In today’s rapidly evolving global economy, transformation is not just about innovation—it’s about modernizing the legacy. While futuristic megaprojects like NEOM and Qiddiya garner global attention, the true strength of a nation lies in how it reengineers its foundational institutions. In the case of Saudi Arabia, this task has been taken up by none other than the Public Investment Fund (PIF)—the country’s sovereign wealth engine with a clear mandate: to diversify the economy, lead national development, and transform historic giants into globally competitive champions.
This transformation is nowhere more evident than in PIF’s strategic ownership and revitalization of legacy corporations such as Saudi Arabian Airlines (Saudia), Saudi Telecom Company (STC), and a range of infrastructure-rich enterprises. These entities once symbolized state-centric operations, but now, under PIF’s guidance, they represent the new Saudi vision—digitized, efficient, customer-focused, and globally relevant.
Why Legacy Corporations Matter in Vision 2030
Saudi Arabia’s Vision 2030 is not just about building new cities or launching giga-projects; it’s about revamping the operating system of the Kingdom. That includes transportation, communication, utilities, financial services, and hospitality—areas where legacy companies have long held strategic control.
By taking significant ownership stakes and board influence in these corporations, PIF is ensuring:
- Strategic alignment with national priorities.
- Operational modernization and global competitiveness.
- Private sector participation and capital market development.
- Value creation through innovation, digitization, and efficiency.
Let’s examine how PIF is doing this across three of the most critical sectors: aviation, telecommunications, and infrastructure.
Saudi Arabian Airlines (Saudia): Elevating the Kingdom’s Aviation Game
Saudia, the national flag carrier, was once a bureaucratic state entity. Today, under PIF’s umbrella, it is becoming a flagship of soft power, mobility, and tourism development.
Strategic Role in Vision 2030
- Aviation is crucial to positioning Saudi Arabia as a global logistics and tourism hub.
- Saudia supports inbound tourism, especially religious tourism through Hajj and Umrah.
- Acts as a backbone for new airlines like Riyadh Air, also backed by PIF.
Modernization Through PIF
- Fleet expansion and renewal with next-gen Boeing and Airbus aircraft.
- Digital transformation in ticketing, check-in, loyalty, and in-flight experience.
- New partnerships and codeshare agreements with international carriers.
- Increased focus on sustainability, including biofuel initiatives and fuel-efficient routing.
Through PIF’s direction, Saudia is now more than a transportation provider—it is a national asset repositioned for global connectivity.
STC (Saudi Telecom Company): From National Operator to Tech Powerhouse
STC, once a traditional telecom operator, is today a regional digital infrastructure leader. Thanks to PIF’s majority ownership, the company has pivoted into cloud services, cybersecurity, fintech, 5G, and IoT solutions—laying the digital foundation for Saudi Arabia’s next-gen economy.
Key Moves Under PIF’s Leadership
- Launch of stc pay, now a leading digital wallet and licensed bank in KSA.
- STC Solutions, an IT services and system integration arm for smart government and enterprise digitization.
- Investment in 5G infrastructure, providing coverage to urban and rural regions.
- Building data centers and cloud computing hubs to power AI, IoT, and smart city projects.
- Acquisitions and international expansion into the Gulf and beyond.
STC is no longer just a utility provider—it’s Saudi Arabia’s digital transformation enabler. And PIF is ensuring that its capabilities align with both economic competitiveness and national security.
Riyadh Air and the Aviation Ecosystem: A Parallel Lift
In addition to modernizing Saudia, PIF launched Riyadh Air—a new carrier set to become a global hub connector out of the Kingdom’s capital. This airline complements Saudia and brings competition, agility, and a new identity to Saudi aviation.
Highlights
- Riyadh Air will operate from King Khalid International Airport, turning it into a global transit hub.
- It aims to connect over 100 destinations by 2030.
- The airline will offer tech-integrated passenger experiences with sustainability baked in.
- It targets the premium travel market, especially for business, tourism, and events.
By having both Saudia and Riyadh Air under its strategic oversight, PIF is building a dual-flag aviation strategy that covers mass transit and premium connectivity—ensuring Saudi Arabia becomes a key node in the global aviation map.
Infrastructure Giants Under PIF’s Modernization Playbook
PIF has quietly acquired or consolidated stakes in some of the Kingdom’s most critical infrastructure and logistics companies, including:
Saudi Arabian Railways (SAR)
- Developing integrated rail corridors such as the Land Bridge, connecting east and west coasts.
- Supporting urban mobility and freight logistics.
- Enables intermodal transport solutions aligned with industrial growth zones.
Saudi Ports Authority (Mawani)
- Revamping port operations and logistics hubs.
- Increasing container capacity, smart port automation, and international throughput.
- Strategic for global trade and non-oil export expansion.
Saudi Electricity Company (SEC)
- Working with ACWA Power and others to decarbonize the grid.
- Integrating smart metering, renewable sources, and grid storage.
- Vital to powering cities, industries, and digital services.
PIF’s involvement ensures that these infrastructure operators are capitalized, governed, and digitized—ready for the demands of a 21st-century economy.
Governance Transformation: From Public Sector to Performance Culture
One of PIF’s least visible but most powerful tools is modern corporate governance. Legacy companies that once functioned under ministry-style operations now operate with clear KPIs, board accountability, executive incentives, and transparent financials.
Key Governance Reforms Driven by PIF
- Appointment of global talent and technocrats to boards.
- Implementation of ESG standards across all major subsidiaries.
- Transition from subsidies to financial sustainability and market competitiveness.
- Creation of investment arms and spin-offs to explore new business models.
These reforms instill a culture of performance, encouraging these giants to think beyond protectionist mandates and toward market-based value creation.
A Catalyst for Private Sector Growth
Reviving legacy giants isn’t just about public sector dominance—it’s about unlocking private sector participation. PIF has overseen:
- Partial privatizations of companies like STC and Saudia.
- Listing of subsidiaries on the Saudi Stock Exchange (Tadawul).
- Joint ventures with global companies to localize industries.
- Opening of strategic services to SMEs and startups under new procurement frameworks.
By making these national champions more efficient and transparent, PIF crowds in private investment, creating a multiplier effect across the Saudi economy.
Pre-Conclusion: Balancing Heritage and Progress
The modernization of legacy giants is not a clean slate exercise—it’s a delicate balance of preserving identity while upgrading performance.
Saudia still carries pilgrims and the national flag—but now with world-class service.
STC still provides telecom—but now also fintech, cloud, and cybersecurity.
Saudi Railways still connects cities—but now fuels industrial and logistics corridors.
These institutions represent continuity in form but transformation in function.
What’s truly remarkable is how PIF is navigating this transformation not through disruption, but through discipline, capital, and vision. It’s turning conservative structures into modern, dynamic contributors to a diversified national economy.
Conclusion
The success of any vision lies in its foundation—and in Saudi Arabia, that foundation is being rebuilt, brick by brick, by the Public Investment Fund’s stewardship of legacy giants. From aviation and telecom to logistics and utilities, PIF is proving that the past need not be a barrier—it can be a launchpad.
As the Kingdom diversifies and digitizes, these reimagined legacy corporations will be the invisible engines behind every future milestone. They’ll move people and goods, transmit data and power, and facilitate the seamless operation of futuristic cities, global events, and green industries.
In the grand theater of Vision 2030, where NEOM may be the star, these legacy giants—revived and retooled under PIF—are the infrastructure, the backstage, and the orchestration of it all.
They are no longer remnants of the past. They are instruments of the future.
