Saudi Arabia signs deals to localize aerospace manufacturing, enhancing aviation hub status

The deal with Airbus was signed during the Aerospace Connect Forum. X/@Aerosforum2025
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Updated 25 February 2025
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Saudi Arabia signs deals to localize aerospace manufacturing, enhancing aviation hub status

JEDDAH: 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.


Education spending surges 251% as students return from autumn break: SAMA

Updated 12 December 2025
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Education spending surges 251% as students return from autumn break: SAMA

RIYADH: Education spending in Saudi Arabia surged 251.3 percent in the week ending Dec. 6, reflecting the sharp uptick in purchases as students returned from the autumn break.

According to the latest data from the Saudi Central Bank, expenditure in the sector reached SR218.73 million ($58.2 million), with the number of transactions increasing by 61 percent to 233,000.

Despite this surge, overall point-of-sale spending fell 4.3 percent to SR14.45 billion, while the number of transactions dipped 1.7 percent to 236.18 million week on week.

The week saw mixed changes between the sectors. Spending on freight transport, postal and courier services saw the second-biggest uptick at 33.3 percent to SR60.93 million, followed by medical services, which saw an 8.1 percent increase to SR505.35 million.

Expenditure on apparel and clothing saw a decrease of 16.3 percent, followed by a 2 percent reduction in spending on telecommunication.

Jewelry outlays witnessed an 8.1 percent decline to reach SR325.90 million. Data revealed decreases across many other sectors, led by hotels, which saw the largest dip at 24.5 percent to reach SR335.98 million. 

Spending on car rentals in the Kingdom fell by 12.6 percent, while airlines saw a 3.7 percent increase to SR46.28 million.

Expenditure on food and beverages saw a 1.7 percent increase to SR2.35 billion, claiming the largest share of the POS. Restaurants and cafes retained the second position despite a 12.6 percent dip to SR1.66 billion.

Saudi Arabia’s key urban centers mirrored the national decline. Riyadh, which accounted for the largest share of total POS spending, saw a 3.9 percent dip to SR4.89 billion, down from SR5.08 billion the previous week.

The number of transactions in the capital settled at 74.16 million, down 1.4 percent week on week.

In Jeddah, transaction values decreased by 5.9 percent to SR1.91 billion, while Dammam reported a 0.8 percent surge to SR713.71 million.

POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia. 

The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives. 

The growth of digital payment technologies aligns with the Kingdom’s Vision 2030 objectives, promoting electronic transactions and contributing to the nation’s broader digital economy.