Saudi, U.S. join forces in space exploration, expanding trade prospects

Saudi’’s space sector recorded $400 mn in revenue in 2022
Saudi, U.S. join forces in space exploration, expanding trade prospects
Intiiative aims to expedite the advancement of space-related technologies

A new agreement has been reached between Saudi Arabia and the United States (U.S.) to enhance space exploration efforts, with a focus on advancing discovery methods. During a visit by Abdullah bin Amer Alswaha, Saudi minister of Communications and Information Technology and chairman of the Saudi Space Agency, both countries expressed their commitment to promoting commercial opportunities and undertaking exploratory missions related to space, as stated in a joint statement.

This development is in line with the ongoing collaborative endeavors between nations to drive progress in the space sector. It also complements the recent partnerships established in diverse fields and industries, reflecting a shared commitment to advancement.

According to a recent report, the space industry in Saudi Arabia has demonstrated considerable growth potential, with revenues reaching $400 million in 2022. The sector is projected to achieve an average annual value of $2.2 billion from 2023 to 2030, presenting significant opportunities as emphasized in a document by the Saudi Communications, Space, and Technology Commission.

Read more: Saudi’s first woman astronaut to go to space this year

Bolstering research and development

Furthermore, the Saudi-U.S. initiative is expected to bolster research and development initiatives, expedite the advancement of space-related technologies, and promote the long-term viability of the sector.

The newly formed partnership will also facilitate the cultivation of skilled individuals and qualified national workforce through the exchange and transfer of expertise between the two parties.

According to the terms of the collaboration, both Saudi Arabia and the United States will collaborate closely to foster the growth of aerospace industries, thereby enhancing trade prospects.

Multiple framework agreements

Moreover, the Kingdom and the U.S. have revealed their contemplation of multiple framework agreements aimed at expanding collaboration in the space sector.

Regarding potential future collaboration, both nations are exploring new avenues for joint endeavors in space and earth sciences, as well as space missions.

During the aforementioned visit, Alswaha also held discussions with US Secretary of Commerce Gina Raimondo to expand bilateral cooperation in the realms of digital innovation and technology.

Back in May 2022, there were discussions between Saudi Arabia and the U.S. aimed at strengthening trade cooperation in the domains of the digital economy and innovation, as reported by the Saudi Press Agency (SPA).

Alswaha engaged in a meeting with Don Graves, the US Deputy Secretary of Commerce, during which he provided an overview of the measures undertaken by Saudi Arabia to bolster digital innovation and entrepreneurship.

Exceeding $40 billion

Supported by a robust digital infrastructure, favorable legislation, and a substantial market size, the Kingdom’s information technology market had surpassed $40 billion during that period.

The meeting involved discussions on collaborative endeavors aiming to stimulate trade, investment, and economic interchange in the telecommunications, information technology, and innovation sectors.

During that time, the two nations also explored avenues to harness the commercial opportunities presented by Saudi Arabia’s Vision 2030.

For more news on technology, click here.

Disclaimer: The content of this article is intended for informational purposes only.It does not constitute advice on tax and legal matters; neither are they financial or investment recommendations. Refer to our full disclaimer policy here.