Arab News
Arab News, Wed, Feb 26, 2025 | Shaban 27, 1446
Saudi Arabia signs deals to localize aerospace manufacturing, enhancing aviation hub status
Saudi Arabia:
Saudi Arabia has signed multiple deals to
localize aerospace manufacturing, including aircraft maintenance, air taxis,
vertical take-off and landing systems, and helicopter production.
During the Aerospace Connect Forum, held in Jeddah
from Feb. 24 to 25, the National Industrial Development Center signed a
memorandum of understanding with European aerospace company Airbus to advance
helicopter development and localization in the Kingdom.
This agreement, along with others, supports Saudi
Vision 2030 by advancing aerospace localization and reinforcing its position as
a global leader in the sector. It also aligns with the Kingdom’s broader
aviation and industrial strategies, promoting local manufacturing, attracting
investment, and reducing reliance on imports.
Additionally, these deals contribute to the
General Authority for Military Industries’ goal of localizing 50 percent of
military spending by 2030.
By partnering with global aerospace leaders, Saudi
Arabia is fostering technological advancement, high-skilled jobs, and industrial
growth.
The Industrial Center has also signed a MoU with
Kingdom Aero Industries and Doroni, focusing on localizing and manufacturing
light-sport aircraft with vertical takeoff and landing capabilities.
This partnership is a significant move for both
parties as they aim to develop the H1-X flying car and strengthen Saudi Arabia’s
position inthe aerospace sector.
US startup Doroni has secured a promising
partnership with Innovation Wings Industries, operating as KAI in the Kingdom.
The deal involves a $30 million investment, with
KAI contributing $5 million initially and up to $25 million over the next two
years, in exchange for a 40 percent stake in Doroni.
This partnership is set to accelerate the
development of the H1-X, with commercial-scale manufacturing planned in Saudi
Arabia starting in 2027.
Both companies plan to establish a joint venture
to manufacture and distribute the flying car globally.
For the startup, this represents a major step in
realizing its vision, while for KAI, it offers the opportunity to create a
world-class production hub in the Kingdom, supporting the nation’s aviation
ambitions.
The NIDC also signed a deal with the Second
Airport Cluster Co. to localize national industries in the aerospace sector by
enabling and incentivizing investors by providing dedicated spaces within
airports to establish specialized aircraft maintenance centers.
The strategic partnership represents a significant
advancement in airport operations by uniting government efforts and fostering
the localization of aircraft component manufacturing in the Kingdom, aligning
with the National Aviation Strategy and the National Industry Strategy,
according to Cluster2.
As part of the National Industrial Development and
Logistics Program’s efforts to localize the manufacturing of titanium sponge
metal-melting process pipes, the center signed an MoU with AIC STEEL and AMIC to
strengthen local capabilities in advanced materials production and support
industrial supply chains.
The NIDC also inked an agreement with Life Shield,
a Saudi company with extensive experience in the defense, military, and security
sectors.
Moreover, another deal was made with Auto Gyro, a
firm which specializes in the innovation, production, and distribution of
gyroplanes. These pacts focus on localization and technology transfer for
manufacturing air taxis and helicopters.