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
Short Url
Updated 25 February 2025
Follow

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.


Saudi minister at Davos urges collaboration on minerals

Global collaboration on minerals essential to ease geopolitical tensions and secure supply, WEF hears. (Supplied)
Updated 20 January 2026
Follow

Saudi minister at Davos urges collaboration on minerals

  • The reason of the tension of geopolitics is actually the criticality of the minerals

LONDON: Countries need to collaborate on mining and resources to help avoid geopolitical tensions, Saudi Arabia’s minister of industry and mineral resources told the World Economic Forum on Tuesday.

“The reason of the tension of geopolitics is actually the criticality of the minerals, the concentration in different areas of the world,” Bandar Alkhorayef told a panel discussion on the geopolitics of materials.

“The rational thing to do is to collaborate, and that’s what we are doing,” he added. “We are creating a platform of collaboration in Saudi Arabia.”

Bandar Alkhorayef, Saudi Minister of Industry and Mineral Resources 

The Kingdom last week hosted the Future Minerals Forum in Riyadh. Alkhorayef said the platform was launched by the government in 2022 as a contribution to the global community. “It’s very important to have a global movement, and that’s why we launched the Future Minerals Forum,” he said. “It is the most important platform of global mining leaders.”

The Kingdom has made mining one of the key pillars of its economy, rapidly expanding the sector under the Vision 2030 reform program with an eye on diversification. Saudi Arabia has an estimated $2.5 trillion in mineral wealth and the ramping up of extraction comes at a time of intense global competition for resources to drive technological development in areas like AI and renewables.

“We realized that unlocking the value that we have in our natural resources, of the different minerals that we have, will definitely help our economy to grow to diversify,” Alkhorayef said. The Kingdom has worked to reduce the timelines required to set up mines while also protecting local communities, he added. Obtaining mining permits in Saudi Arabia has been reduced to just 30 to 90 days compared to the many years required in other countries, Alkhorayef said.

“We learned very, very early that permitting is a bottleneck in the system,” he added. “We all know, and we have to be very, very frank about this, that mining doesn’t have a good reputation globally.

“We are trying to change this and cutting down the licensing process doesn’t only solve it. You need also to show the communities the impact of the mining on their lives.”

Saudi Arabia’s new mining investment laws have placed great emphasis on the development of society and local communities, along with protecting the environment and incorporating new technologies, Alkhorayef said. “We want to build the future mines; we don’t want to build old mines.”