Saudi Arabia’s Public Investment Fund has announced a strategic investment in the Saudia Technic company to help support its aviation sector.
Saudia Technic, formerly known as Saudi Aerospace Engineering Industries plays a key role in maintaining and repairing aircraft.
The partnership will help towards the government’s goal of increasing annual passenger numbers to 330 Million by 2030.
About the Investment
The PIF’s investment in Saudia Technic, a subsidiary of the Saudia Group, is a significant milestone in Saudi Arabia’s aviation sector. Saudia Technic, previously known as Saudia Aerospace Engineering Industries, has a rich history dating back to the 1960s.
It offers services across key aviation maintenance, repair, and overhaul (MRO) segments, including line, base, components, and engines. The financial details of the investment remain undisclosed. However, the primary aim of this strategic move is to transform Saudia Technic into a national MRO champion.
The Vision for Saudia Technic
With this investment, Saudia Technic aims to become the preferred MRO option for domestic airlines and global partners seeking access to the Saudi market. The PIF and Saudia Group’s ultimate vision is to establish Saudia Technic as the leading MRO service provider in the Middle East.
To achieve this ambitious goal, the investment will aid in developing an MRO village spanning approximately one million square meters in Jeddah. This village will include a state-of-the-art jet propulsion center that will significantly expand Saudia Technic’s capabilities.
The MRO Village and Its Impact
The upcoming MRO village in Jeddah is expected to increase hangar capacity and the number of component shops significantly. This expansion will effectively position Saudia Technic to meet Saudi Arabia’s future market demand, unlocking scale and efficiency across line, base, engine, and component segments.
The MRO village will also include constructing and operationalizing an engine test cell. This cell will serve next-generation wide-body and narrow-body aircraft engines, solidifying Saudi Arabia’s MRO ambitions through 2030.
A significant Milestone
Raid Ismail, Co-Head of MENA Direct Investments at PIF, expressed his views on the investment:
“PIF continues to invest in one of the world’s most dynamic and rapidly expanding sectors in an increasingly interconnected global economy. The investment in Saudia Technic is a significant milestone as we unlock capabilities, localize expertise, and create a first-class, world-leading aviation sector in Saudi.”
Captain Fahd Cynndy, CEO of Saudia Technic, also shared his thoughts:
“This strategic investment by PIF underscores our commitment to becoming a leader in the aviation industry. We are excited to work alongside PIF in shaping the future of aviation in Saudi Arabia and the region. Together, we aim to enhance our capabilities, drive innovation, and become the MRO of choice for airlines and partners worldwide.”
Emerging Aviation Hub
Saudi Arabia is steadily strengthening its position as a global aviation hub. The country has implemented new industry ecosystems and partnerships to achieve this goal.
The PIF has already made significant investments in the sector, including plans to develop the King Salman International Airport in Riyadh, which can accommodate 120 million travelers by 2030.
Other initiatives include the launch of The Helicopter Company, designed to enhance local connectivity and meet the rapidly growing demand in Saudi Arabia, and AviLease, an aircraft leasing company that supports the growth of the country’s expanding aviation ecosystem.
Saudia Technic, formerly known as Saudi Arabian Aerospace Engineering Industries, serves regional and global clients from a network of more than 100 locations worldwide. For over 60 years, Saudia Technic has been a regional leader in aviation services.
Saudi Technic has 52 operational bases, 25 globally located, and the remaining 27 are within Saudi Arabia. With over sixty years of expertise in the aerospace industry, it has a wealth of experience.
The company possesses 4 hangar facilities, 3 dedicated to C-check tasks and 1 for unscheduled upkeep. Saudi Technic takes pride in its well-trained workforce, with Saudis making up 90% of its staff.
Additionally, it leverages technical expertise, logistic capabilities, and supply chain to deliver end-to-end aircraft maintenance, repair, and overhaul solutions. Saudia Technic aims to be a partner of choice and a catalyst for the success of aviation.
The Public Investment Fund (PIF) is one of the world’s largest and most influential sovereign wealth funds. PIF is leading in advancing Saudi Arabia’s economic transformation and diversification, shaping the global economy’s future.
Since 2015, when the board was reconstituted and oversight was transferred to the Council of Economic and Development Affairs, PIF’s board of directors has been chaired by His Royal Highness Crown Prince Mohammad bin Salman bin Abdulaziz.
The Broader Picture
The investment in Saudia Technic aligns with Saudi Arabia’s broader strategy of diversifying its economy away from oil as part of its Vision 2030 initiative.
The PIF has been actively developing 13 sectors as part of this diversification strategy, with projects ranging from aviation, tourism, sports, gaming, camel milk, pharmaceuticals, and cars.
These initiatives, backed by significant government and private sector investment, aim to triple annual passenger traffic to 330 million by 2030 and increase the number of destinations to 250.
The Future of Aviation
The strategic investment by PIF in Saudia Technic is a significant step towards realizing Saudi Arabia’s vision of becoming a global aviation hub. It strengthens Saudia Technic’s position in the market and contributes towards the broader economic diversification goals set by the nation as part of Vision 2030.
With this investment, the future of aviation in Saudi Arabia looks promising, and the country is well on its way to becoming a dominant player in the global aviation industry.
The growth and success of Saudia Technic will be a critical factor in achieving this goal, and the world will undoubtedly watch closely as this transformation unfolds.
Riyadh Air and Turkish Airline Partnership
The PIF-backed Riyadh Air and Turkish Airlines also recently signed an MoU to enhance travel benefits between Saudi Arabia and Türkiye. The agreement allows a code-sharing arrangement and will allow travelers to share loyalty points between both airlines.
The agreement also allows seamless connectivity via Istanbul Airport to 130 destinations worldwide.