According to sources familiar with the matter, Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), is in discussions to acquire a stake in Flynas, a low-cost carrier, in a bid to bolster the kingdom’s tourism industry. Goldman Sachs Group is advising shareholders on the potential sale, which includes Prince Alwaleed Bin Talal’s Kingdom Holding Co. Flynas had previously considered an initial public offering (IPO), but this may be postponed if the sale to PIF proceeds.

Saudi Arabia has been investing heavily in the aviation industry to increase tourism and diversify the economy away from oil. Flynas is also expanding by establishing local units in two additional countries and increasing its jet orders to become the Middle East’s largest low-cost carrier and one of the top five globally. PIF is also building a new airport and setting up an airline in the capital as part of its plan to transform the economy and reduce dependence on fossil fuels.