Saudi Arabia Thinks Its New Airline Can Dethrone the Middle East’s Legacy Carriers

Saudia Arabia's government made news earlier this month when it hinted at plans to build a global airline, based in the kingdom, to take on regional powerhouses Emirates, Qatar Airways, and Etihad. But will Saudi Arabia be able to dethrone Dubai and Doha as the world's airline crossroads? The plan could be harder to execute than the country's rulers might think, no matter how much money they throw at the problem, and it is likely fueled by regional tensions more than any economic imperative.

Details are scant, but Airline Weekly understands that Crown Prince Mohammed bin Salman, Saudi Arabia's de facto ruler, intends for the new airline to be part of the $130 billion in investment he's spearheading to transform the kingdom into a global transportation and logistics hub. The investment is part of his multi-trillion dollar blueprint to wean Saudi Arabia off of oil and diversify its economy.

But this could be harder than Prince Mohammed thinks. Saudi Arabia historically struggled to win over both domestic and international tourists due to societal limitations, including a strict no-drinking policy and restrictions for women. Riyadh hadn't welcomed international tourists for so long that its infrastructure remained underdeveloped. Even locals complained of a lack of venues.

Until last year, authorities forbid local restaurants and malls from playing music. Although officials eased some of these restrictions, much of that doesn't apply to residents. Because the local culture doesn't allow for much intermingling