Overview
As the Kingdom of Saudi Arabia (KSA) embarks on a transformational journey towards less dependence on oil and moving towards developing its industrial base as part of vision 2030, the Aerospace sector is one of great importance and high priority.
Today, the Aerospace Cluster in KSA is enjoying accelerated growth and is attracting a multitude of interested global investors. With the aim of increasing FDI, the Kingdom offers multiple advantages that include:
- Geographical proximity to three continents.
- Attractive tax exemptions.
- Human capital development support.
- Highly competitive land and energy costs.
- Well-developed infrastructure: $150Bn in transport and logistics investment by 2030.
The aerospace cluster has three focus areas:
Advancing R&D / innovation
Localization on the production of Aerospace-grade materials
Development of Aerospace Supply chain
Saudi Arabia’s Crown Prince and Prime Minister Mohammed bin Salman launched the National Industrial Strategy (NIS), a comprehensive roadmap that contributes to accelerating and diversifying the Kingdom’s industrial development. The NIS aims to build an agile and competitive sustainable private sector led by an industrial economy.
Strategic Objectives:
- Build national resilience.
- Become an integrating regional hub.
- Expand global leadership in select segments (including Aerospace)
Enabling Objectives:
- Build world-class supply chains.
- Grow the industrial business base.
- Supercharge KSA international trade.
- Cultivate innovation and know-how.
Highlights of NIS Targets
- 36,000 factories by 2035
- >3x as many factories as in 2022
- $148Bn in manufacturing exports by 2035
- 5.3x the export value in 2020
Direct free trade access to the GCC market
Highly educated young
WorkForce
Geographical proximity
to 3 Continents
Attractive tax
incentives
NIDC has analyzed the global aerospace industry, trends and enablers, and positioning of KSA to identify (4) focus areas for aerospace investment:
- Aerospace grade specialty materials.
- Components and systems.
- MRO (maintenance, repair & overhaul)
- New aerospace platforms and ecosystems (UAS & Leo Satellite)
- Human Capital Development
Market
2021
3.2 T
Impact by
2035
3 B GDP
100 k JOBS
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