NEOM Establishes World’s First Public Vertical Mobility System

The signing of an agreement to develop the world’s first bespoke public vertical mobility system in NEOM on Wednesday, December 1, 2021. (Asharq Al-Awsat)
The signing of an agreement to develop the world’s first bespoke public vertical mobility system in NEOM on Wednesday, December 1, 2021. (Asharq Al-Awsat)
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NEOM Establishes World’s First Public Vertical Mobility System

The signing of an agreement to develop the world’s first bespoke public vertical mobility system in NEOM on Wednesday, December 1, 2021. (Asharq Al-Awsat)
The signing of an agreement to develop the world’s first bespoke public vertical mobility system in NEOM on Wednesday, December 1, 2021. (Asharq Al-Awsat)

Saudi Arabia’s NEOM and Germany’s Volocopter, the pioneer of urban air mobility, have established a joint venture company to design, implement, and operate the world’s first bespoke public vertical mobility system in NEOM.

Air taxi and vertical logistics services will be fully integrated with the overall multi-modal and zero-emission public transit system in NEOM.

The venture will be the sole operator of initial public transit routes across NEOM, while enabling an open eVTOL (electric Vertical Take-Off and Landing) ecosystem for vertical mobility services, including logistics, emergency response and tourism.

NEOM has placed a confirmed order of 15 Volocopter aircraft to commence initial flight operations within the next two to three years.

“"In designing cities and urban infrastructure for the 21st century, mobility is at the center of the equation,” said CEO of NEOM Nadhmi al-Nasr.

“Through this joint venture with Volocopter, we are demonstrating to the world that NEOM is the ideal region to implement urban air mobility rapidly and create a fully integrated vertical mobility ecosystem.”

“NEOM is on a mission to become a global living lab for future mobility, and we are very excited to see what the future holds as we grow,” he added.

Volocopter “is a perfect match for our ambitious goals to create the first truly sustainable, shared and seamlessly integrated mobility system in the world,” said Florian Lennert, the head of mobility at NEOM.

Chief Commercial Officer at Volocopter Christian Bauer said the partnership with NEOM and the new venture that both sides are creating together is going to be an exciting journey.

"It is a once in a lifetime opportunity to be an essential part of designing and operating a completely new UAM ecosystem from the ground up without the constraint of legacy infrastructure or regulation, and as pioneers in the industry, Volocopter is honored to be the trusted partner to contribute to NEOM’s ambitious vision," he added.



Saudi Arabia’s Mandatory List Boosts Local Companies in Government Procurement

A factory in Saudi Arabia (Asharq Al-Awsat)
A factory in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia’s Mandatory List Boosts Local Companies in Government Procurement

A factory in Saudi Arabia (Asharq Al-Awsat)
A factory in Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia’s Mandatory List has emerged as a strategic lever to strengthen the role of local businesses in public sector procurement.

Designed to drive demand for Saudi-made products, the list not only expands market opportunities for domestic manufacturers but also ensures that government entities procure reliable goods that meet stringent quality standards.

Last year, government tenders that included items from the list surpassed 46,600, with a combined value of SAR67.6 billion ($18 billion).

The Local Content and Government Procurement Authority has been steadily updating the list, adding about 407 new products in 2024.

This week, officials announced a further expansion, introducing 105 additional products across seven key sectors: pharmaceuticals and medical supplies, construction, transportation and logistics, furniture, cybersecurity, and information technology.

Authorities say this effort underscores a broader commitment to make local content a cornerstone of Saudi Arabia’s future economy. By prioritizing Saudi products, the government aims to empower national industries, spur innovation, and increase job opportunities while reducing reliance on imports.

The latest update is also part of policies favoring small and medium enterprises (SMEs) and companies listed on the Saudi financial market.

The initiative seeks to strengthen local supply chains and raise the readiness of domestic factories to fulfill public sector demand.

According to the Authority, expected government spending on the newly added products exceeds SAR2.3 billion ($613 million). More than 100 Saudi factories are already equipped to meet this anticipated demand.

These measures form part of broader efforts to maximize the economic impact of public spending. In the second half of last year alone, a series of new policies, strategic agreements, and national programs contributed to economic gains exceeding SAR80 billion ($21.3 billion).

The Authority also integrated local content requirements into 54 privatization projects valued at SAR269 billion ($71.7 billion). Of these, 24 projects have already achieved their targets, representing overSAR 131 billion ($34.9 billion) in contracts aimed at boosting private sector participation and employment.