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New agreement aims to boost Saudi Arabia’s aerospace industry through cooperation with Embraer

written by Newsdesk | May 22, 2024

New agreement aims to boost Saudi Arabia's aerospace industry through cooperation with Embraer
NIDC, AHQ Group and Embraer to cooperate in the development of aerospace ecosystem in the Kingdom of Saudi Arabia

Saudi Arabia’s National Industrial Development Center (NIDC), AHQ Group and Brazilian aerospace giant Embraer have signed a Memorandum of Understanding (MoU) to develop a joint strategy for growing the Kingdom’s aerospace ecosystem.

The agreement, inked at the Future Aviation Forum in Riyadh on May 21, 2024, will see the parties discuss the adoption of Embraer aircraft in Saudi Arabia, as well as potential technological cooperation, supply chain development and human capital initiatives.

Embraer, the world’s third-largest commercial aircraft manufacturer, has been working with local companies and the Saudi government to promote its product portfolio and establish industrial collaboration in line with the country’s Vision 2030 strategic plan.

The MoU marks another important milestone in Embraer’s efforts to strengthen its ties with Saudi Arabia’s burgeoning aerospace cluster, which is a key focus of the Kingdom’s economic diversification drive.

NIDC, which is tasked with facilitating the growth and diversification of Saudi Arabia’s manufacturing and industrial base, has been fostering partnerships between local entities and international manufacturers to support the Vision 2030 goals.

Under the agreement, Embraer and AHQ will also further review the potential for the Brazilian company’s E2 family of regional jets to be selected as the aircraft of choice for a new airline project in the region.

The E2 is Embraer’s latest generation of regional aircraft, designed to offer improved efficiency, comfort and environmental performance compared to its predecessor, the E-Jet.


Saudi Arabia has identified the aerospace sector as a key pillar of its plans to reduce its reliance on oil revenues and create high-skilled jobs for its young population. The Kingdom has set a target of localizing 50% of its military spending by 2030, including through the development of domestic manufacturing capabilities.

In recent years, Saudi Arabia has launched several initiatives to support the growth of its aerospace industry, including the establishment of a dedicated aerospace academy and the creation of a new national airline, RIA, which placed an order for up to 72 Boeing 787 Dreamliners at the 2022 Farnborough Airshow.

The partnership with Embraer, which has a strong track record of working with emerging aerospace nations to develop their local capabilities, is expected to provide a significant boost to Saudi Arabia’s ambitions in the sector.

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