The Public Investment Fund (PIF) signed an agreement to invest in Saudia Technic, a subsidiary of Saudia Group.
Saudia Technic has a well-established presence and a history full of achievements in the kingdom dating back to the 1960s. It provides a wide range of aircraft maintenance, repair, and overhaul (MRO) services. Moreover, its services include line, base, components, and engine repairs.
The PIF and Saudia Group seek to transform Saudia Technic into a leading national company. Therefore, they are investing in infrastructure, increasing efficiency, and taking advantage of growth opportunities in the kingdom over the next decade. Hence, Saudia Technic aspires to be the ideal choice for local airlines and global partners wishing to enter the Saudi market.
Investment’s importance
The investment will support the development of a 1 million-square-meter MRO complex in Jeddah. Additionally, the facility will include a dedicated jet propulsion center. This will make Saudia Technic the leading company in the MRO field in the Middle East.
Aircraft hangars
The new MRO complex will significantly increase hangar capacity and the number of component shops. This enhances Saudia Technic’s position and its ability to benefit from future market demand in the kingdom. Additionally, it will also help raise the effectiveness and efficiency of MRO services at all levels, including engine services and specialized aircraft hangars.
Next-gen services
The MRO facility will include the construction and operationalization of an engine test cell that will serve next-generation wide-body and narrow-body aircraft engines. This fulfills the kingdom’s 2030 aspirations for the future of the aviation services sector.
On this occasion, Raid Ismail, co-head of MENA direct investments at PIF, said: “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.”
Strategic investment
For his part, Captain Fahd Cynndy, CEO of Saudia Technic, added: “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.”
Global aviation hub
Saudi Arabia continues to strengthen its position as a global aviation hub. The PIF’s portfolio includes large investments in this sector aimed at stimulating the business system and new partnerships. These include plans for King Salman International Airport in Riyadh, which aims to have a capacity for 120 million travelers by 2030. Other initiatives include The Helicopter Company which was created to enhance local connectivity and meet fast-growing demand in Saudi. Moreover, AviLease, an aircraft leasing company, is designed to support the growth of the country’s expanding aviation ecosystem.
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