Dubai: US plane manufacturer, Boeing, has officially applied for a licence to make Riyadh its Middle East headquarters, Bloomberg reported.
The decision was taken after Saudi Arabia’s deadline for global firms to set up regional bases in the kingdom. Companies who missed out would risk losing out on lucrative government contracts.
Boeing’s President for Saudi Arabia, Asaad Aljomoai, confirmed during the World Defense Show held in Riyadh that the company had submitted its formal application and is working with the Ministry of Investment for approval.
Earlier this week, Boeing’s Saudi unit signed an agreement with the Kingdom’s Bahri Logistics, the national shipping company of Saudi Arabia, to bolster their supply chain activities and enhance its role in supporting services and defence-related products.
After a multi-billion-dollar deal that saw the country’s national carriers announce their intent to purchase up to 121 787 Dreamliners, Boeing has been expanding its operations in the Kingdom.
Saudi Arabia is targeting investments worth $100 billion from public and private sectors by 2030, taking the lead with its civil aviation strategy, as part of Vision 2030.
Construction of new airports, cutting-edge ground services, and a significant boost in air traffic ultimately targets 150 million international visitors by 2030.
The country is on track to launch Riyadh Air in 2025, which is backed by the $800 billion Public Investment Fund, which includes a larger order of Boeing aircrafts.
