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Saudi Arabia’s New Aviation Industrial City

A major leap in the Kingdom's aviation sector

by Huda Marshad
March 4, 2025
in Industry
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Saudi Arabia has launched its first aviation industrial city in Jeddah, covering an area of 1.2 million square meters within MODON Oasis. This milestone, announced at the Aviation Industry Forum under the auspices of Minister of Industry and Mineral Resources, His Excellency Bandar Alkhorayef, signifies a major leap in the Kingdom’s aviation sector.

The city is a collaborative effort between the Ministry of Industry and Mineral Resources, the General Authority of Civil Aviation (GACA), and the Saudi Authority for Industrial Cities and Technology Zones (MODON). It aims to foster advanced aviation technologies and enhance supply chains within the sector. Located strategically near King Abdulaziz International Airport and Jeddah Islamic Port, it presents a favorable environment for aerospace manufacturing investments.

Investment Opportunities and Facilities

The site offers ready-built factories tailored to accommodate aviation companies, promoting the localization of this crucial industry. During the forum, new industrial licenses for maintenance, repair, and overhaul (MRO) services were issued in partnership with GACA and the General Authority for Military Industries (GAMI). These licenses encompass aircraft and drone maintenance, navigational and electronic systems servicing, and complete aircraft overhaul operations.

The first MRO license was awarded to the Middle East Propulsion Company (MEPC), followed by a license to Saudia Aerospace Engineering Industries (SAEI). These developments mark a significant stride in Saudi Arabia’s efforts to bolster its aviation capabilities and attract international stakeholders.

Strategic Goals and National Vision

Vice Minister of Industry and Mineral Resources for Industrial Affairs, Eng. Khalil bin Salamah, highlighted the project’s strategic significance, emphasizing its exclusive focus on aviation-related industries. The initiative supports Saudi Arabia’s National Industrial Strategy, Aviation Strategy, and Tourism Strategy, aiming to establish the Kingdom as a leading global aviation hub. The overarching objective is to transform the nation into a center for air transport, handling 30 million passengers and 2 million tonnes of air cargo annually, according to the Saudi Press Agency.

Tags: Aerospace InvestmentsAviationIndustrial CityMODON OasisSaudi Arabia
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