Saudi Arabia advances aerospace localization with key deals

Kingdom takes bold steps to diversify its economy and become a global aerospace hub under Vision 2030

JEDDAH, Saudi Arabia (MNTV) – Saudi Arabia has signed a series of pivotal agreements to localize aerospace manufacturing, encompassing aircraft maintenance, air taxis, vertical take-off and landing (VTOL) systems, and helicopter production.

The deals, unveiled during the Aerospace Connect Forum held in Jeddah on February 24-25, align with Saudi Vision 2030 and aim to establish the Kingdom as a leader in the global aerospace industry.

The National Industrial Development Center (NIDC) signed a memorandum of understanding (MoU) with Airbus to support helicopter development and manufacturing localization. 

This initiative contributes to Saudi Arabia’s aviation and industrial strategies by attracting investments, fostering local production, and reducing import dependence. 

It also advances the General Authority for Military Industries’ target to localize 50% of military spending by 2030.

Another landmark deal saw the NIDC partner with Kingdom Aero Industries (KAI) and U.S.-based startup Doroni for the localization of light-sport aircraft production, including the H1-X flying car. 

Doroni secured a $30 million investment from KAI—$5 million upfront and $25 million over two years—for a 40% stake. 

Plans for large-scale manufacturing of the H1-X in Saudi Arabia are set for 2027, with global distribution managed through a joint venture.

Additionally, the NIDC reached an agreement with the Second Airport Cluster Co. to establish dedicated aerospace zones within airports for specialized maintenance centers. 

This partnership is part of the Kingdom’s National Aviation and Industry Strategies and seeks to improve operational efficiency across airports.

To bolster advanced materials capabilities, the NIDC also signed agreements with AIC STEEL and AMIC to localize titanium sponge metal-melting processes. 

Further collaborations with Life Shield and Auto Gyro focus on manufacturing air taxis and gyroplanes, emphasizing technology transfer and innovation.

These partnerships reflect Saudi Arabia’s commitment to technological advancement, job creation, and economic growth. 

By aligning with leading global aerospace firms, the Kingdom is charting a path toward a robust, self-reliant aerospace sector.