Connect with the U.S.-Saudi Arabian Business Council at PB Expo

Booth 704

Saudi Arabia is emerging as a key transportation, logistics, and tourism hub. The country’s investment in these critical industries is creating a wealth of business opportunities for U.S. companies across the aviation industry from aviation-related equipment, technology and services to aerospace materials. The U.S.-Saudi Arabian Business Council stands ready to introduce you to the Saudi Arabian aviation industry.

 

Fast Facts on the Saudi Aviation Industry:

 

• There are five Saudi-based airlines — Saudia, Flynas, Nesma Airlines, Saudi Gulf, and Flyadeal. More than 105 airlines service the market.
• Saudi Arabia has the largest market for aircraft parts in the Middle East, exports of U.S. aerospace materials to Saudi Arabia averaged $1.8 billion annually between 2010-2015.
• The Saudi Government has increased transportation and infrastructure spending by 50 percent over the past two years. Since 2017, over $16.7 billion was allocated for aviation projects. For more fast facts click here.
• Saudi Arabia has a network of 27 airports, 10 of which are international, that handled 91.8 million passengers in 2017. An estimated 78 million passengers were international.

 

Why Do Business in Saudi Arabia?

 

The current market in Saudi Arabia has grown in the past 10 years as a result of the change in regulations several air carriers have created since 2006. Budget airlines like Flynas made a major contribution to the domestic market. Given Saudi Arabia’s growing population and over 8 million pilgrims, there is an important market for people traveling between the Kingdom’s important cities. Here are a few fast facts about the three largest airlines:

 

• Saudi Arabian Airlines has a partnership with an international holding group. They own a fleet of 184 planes that serve commercial, cargo fleet and private flights.
• Flynas, founded in 2007 carried 6.6 million passengers on 60,000 domestic and international flights in 2018. They’ve expanded their domestic and international destinations and partnered with regional airlines. They’ve added 120 aircrafts to their fleet.
• Flyadeal founded through Saudi Arabian Airlines in 2016 is also committed to growth. They’ve recently purchased 30 new aircrafts from Boeing. They are the third largest air carrier and offer 70 daily flights.

 

In addition to the needs of commercial airlines, Saudi Arabia has a large market for aerospace materials given their focus on defense, and U.S. companies are their preferred vendor, $1.2 billion was spent on U.S. aerospace parts exported to Saudi Arabia. Given the importance of localization, Saudi Arabia has shifted from importing fully assembled aircrafts to parts that are assembled in the Kingdom. Parts exports from 2014-2016 rose from $278 million to $1.6 billion. There is an important market for parts manufacturers in Saudi Arabia. There is also demand for manufacturing of parts including for machining ships for aerostructure segments and aircraft mechanical systems.

 

Driving Development in Aviation

 

The Kingdom is currently implementing a comprehensive strategy for the aviation sector, viewed as an integrated system of air carriers, airports, industries, and support services.  To that end they have privatized large swaths of the industry including airports. Privatization of Saudi airports is expected to lead to enhanced passenger airport experience (SMART Airport), a more sophisticated digital infrastructure to enable seamless passenger transit, and increased workforce productivity with mobility access to data and self-service.  Targets through 2030 include development of new cargo terminals, multimodal cargo villages, and hubs, and an increase of the number of cargo airline operators in the Kingdom. Currently of the 27 airports, 11 airports are under development for expansion. These projects were created to increase passenger capacity and improve the passenger experience. A wide variety of technologies to enhance airport traffic management, upgrade airport services, and optimize performance are in demand.  They are related to increasing airport safety, security, and efficiency using IOT solutions, big data, digital and cyber security tools, machine learning and AI applications.

 

How to Tap into the Saudi Market?

 

While the Saudi Arabian market is open for partnerships and investment, many companies find it difficult to navigate their system. The Council provides services that foster business alliances between the U.S. and Saudi Arabia. Our services enable companies to enter the Saudi Arabian market and to grow in that market. We do this by offering a menu of services that include market entry strategy consulting, partner identification and introductions, market research reports, visa services and host industry specific events. We can provide expertise that can’t be found elsewhere. We also have access to important Saudi Arabian companies as well as established U.S. companies operating in Saudi Arabia, like Boeing, Lockheed Martin, Northrup Grumman and more. See a full list of our members here.

 

How to Connect

 

You can connect with us in person at PB Expo at booth 704. Our expert staff will be available to answer questions about the market and how your company to connect with the right person to foster your growth in the Kingdom.

 

Reach out to us directly by contacting Will Brodt, Business Strategy Advisor, at wbrodt@us-sabc.org or call 703-962-9300.