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JEDDAH: ����ֱ��’s Public Investment Fund-backed AviLease has partnered with Hassana Investment Co. to establish a new aircraft leasing joint venture, underscoring growing public-private collaboration in advancing the Kingdom’s aviation sector. 

Hassana, the investment manager of the General Organization for Social Insurance, will hold the majority stake in the venture. AviLease, which manages an aircraft portfolio worth over $7 billion, will act as the platform’s aircraft service provider, according to a press release. 

The partnership comes as AviLease expands, having placed Boeing and Airbus orders in June, secured a $1.5 billion financing facility in April, and received investment-grade ratings.

The company is targeting a fleet of about 200 aircraft in ����ֱ��’s growing aviation market. 

The move aims to broaden access to aviation financing for local and international investors while supporting the Kingdom’s National Aviation Strategy. This supports the Kingdom’s updated target of drawing 150 million visitors a year by 2030, up from the original Vision 2030 goal of 100 million.

AviLease CEO Edward O’Byrne said the collaboration with Hassana enhances the company’s position as a PIF-backed lessor. 

“The proposed joint venture is a foundational step in building a scalable platform that supports the growth of ����ֱ��’s aviation ecosystem. We look forward to further developing this partnership through future transactions and expanding our footprint in the global aircraft leasing market,” he added. 

As its first transaction, the JV will acquire a portfolio of 10 aircraft from AviLease, currently leased to Saudi carriers. The fleet consists of new-generation, fuel-efficient models, aligning with ����ֱ��’s push to boost efficiency and sustainability in its expanding aviation infrastructure. 

Hani Al-Jehani, acting CEO and chief investment officer, Hassana, said: “This strategic partnership underscores our commitment to investing in resilient assets that generate sustainable, long-term cash flows supported by strong fundamentals.”  

He added: “Through our collaboration with AviLease, we aim to strengthen our exposure to the aviation leasing sector while advancing the Kingdom’s broader aviation aspirations.”  

Al-Jehani said the initiative is fully aligned with the mandate to pursue attractive investment opportunities that advance the fund’s portfolio objectives. 

Fahad Al-Saif, chairman of AviLease, called the partnership “a significant step,” adding that it represents the private sector’s first entry into the fast-growing aviation leasing space and reflects deeper collaboration between PIF companies and private investors. 

He further emphasized that such partnerships provide a robust financial platform, capable of attracting high-quality local and international investments while reinforcing ����ֱ��’s growing financial market presence regionally and globally. 

Hassana manages more than SR1.2 trillion ($300 billion) in assets, deploying its scale and expertise across sectors and geographies to generate long-term value.  

Earlier this year, the firm signed a memorandum of understanding with Saudi Real Estate Refinance Co., another PIF subsidiary, to launch the region’s first residential mortgage-backed securities — further reflecting its role in diversifying ����ֱ��’s financial markets and pioneering innovative investment initiatives. 

RIYADH: ����ֱ��’s hospitality sector continued its growth momentum in the first half of 2025, with the average daily rate rising 1.9 percent year on year to reach SR821.8 ($219.06), according to new data. 

The findings, published in JLL’s “Q2 2025 Hotels Market Dynamics” report, also showed that revenue per available room edged up 0.2 percent to SR512.3 during the same period, reflecting the Kingdom’s ongoing transformation of its tourism and hospitality industries. 

Nationwide occupancy eased by 1.7 percentage points year on year to 62.3 percent in the first half, but the sector remains underpinned by the Saudi Vision 2030 agenda, which aims to raise tourism’s contribution to gross domestic product from 3 percent to 10 percent and generate 1 million new jobs by the end of the decade. 

It also aligns with the country’s goal of attracting 150 million visitors annually by 2030, surpassing the initial Vision 2030 target of 100 million. 

Taimur Khan, head of research at JLL Middle East and Africa, said: “The evolving market dynamics in ����ֱ��’s key cities point to significant transformations, driven by ambitious government initiatives and a strategic focus on diversifying the Kingdom’s tourism offerings, in line with the Vision 2030 goals.”  

He added: “Despite short-term performance adjustments, the long-term outlook remains positive as expanding tourism offerings create new development opportunities and attract domestic and international investors seeking to capitalize on the Kingdom’s strong tourism growth.”  

The report further indicated that after experiencing record tourism growth in 2024, ����ֱ��’s hospitality sector is now witnessing major strategic changes, fueled by a surge in leisure tourism and a significant rise in high-quality offerings outside conventional urban hubs. 

Although religious tourism remained strong in the holy cities of Makkah and Madinah, performance metrics in Riyadh and Jeddah were more subdued or saw declines, reflecting differing market dynamics across regions. 

Riyadh faced the steepest performance declines in the first half of 2025, with both occupancy and ADR dropping 5 percentage points and 6.9 percent year on year, respectively. In contrast, Jeddah showed mixed results, with a 1.9 percentage point rise in occupancy despite a 7.1 percent fall in ADR.

Makkah posted relatively strong results, recording a 7.1 percent increase in ADR and a 3.1 percent rise in RevPAR, even as occupancy slipped 3.7 percentage points.

Madinah registered solid RevPAR growth of 2.7 percent in the year to June 2025. 

“In H1 2025, both Riyadh and Jeddah maintained healthy development pipelines. The capital city added approximately 690 keys in H1 2025, increasing the total hospitality stock to 49,100 keys. An additional 1,080 keys are expected to enter the market in H2, reinforcing its position as the Kingdom’s primary business and increasingly important leisure destination,” the report said. 

“New hotel developments in Riyadh are increasingly positioned away from traditional city centers, with international operators like Marriott, Hilton, Accor, and IHG driving high-quality supply growth,” it added. 

The report also disclosed that Jeddah added 750 new hotel keys, raising its total inventory to 18,760, with a further 1,300 expected by the end of the year. This positions the city for continued growth, supported by rising demand from major events such as Jeddah Season, Formula 1, and Saudi Pro League matches. 

During the first half of 2025, Makkah and Madinah maintained stable hotel inventories at 154,590 keys and 60,170 keys, respectively. However, notable expansion is anticipated in the second half of the year, with 5,590 new keys planned for Makkah and 710 for Madinah.