Saudi Arabia inaugurated on Monday its first industrial city dedicated to aircraft manufacturing and maintenance in Jeddah, marking a significant step in the Kingdom’s aviation industry. The government also issued new licenses for aircraft maintenance, repair, and overhaul (MRO), reinforcing its commitment to developing the sector.
The launch took place during the Aviation Industry Forum in Jeddah, held under the patronage of Minister of Industry and Mineral Resources Bandar Alkhorayef and organized by the National Industrial Development Center. The event gathered high-ranking officials, industry leaders, and decision-makers to discuss the latest developments in the aviation sector, both locally and globally, while exploring investment opportunities.
New industrial licenses were granted in collaboration with the General Authority of Civil Aviation (GACA) and the General Authority for Military Industries (GAMI). They cover various activities, including aircraft maintenance, unmanned aerial vehicles (UAVs), navigation systems, and electronic systems.
The Ministry of Industry and Mineral Resources emphasized that the new licenses will provide investors with significant benefits, including incentives and support programs, to help localize and grow the aviation sector.
As part of this effort, the first aircraft maintenance license was awarded to Middle East Propulsion Company (MEPC), while another was granted to Saudia Aerospace Engineering Industries (SAEI).
Deputy Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah told Asharq Al-Awsat that the designated land will be exclusively used for aviation-related industries to achieve strategic goals.
The focus will be on manufacturing aircraft components, such as aluminum and titanium parts, landing gear, and modern transport aircraft, he explained.
Aircraft manufacturing is a core component of Saudi Arabia’s National Industrial Strategy, and its development involves identifying necessary investments and regulatory frameworks.
GACA is a strategic partner in this effort, working alongside the Ministry of Industry under the leadership of the National Industrial Development Center.
Moreover, global aerospace companies such as Embraer, Turkish Aerospace Industries (TAI), Boeing, and Airbus are actively seeking environments that provide reliable local suppliers for aircraft manufacturing, bin Salamah said.
With a growing demand for aircraft components and engines worldwide, Saudi Arabia is in a strong position to support the industry due to its abundant raw materials, he added.
Following the establishment of three major automotive factories in the Kingdom, around 30 Tier-1 and Tier-2 suppliers are in discussions about investment, while other automotive companies are also considering setting up production facilities.
Meanwhile, GACA President Abdulaziz Al-Duailej revealed to Asharq Al-Awsat that several companies have applied for air cargo service licenses in Saudi Arabia.
A new cargo license will soon be issued at Dammam airport, followed by an airline license in Madinah and Qassim in the coming years, he added.
GACA is overseeing the implementation of the National Aviation Strategy, which aims to double passenger numbers, increase air cargo capacity, and expand direct flight destinations to over 250.
Achieving these goals requires airport expansions, additional airlines, and larger aircraft fleets, as well as enhanced maintenance services.
