Saudi Arabia has agreed a $37 billion deal with US firm Boeing which will see the company manufacture up to 121 Boeing 787 Dreamliner aircraft.
The deal will also see General Electric supply the engines for the planes.
The annoucement comes just days after Saudi Crown Prince Mohammed bin Salman announced the creation of a new national airline “Riyadh Air,” which will be wholly owned by the Public Investment Fund.
In a statement, White House Press Secretary Karine Jean-Pierre said: “Today’s announcement ensures that Boeing and General Electric will anchor Saudi Arabia’s new international airline together with support for a new international airport.
“This partnership is another milestone in eight decades of cooperation between Saudi Arabia and American industry. Our administration looks forward to working with Saudi Arabia and all partners in the Middle East to support a more prosperous, secure, and integrated region, which ultimately benefits the American people.”
Riyadh Air is set to make the Saudi capital a gateway to the world and a global destination for transportation, trade, and tourism, according to a statement from the Saudi Press Agency.
The airline will be chaired by PIF Governor Yasir Al-Rumayyan while Tony Douglas has been appointed its CEO, said a statement issued by the Kingdom’s sovereign wealth fund.
Operating from the Saudi capital as its hub, the airline is expected to add $20 billion to the Kingdom’s non-oil gross domestic product growth and create more than 200,000 direct and indirect jobs.