Aeria Gloris

The aerospace sector is experiencing the same drive to Saudization seen in other areas of the economy. In many ways, the Kingdom is perfectly placed to achieve both the goal of Saudizing their workforce and maintaining the highest standards of excellence in aerospace. Nader Ahmed Khalawi, CEO of Saudia Aerospace Engineering Industries (SAEI)—the largest maintenance organization in the Middle East—describes some of the nation’s advantages as follows; “There is huge government expenditure, a massive emphasis on education, a large abundance of engineers, 22 excellent technical schools, and some 150,000 Saudis working outside the Kingdom.” In human resource terms, aerospace is already a fertile sector for home-trained talent.

International links, particularly with the US and Britain, remain strong. A new and important UK-Saudi cooperation program, known as “Project Salaam” involves Britain’s BAE Systems investing in local Saudi companies. Saudi businesses account for about $3 billion of BAE’s revenue every year, and BAE has committed to invest more heavily in local Saudi companies, develop an industrial technology transfer plan, and train thousands of Saudi nationals to staff its operations in the Kingdom. BAE currently employs about 4,600 personnel in Saudi Arabia, and as of 2014, it is expanding its local presence even further. One of the main effects of this move will be that BAE Systems and Riyadh Wings Aviation Academy will bring together their respective stakes in several local companies that specialize in training, maintenance, aircraft electronics, and IT systems engineering. Such alliances will help Saudi aerospace companies continue to develop their own skilled workforces. Azzam M. J. Addas, CEO of Aircraft Component and Accessories Co. (AACC), describes the current environment as one where “We have to source aviation mechanics from aboard. There is a program set up by Saudi Arabian Airlines through Prince Sultan Academy for aviation training, we hope that it will produce more graduates and prepared young Saudis.”

As a natural consequence of their longstanding relationships within Saudi aerospace, major American companies are also deeply involved in this movement toward Saudization in their operations. Lockheed Martin is heavily invested in the new King Abdulaziz City for Science and Technology (KACST), and is also integrating newly trained Saudi nationals into its existing programs of C-130 heavy transport aircraft upkeep, air traffic control technology, and established missile defense and aerospace IT systems. Boeing has begun delivery on a major aircraft deal valued at $29 billion for the F-15SA (Saudi Advanced) fighter; this agreement includes the production of 84 new aircraft and the modernization of 70 existing aircraft as well as munitions, spare parts, training, maintenance, and logistics. As part of this series of contracts and agreements, approximately 5,500 Saudi personnel will receive training from US forces through to 2019. According to Majid A. Al-Zoghaibi, Acting CEO of Middle East Propulsion Company (MEPC), these deals with the US simply extend what is already a fait accompli: “Our strategy is to use our engine experience for long-term planning; for example, we do our analysis and communicate with customers to anticipate where the gap in the industry will be after five or 10 years.” Boeing has also announced plans to build a 1,000-person aviation training facility, which will also allow for more technology and skills transfer between US and Saudi personnel. In the skies as well as on the ground, Saudi Arabia maintains its string traditional alliances, even as it places more of its own nationals in positions of greater authority.