The Public Investment Fund (PIF) of Saudi Arabia has entered into a strategic investment with Saudia Technic, a branch of the prominent Saudia Group. This move is aimed at amplifying the country’s revenue streams beyond oil and fostering economic diversification.
Saudia Technic, once known as Saudia Aerospace Engineering Industries, specializes in a comprehensive range of aviation maintenance, repair, and overhaul (MRO) services. This includes line maintenance, base maintenance, component maintenance, and engine services, as per an announcement by the PIF.
The collaboration between the PIF and Saudia Group is set to shape Saudia Technic into the “national MRO champion.” This will be achieved by investing in advanced infrastructure, enhancing operational efficiency, and leveraging growth opportunities in the Saudi market over the coming decade. The financial details of the investment remain undisclosed.
Raid Ismail, co-head of Middle East and North Africa direct investments at PIF, commented on the initiative, stating, “The investment in Saudia Technic marks a pivotal moment as we strive to unlock potential, localize specialized knowledge, and foster a world-class aviation industry within the Kingdom of Saudi Arabia.”
As the largest economy in the Arab world, Saudi Arabia is actively working to reduce its reliance on oil, guided by its Vision 2030 plan. The PIF plays a significant role in this transformation, managing approximately $620 billion in assets and driving the development of 13 key sectors as part of the country’s diversification agenda.
The PIF’s portfolio spans a diverse range of industries, from aviation and tourism to sports, gaming, camel milk production, pharmaceuticals, and automotive ventures.
The aim for Saudia Technic is to establish itself as the preferred MRO service provider for both domestic and international carriers looking to access the Saudi marketplace, according to PIF.
Further development plans include the establishment of an expansive 1 million square meter MRO village in Jeddah. This facility will feature a jet propulsion center and enhance hangar capacity alongside the number of component shops. Notably, the construction will also see the development of an engine test cell catering to the latest generation of both wide-body and narrow-body aircraft engines, the PIF elaborated.
Fahd Cynndy, CEO of Saudia Technic, expressed ambitions for the collaboration: “With the PIF as our partner, we are set to augment our capabilities, foster innovation, and position ourselves as the MRO provider of choice for the global aviation community.”
The Kingdom is also keen on attracting additional tourists and expanding its aviation sector to increase its contribution to the non-oil gross domestic product (GDP). The Saudi Aviation Strategy aims to triple annual passenger traffic to 330 million by 2030 and increase the number of destinations served to 250 from the current 99. This strategy is supported by a staggering $100 billion investment from both the government and the private sector.
The PIF has already made remarkable strides in the aviation arena, with projects like the forthcoming King Salman International Airport in Riyadh, designed to handle 120 million passengers by 2030, and ventures such as the Helicopter Company and AviLease—an aircraft leasing firm—to reinforce local connectivity and aviation services.