Saudi Arabia’s Aviation Sector Soars with Over $20 Billion in Agreements at Future Aviation Forum
The aviation sector in Saudi Arabia received a significant boost with more than 100 agreements totaling over SR75 billion ($20 billion) signed during the first two days of the Future Aviation Forum held in Riyadh.
Major Deals and Partnerships
The Riyadh event witnessed the signing of 102 memorandums of understanding and deals covering various aspects of the aviation industry, including aviation services, aircraft procurement, cargo and logistics services, and advanced air mobility.
Abdulaziz Al-Duailej, the president of the General Authority of Civil Aviation, expressed his excitement at the outcomes of the forum, stating that the agreements and partnerships established during the event will contribute to enhancing global aviation connectivity.
Landmark Agreements
One of the most significant agreements was between the Saudia Group and Airbus for the purchase of 105 A320neo family planes, marking the largest aircraft deal with the European firm in the Kingdom’s history. The $19 billion deal includes A320neo and A321neo models to be distributed between Saudia and flyadeal, the group’s low-cost carrier.
In addition, Saudi oil giant Aramco signed a deal with Bombardier for the purchase of two new super mid-sized Challenger 3500 business jet aircraft.
Collaboration and Innovation
Other agreements included partnerships between BAE Systems and the Saudi Academy of Civil Aviation for aviation science training, as well as collaborations between Saudia Cargo and Saudia Technic for aircraft leasing and maintenance. NEOM also engaged with Saudia Technic for future discussions on heavy-lift Uncrewed Air System and passenger electric vertical take-off and landing aircraft.
International Air Service Deals
Saudi Arabia also signed air service agreements with countries such as Mozambique, Cambodia, Eswatini, Brunei, Romania, Malawi, Belize, Kiribati, Grenada, Lithuania, Sao Tome and Principe, Salvador, and Albania.
Industry Impact and Growth
The forum attracted over 30 ministers, 77 leaders of civil aviation authorities, CEOs from airlines worldwide, and 7,000 industry experts and leaders from over 120 countries. During the event, GACA unveiled the “State of Aviation” report highlighting the sector’s $53 billion contribution to the Kingdom’s economy and its role in generating 958,000 jobs.
GACA also hosted an exhibition to facilitate investment in the Saudi aviation sector, with a focus on advanced air mobility.