Strategic Investment Bolsters Saudi Aviation: PIF Backs Saudia Technic

Expansion of MRO Services to Propel Saudi Arabia's Global Aviation Influence

In a pivotal move toward enhancing its aviation sector, the Public Investment Fund (PIF) has declared its intention to channel funds into Saudia Technic, an arm of the Saudia Group. This firm, formerly known as Saudia Aerospace Engineering Industries, has a rich history in the region, established since the 1960s. It provides a broad scope of aviation maintenance, repair, and overhaul (MRO) services, covering line, base, component, and engine maintenance.

The collaboration between PIF and Saudia Group is set to transform Saudia Technic into a leading national MRO provider. This transformation will be fueled by extensive investment in infrastructure and operational improvements, in addition to harnessing the potential of the Kingdom’s rapidly expanding aviation market over the next decade. Saudia Technic is striving to become the MRO provider of choice for both local and international airlines looking to penetrate the Saudi market.

The investment project is at the heart of developing a vast MRO village in Jeddah, which will cover about 1 million square meters. This ambitious undertaking will feature a state-of-the-art jet propulsion center that aims to position Saudia Technic as a leader in the Middle East’s MRO industry. The expansion of the MRO village will significantly increase hangar space and the number of component shops, strategically preparing Saudia Technic for an anticipated rise in demand for line, base, engine, and component services in Saudi Arabia. Additionally, the establishment of an engine test cell will serve to enhance the maintenance capabilities for both wide-body and narrow-body aircraft engines, supporting the Kingdom’s MRO ambitions through the year 2030.

Raid Ismail, Co-Head of MENA Direct Investments at PIF, remarked, PIF is committed to investing in one of the fastest-growing and interconnected sectors globally. The investment in Saudia Technic is a critical step in our effort to develop a top-tier, world-renowned aviation sector in Saudi Arabia.

Captain Fahd Cynndy, CEO of Saudia Technic, expressed enthusiasm about the strategic investment from PIF, stating, This investment signifies our resolve to become a frontrunner in the aviation industry. We are eager to collaborate with PIF to mold the future of aviation in Saudi Arabia and beyond. Our goal is to boost our service capabilities, foster innovation, and become the preferred MRO provider for airlines and partners globally.

With a firm commitment to establishing Saudi Arabia as a pivotal global aviation hub, the nation is actively creating new industry ecosystems and establishing strategic alliances. PIF’s investments in the aviation sector are extensive and include plans for the King Salman International Airport in Riyadh, which aims to serve up to 120 million passengers by 2030. Other significant projects include The Helicopter Company, created to improve local transportation and meet increasing demand within Saudi Arabia, and AviLease, an aircraft leasing company designed to support the growth of the country’s vibrant aviation ecosystem.

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