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Saudi Arabia launches aerospace cluster to drive economic diversification

The project aims to localize advanced aviation technologies and fortify the sector's supply chains.

Saudi Arabia launches aerospace cluster to drive economic diversification
[Source photo: Krishna Prasad/Fast Company Middle East]

The cluster is expected to play a crucial role in Saudi Arabia’s broader strategy to diversify its economy and position itself as a key player in the global aerospace industry. By fostering innovation and manufacturing capabilities, the initiative aims to reduce reliance on imports, create high-skilled jobs, and strengthen the Kingdom’s aviation supply chains.

MODON’s plan includes offering incentives to attract international and regional aerospace companies, with a focus on developing advanced manufacturing, maintenance, repair, and overhaul (MRO) facilities. The project aligns with Saudi Vision 2030’s goal of transforming the Kingdom into a global logistics hub, leveraging its strategic location and expanding aviation infrastructure.

The development supports Saudi Arabia’s National Industrial Strategy, Aviation Strategy, and Tourism Strategy, all central to the Kingdom’s Vision 2030. The goal is to establish Saudi Arabia as a leading air transport hub, capable of handling 30 million passengers and 2 million tonnes of air cargo annually.

Beyond aviation, MODON is also making strides in other industrial sectors. Recently, the authority launched what is claimed to be the world’s largest food industry cluster, spanning 11 million square meters in Jeddah’s industrial zones, reinforcing the Kingdom’s commitment to food security and industrial diversification.

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