An agreement has been inked by the Public Investment Fund (PIF) to invest in Saudia Technic, a division of Saudia Group.
With roots dating back to the 1960s, Saudia Technic, formerly known as Saudia Aerospace Engineering Industries, has a long history and significant influence in Saudi Arabia. It offers services in the areas of line, base, components, engines, and major aviation maintenance, repair, and overhaul (MRO).
During the next ten years, PIF and Saudia Group will invest in infrastructure, increase efficiency, and seize market growth in Saudi Arabia to turn Saudia Technic into a national MRO champion. The goal of Saudia Technic is to establish itself as the preferred MRO for foreign and domestic airlines looking to enter the Saudi market.
The investment will support the development of an approximately 1 million-square-meter MRO village in Jeddah, including a state-of-the-art jet propulsion center that will expand Saudia Technic into the leading MRO in the Middle East. The new MRO village will significantly increase hangar capacity and the number of component shops, successfully positioning Saudia Technic to capture Saudi Arabia’s future market demand by unlocking scale and efficiency across line, base, engine, and component segments. The MRO village will entail the construction and operationalization of an engine test cell that will serve next generation wide-body and narrow-body aircraft engines, solidifying Saudi Arabia’s MRO ambitions through 2030.
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.”
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.”
Saudi Arabia is firmly cementing its position as a global aviation hub. Stimulating new industry ecosystems and partnerships, PIF has already made significant investments in the sector. These include plans for King Salman International Airport in Riyadh, which aims to have capacity for 120 million travelers by 2030. Other initiatives include the launch of The Helicopter Company which was created to enhance local connectivity and meet fast growing demand in Saudi; and AviLease, an aircraft leasing company designed to support the growth of the country’s expanding aviation ecosystem.
