The Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia has launched AviLease, an aircraft leasing company that will focus on leasing, trading and asset management services.

In a statement on Thursday, it said AviLease will initially focus on scaling through purchase-and-lease-back transactions with airlines, portfolio acquisitions and direct orders from aircraft manufacturers.

The state fund, which is building an international portfolio of investments while also investing locally in projects that will help reduce Saudi Arabia's reliance on oil, said its assets under management had reached approximately $620 billion.

AviLease’s fleet will comprise new generation of narrow-body and wide-body aircraft from the top global aviation giants.

PIF’s ample liquidity and strong balance sheet, combined with its depth of financing and investment-structuring expertise will help the company leverage the opportunity in the aircraft leasing market, the fund said.

 (Reporting by Brinda Darasha; editing by Seban Scaria)