative to make Saudi Arabia’s economy less dependent on oil. <br/>