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The US plane manufacturer Boeing Co. has confirmed its Middle East headquarters will be established in Riyadh, weeks after the January 1 deadline set by Saudi Arabia for global firms to set up regional bases in the kingdom or risk losing out on lucrative government contracts.
Bloomberg first reported the development, quoting Boeing Saudi President Asaad Aljomoai on the sidelines of the World Defense Show held in Riyadh this week, who further revealed a license application has already been submitted and the company was working the Saudi’s Ministry of Investment for approval.
It remains unclear how this development could affect operations at other offices Boeing has in the region, including Dubai, Abu Dhabi, Kuwait, aside from one in Riyadh.
Earlier this week, Boeing’s Saudi unit also signed an agreement with kingdom’s Bahri Logistics to bolster the latter’s supply chain activities and enhance its role in supporting services and defence-related products.
Boeing has been expanding its operations in Saudi Arabia following last year’s multi-billion-dollar deal that saw the country’s national carriers announce their intent to purchase up to 121 787 Dreamliners, which was one of the largest commercial order by value in the plane manufacturer’s history.
Saudi Arabia has been taking the lead with its civil aviation strategy, which is targeting investments worth $100 billion by the public and private sectors by 2030 as part of its master plan for the kingdom.
The country’s General Authority of Civil Aviation (GACA) announced in October that would include the construction of new airports, cutting-edge ground services and a significant boost in air traffic.
Saudi Arabia is also on track to launch its new airline, Riyadh Air, in 2025, which is being launched by the country’s sovereign-backed $800 billion Public Investment Fund (PIF), which includes a large Boeing aircraft order.
The recent investments are a part of Saudi’s Vision 2030 strategy, targeting 150 million international visitors in six years.
(Writing by Bindu Rai, editing by Brinda Darasha)
