(Bloomberg) — Riyadh Air, Saudi Arabia’s new airline, has secured a $1.3 billion credit facility from a group of Gulf banks as it seeks to raise cash ahead of its planned launch in summer 2025.

The airline, owned by the kingdom’s sovereign wealth fund, signed a revolving Islamic credit facility worth 3 billion riyals, with an option for an additional 2 billion riyals from eight Gulf banks, according to a statement released THURSDAY.

The financing “will play a critical role in supporting Riyadh Air’s ambitious aircraft acquisition activities and meeting the airline’s near-term working capital needs as it prepares to launch operations,” according to the press release.

The airline placed an order for 60 narrow-body planes with Airbus SE on Wednesday, adding short-haul planes to its fleet in a bid to compete with regional incumbents including Emirates and Qatar Airways. These efforts are part of Crown Prince Mohammed Bin Salman’s initiative to make the Saudi economy less dependent on oil.

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