Eastern European budget airline Wizz Air has signed a preliminary agreement with Saudi Arabia's Ministry of Investment to explore opportunities in the kingdom.
The deal will allow the airline and Saudi Arabia to work together on potential investment and operating models to boost the country's tourism industry and increase its connectivity.
"The [agreement] reflects a shared vision between the parties on the potential Wizz Air could bring to the kingdom to stimulate new demand, thereby making a significant contribution to Saudi Arabia's planned growth," Wizz Air said in a statement on the London Stock Exchange.
"The parties will work together to enable potential investment and operating models to benefit and add to the Saudi Arabian aviation ecosystem, boosting its tourism industry and significantly increasing its connectivity."
Saudi Arabia aims to draw investment worth 356 billion riyals — or slightly under $100bn — to its aviation sector by 2030 as part of its Vision 2030 economic transformation plan.
The kingdom also plans to set up a new national airline to complement its existing national operators, and to build a major international airport in Riyadh and eight regional airports.
Wizz already has a presence in the region in the form of Wizz Air Abu Dhabi, a joint venture with Abu Dhabi state holding company ADQ.
Wizz Air Abu Dhabi started operations in January 2021 and doubled its capacity to four aircraft this year as the UAE capital eased travel restrictions. The airline said it was recruiting 100 workers in anticipation of an expected rebound in passenger traffic.
Last month, Saudi Arabia's flynas approved plans to increase its aircraft on order to 250 as it seeks to become the biggest budget airline in the Middle East.
