Above the blue sky, there may be more marks of 'Made in Saudi Arabia' in the future. With the signing of an agreement, Saudi Arabia is no longer satisfied with being just a super buyer in the global aviation market, but is determined to introduce core technologies into the domestic market, allowing this oil kingdom to truly "soar" in the high-end manufacturing field.

From assembly to the entire industry chain

According to the memorandum, this cooperation is not simply about procurement or assembly, but aims to deeply embed into the industrial chain. Both parties plan to establish a comprehensive aviation industrial base in Saudi Arabia, whose blueprint goes far beyond the traditional factory concept and will integrate research and development, manufacturing, assembly, maintenance, repair, and logistics.

As a preliminary focus, both parties will study the establishment of an aviation engineering center aimed at systematically enhancing Saudi Arabia's national capabilities in aircraft manufacturing, whole machine assembly, and deep maintenance and repair. This means that some helicopters or aircraft flying over Saudi Arabia in the future may have their bodies, components, and even the entire aircraft labeled as "Made in Saudi Arabia". The construction of a supporting logistics network has also been put on the agenda to ensure efficient connection between the upstream and downstream of the industrial chain.

Technology transfer and local talent generation

Another major highlight of this cooperation is Airbus' commitment to systematically transfer technology and knowledge to Saudi Arabia. This is not only the introduction of equipment, but also a comprehensive input of production processes, management systems, quality standards, and research and development capabilities.

In order to truly root technology in Saudi soil, the agreement emphasizes the importance of talent cultivation. Both parties will collaborate with domestic educational institutions and vocational training centers in Saudi Arabia to offer relevant courses or practical training programs, cultivating a group of Saudi local engineers and technical workers who master aviation manufacturing, maintenance, and management skills. This model of teaching people how to fish will provide a continuous talent reserve for the long-term independent development of Saudi aviation industry.

Building supply chain nodes and export transformation

The memorandum also involves the construction of the industrial chain ecosystem. Both parties will take joint measures to encourage global aviation component suppliers to invest and establish factories in Saudi Arabia, gradually establishing a localized aviation supply chain cluster in Saudi Arabia. This will reduce the dependence of local manufacturing on imported components in the future, while creating more job opportunities.

In addition, the agreement also includes a forward-looking arrangement: coordinating with relevant departments in Saudi Arabia to review and optimize procurement plans, and supporting the transformation of the local aviation industry towards export-oriented. This means that Saudi Arabia is not satisfied with just meeting its own needs, but hopes to one day become a regional exporter of aviation equipment and services. To this end, both parties will also explore investment incentives and innovative financing mechanisms applicable to the industry, providing financial support for the growth of local enterprises.

For Saudi Arabia, which is striving to break away from its dependence on oil, the aviation manufacturing industry is seen as a high-end track with strategic value. This industry is technology intensive, has a long industrial chain, high added value, and can drive the upgrading of multiple related industries such as materials, electronics, and machinery. By deeply binding with global industry leaders such as Airbus, Saudi Arabia is expected to quickly cross the technological threshold and directly enter the collaborative network of the global aviation industry chain.

This signing is a concrete manifestation of Saudi Arabia's grand vision for 2030 in the field of high-end manufacturing. With the landing of the engineering center, the growth of talents, and the improvement of the supply chain, Saudi Arabia's own aviation dream is accelerating.Editor/Yang Meiling