The Public Investment Fund (PIF) of Saudi Arabia has disclosed plans for a substantial capital infusion into the nation’s MRO sector, seeking to upgrade Saudia Technic and establish a specialized MRO village. This initiative aims to propel the country’s maintenance, repair, and overhaul (MRO) capabilities forward.
This investment will be pivotal in fostering the growth of Saudi Arabia’s MRO sector, with the establishment of a sprawling 10.7 million square foot maintenance complex in Jeddah. The complex is set to feature a state-of-the-art engine maintenance center, equipped with an engine test cell that will service a variety of aircraft engines, catering to both narrowbody and widebody models.
The PIF, in collaboration with Saudia Group, is poised to transform Saudia Technic into a leading national MRO provider. The strategy includes enhancing infrastructure, increasing operational efficiency, and seizing market expansion opportunities within Saudi Arabia over the forthcoming decade. Saudia Technic’s goal is to position itself as the premier MRO provider for domestic carriers and international partners targeting the Saudi market.
Saudia Technic currently offers a comprehensive range of services, including line, base, components, and engine maintenance at its Jeddah facility. With the construction of the new MRO village, the provider anticipates an expansion in hangar space and component shops, which is expected to lead to a greater market share of the nation’s future MRO demand.
Queries have been directed to Saudia Technic to unveil the timeline for the project’s construction, which is already underway, alongside details about regulatory approvals and potential job creation.
It’s worth noting that the Saudia Group, which is state-supported, recently underwent a rebranding of several of its business divisions. This included the Saudia Aerospace Engineering Industries, now known as Saudia Technic, and is headquartered in Jeddah.
Saudi Arabia’s ambitions in aviation are well-established, with the PIF making numerous investments in the industry. These efforts include expanding the King Salman International Airport in Riyadh to handle up to 120 million passengers annually by 2030, establishing The Helicopter Company, and launching AviLease for aircraft leasing services.
In a move to further expand its aviation footprint, the country launched Riyadh Air in March 2023. As the second national carrier following Saudia Airlines, Riyadh Air is set to begin operations in 2025. The new airline has already placed orders for 39 Boeing 787-9 aircraft, with an additional 33 options for the widebody jets.