During their meeting in Beijing, Saudi Arabia and China are exploring private sector investment opportunities

RIYADH: Saudi Arabia’s aviation sector received a major boost with more than 100 deals worth more than SR75 billion ($20 billion) signed in the first two days of the Future Aviation Forum.

During the Riyad event, 102 memorandums of understanding and agreements were signed covering various aviation services, aircraft procurement, cargo and logistics services and advanced air mobility.

Abdulaziz Al-Duailej, president of the Civil Aviation Authority, said the forum’s results exceeded all expectations.

“Days one and two saw agreements, transactions and partnerships struck that will work to improve global air connectivity. This underlines international confidence in the Saudi civil aviation system and its ability to take a leading role in this key sector,” Al-Duailej said.

The most significant agreement was signed between Saudia Group and Airbus for the purchase of an additional 105 A320neo family aircraft, representing the largest aircraft agreement with a European company in the history of the Kingdom.

As part of the $19 billion deal, which covers the A320neo and A321neo models, the aircraft will be distributed between Saudia and Flyadeal, the group’s low-cost carrier.

Meanwhile, Saudi oil giant Aramco has signed an agreement with Bombardier to purchase two new Challenger 3500 super-medium-size business aircraft, with delivery scheduled for 2025 and 2026.

Additionally, BAE Systems signed an agreement with the Saudi Civil Aviation Academy to exchange experiences in the field of aviation science training.

Other agreements include a five-year agreement signed between Saudia Cargo and Saudia Technic for the lease of up to 8,474 sq m. at Saudia Technic located at King Abdulaziz International Airport, MRO Village.

The transactions also included NEOM’s agreement with Saudia Technic to engage in future discussions and cooperation in the areas of maintenance, repair and overhaul of heavy uncrewed aircraft (UAS) and electric passenger vertical take-off and landing, known as eVTOL, aircraft.

Matarat Holding Co. and the Office for Local Content and Government Procurement agreed to support collaboration to enhance capacity and capacity to develop and improve local content.

Additionally, Dammam Airport Co. signed a contract for the provision of consulting services with Hill International to manage DACO projects. It also signed a cooperation agreement with Bahrain Airport Co. In addition, it signed a Memorandum of Understanding on training with Gulf Aviation Academy.

The deals also included Saudi Arabia signing air service agreements with Mozambique, Cambodia, Eswatini and Brunei, as well as Romania, Malawi and Belize. In addition, the Kingdom has signed similar agreements with Kiribati, Grenada, Lithuania and São Tomé and Príncipe, as well as El Salvador and Albania.

The forum was well attended, with over 30 ministers, 77 civil aviation authority leaders, airline CEOs from around the world, and 7,000 experts and industry leaders from over 120 countries taking part.

During the forum, GACA presented the inaugural edition of the State of Aviation report, highlighting the sector’s $53 billion contribution to the Kingdom’s economy and its role in creating 958,000 jobs across regions.

GACA also hosted the first exhibition aimed at facilitating investment in the Saudi aerospace sector, with particular emphasis on the Advanced Air Mobility Pavilion, which was one of the most important pavilions at the exhibition.