Saudi aviation sector secures over $20bn in deals at Riyadh forum

Saudi Arabia’s Aviation Sector Soars with Over $20 Billion in Deals at Riyadh Forum

RIYADH: Saudi Arabia’s aviation sector has experienced a significant boost with the signing of over 100 agreements, totaling more than SR75 billion ($20 billion), during the first two days of the Future Aviation Forum.

The event, held in Riyadh, saw the formalization of 102 memorandums of understanding and deals spanning various domains such as aviation services, aircraft procurement, cargo and logistics services, and advanced air mobility. This diverse array of agreements underscores the Kingdom’s ambition to solidify its position as a global leader in the aviation sector.

Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation (GACA), expressed his elation over the forum’s outcomes, noting that they had exceeded all expectations. He stated, “Over the first and second days, agreements, deals, and partnerships were established that will work toward enhancing global aviation connectivity. This underscores the international confidence in the Saudi civil aviation system and its capability to take on a leading role in this pivotal sector.” His comments highlight the growing international trust and investment in Saudi Arabia’s aviation capabilities.

One of the most notable agreements was signed between the Saudia Group and Airbus, marking the largest aircraft deal with the European manufacturer in the Kingdom’s history. This deal involves the purchase of 105 A320neo family planes, valued at $19 billion. The aircraft, which include A320neo and A321neo models, will be divided between Saudia and flyadeal, the group’s low-cost carrier. This purchase aims to expand the fleet and enhance the operational efficiency of both airlines, positioning them for future growth.

In addition, Saudi oil giant Aramco inked an agreement with Bombardier for the purchase of two new super mid-sized Challenger 3500 business jet aircraft, with deliveries scheduled for 2025 and 2026. This acquisition reflects Aramco’s strategy to bolster its business aviation capabilities and enhance its corporate travel efficiency.

Furthermore, BAE Systems established a partnership with the Saudi Academy of Civil Aviation to exchange expertise in aviation science training. This collaboration aims to enhance the quality of aviation training in the Kingdom, contributing to the development of a highly skilled workforce in the aviation sector.

Other significant agreements included a five-year contract between Saudia Cargo and Saudia Technic. This contract involves leasing up to 8,474 square meters within the Saudia Technic premises located in King Abdulaziz International Airport’s MRO Village. This arrangement is expected to enhance Saudia Cargo’s operational capacity and streamline its maintenance operations.

Additionally, NEOM, the Kingdom’s ambitious mega-project, signed an agreement with Saudia Technic to explore future collaborations in the maintenance, repair, and overhaul (MRO) of heavy-lift Uncrewed Air Systems (UAS) and passenger electric vertical take-off and landing (eVTOL) aircraft. This partnership underscores NEOM’s commitment to incorporating cutting-edge aviation technologies and advanced air mobility solutions.

Matarat Holding Co. and the Local Content and Government Procurement Authority entered into an agreement to enhance opportunities for the development and advancement of local content within the aviation sector. This collaboration aims to strengthen the local supply chain, boost economic growth, and ensure that more of the aviation industry’s value is retained within the Kingdom.

Additionally, Dammam Airport Co. signed a consulting service contract with Hill International for managing DACO projects. The company also established a cooperation agreement with the Bahrain Airport Co. and signed a training memorandum of understanding (MoU) with the Gulf Aviation Academy, emphasizing regional collaboration and knowledge exchange.

The forum also facilitated the signing of multiple air service agreements between Saudi Arabia and various countries, including Mozambique, Cambodia, Eswatini, Brunei, Romania, Malawi, Belize, Kiribati, Grenada, Lithuania, Sao Tome and Príncipe, El Salvador, and Albania. These agreements are expected to enhance international aviation connectivity and cooperation, further integrating Saudi Arabia into the global aviation network.

The Future Aviation Forum witnessed an impressive turnout, with participation from over 30 ministers, 77 leaders of civil aviation authorities, CEOs from airlines worldwide, and 7,000 industry experts and leaders from over 120 countries. This high level of engagement reflects the global significance of the event and Saudi Arabia’s growing influence in the aviation sector.

During the forum, GACA unveiled the inaugural edition of the “State of Aviation” report. This comprehensive report highlighted the sector’s substantial contribution to the Kingdom’s economy, amounting to $53 billion, and its role in creating 958,000 jobs across various regions. The report serves as a testament to the aviation sector’s critical role in driving economic development and underscores the importance of continued investment and innovation in this field.

Furthermore, GACA hosted the first exhibition aimed at facilitating investment in the Saudi aviation sector. The exhibition featured various pavilions, with the advanced air mobility pavilion being one of the most prominent. This pavilion showcased the latest innovations in air mobility, attracting significant interest from industry stakeholders and highlighting Saudi Arabia’s commitment to embracing and integrating cutting-edge aviation technologies.