PIF Invests in Saudia Technic to Establish a National MRO Champion in the Aviation Sector
Jeddah, Saudi Arabia – December 21, 2023: The Public Investment Fund (PIF) today announced the signing of an agreement to invest in Saudia Technic, a subsidiary of Saudia Group.
Formerly known as Saudia Aerospace Engineering Industries, Saudia Technic has a long-established presence and rich legacy in Saudi Arabia, tracing its roots back to the 1960s. It provides services across key aviation maintenance, repair and overhaul segments (MRO), including line, base, components and engines.
PIF and Saudia Group will transform Saudia Technic into a national MRO champion by investing in infrastructure, boosting efficiency and capturing market growth in Saudi Arabia over the next decade. Saudia Technic’s ambition is to become the MRO of choice for domestic airlines and global partners seeking access to 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.
About Saudia Technic:
Saudia Technic, formerly known as Saudi Arabian Aerospace Engineering Industries, serves regional and global clients from a network of more than 100 locations around the globe. For more than 60 years, Saudia Technic has been a regional leader in the provision of aviation services, leveraging technical expertise, logistic capabilities, and supply chain to deliver end-to-end aircraft maintenance, repair, and overhaul solutions. Saudia Technic strives to be a partner of choice and a catalyst for the success of aviation.
For more information, visit saudiatechnic.com
The Public Investment Fund (PIF) is one of the largest and most impactful sovereign wealth funds in the world. Since 2015, when the board was reconstituted and oversight transferred to the Council of Economic and Development Affairs, PIF’s board of directors has been chaired by His Royal Highness Crown Prince Mohammad bin Salman bin Abdulaziz, Prime Minister, Chairman of the Council of Economic and Development Affairs, and Chairman of the Public Investment Fund. PIF plays a leading role in advancing Saudi Arabia’s economic transformation and diversification, as well as contributing to shaping the future of the global economy. Since 2017, PIF has established 93 companies. PIF is building a diversified portfolio by entering into attractive and long-term investment opportunities in 13 strategic sectors in Saudi Arabia and globally. PIF's strategy, as set out in the PIF Program 2021-2025 – one of the Vision 2030 realization programs – aims to enable many promising sectors and contribute to increasing local content by creating partnerships with the private sector, in addition to injecting at least SAR150 billion annually into the local economy. PIF works to transfer technologies and localize knowledge to build a prosperous and sustainable economy domestically. As the investment arm of Saudi Arabia, PIF looks to make unique investments, and is building strategic alliances and partnerships with significant international institutions and organizations, which contribute to achieving real long-term value for Saudi Arabia, in line with the objectives of Vision 2030. PIF has also created an operational governance model that reflects its main tasks and objectives, in line with best international practices. Applying this model of governance enhances the level of transparency and effectiveness in decision-making and future progress.
More information about PIF can be found at: www.pif.gov.sa
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