RIYADH: Saudi Crown Prince Mohammed bin Salman on Sunday announced the creation of a new national airline 鈥淩iyadh Air,鈥� wholly owned by the Public Investment Fund, the Saudi Press Agency reported.

The airline seeks to enable Riyadh to become a gateway to the world and a global destination for transportation, trade, and tourism.

The airline will be chaired by PIF Gov. Yasir Al-Rumayyan while Tony Douglas has been appointed its CEO, said a statement issued by the Kingdom鈥檚 sovereign wealth fund.

Operating from the Saudi capital as its hub, the airline is expected to add $20 billion to the Kingdom鈥檚 non-oil gross domestic product growth and create more than 200,000 direct and indirect jobs.

鈥淭he new national airline represents PIF鈥檚 latest investment in the sector, along with the recently announced King Salman International Airport masterplan,鈥� the statement added.

鈥淩iyadh Air will also act as a catalyst for the Saudi National Transport and Logistics Strategy and the National Tourism Strategy by boosting air transportation alternatives, increasing cargo capacity, and, as a result, increasing international passenger traffic,鈥� it said.

The new airline is the latest in 鈥渁 huge package of projects鈥� that will 鈥渃onsolidate our country鈥檚 position as an international hub for aviation and a global logistics center,鈥� Saudi Transport Minister Saleh Al-Jasser said on Twitter.

The launch of Riyadh Air is part of PIF鈥檚 plan to utilize the capabilities of promising industries and help the Kingdom achieve its goal of  economic diversification. The sovereign fund has more than $600 billion in assets and is the main driver of the Kingdom鈥檚 efforts to wean itself off oil.

Last November officials announced plans for a new airport in the capital Riyadh 鈥� spanning 57 sq. km (22 sq. m) 鈥� that is set to accommodate 120 million travelers per year by 2030 and 185 million travelers by 2050.

The capacity of the existing Riyadh airport is around 35 million travelers.

Commenting on the launch of the new airline, Saudi Tourism Minister Ahmed Al-Khateeb wrote on Twitter that the new airline is a 鈥渕ajor breakthrough鈥� and will give a major boost to the Kingdom鈥檚 tourism sector. He said the launch of the airline support 鈥渙ur goal of receive 100 million tourists from all over the world by 2030.鈥�