Business

ALJ Group to Distribute eVTOL Aircraft in Saudi Arabia

Abdul Latif Jameel, an 80-year-old conglomerate of diversified businesses in Saudi Arabia, and the US-based Joby Aviation, a company developing electric air taxis for commercial passenger service, have signed Memorandum of Understanding (MOU) to explore opportunities to establish a distribution agreement in Saudi Arabia for Joby’s four-seater EvTOL aircraft.

This announcement builds upon the renewed economic partnership between the US administration and the Saudi government towards shared innovation and transportation growth.

Potential delivery of up to 200 Joby aircraft and related services valued at approximately $1 billion are expected by the businesses over the coming years. In the long-term, Abdul Latif Jameel and Joby also see potential revenue opportunities across the Middle East.

Abdul Latif Jameel and Joby share complementary long-term visions to revolutionise the future of mobility through transportation services that are cleaner, safer, more efficient and more affordable, helping to improve passenger experiences while simultaneously protecting the planet. In addition, the Jameel family invested in Joby’s Series C funding round, led by Toyota Motor Corporation in 2020.

The direct sale of aircraft through businesses such as Abdul Latif Jameel form one pillar of Joby’s commercialisation strategy. Additionally, Joby will directly own and operate its aircraft and services in certain markets, like the US, and partner for similar operations in other markets, such as Japan.

The FAA has a working agreement with Saudi Arabia’s General Authority of Civil Aviation (GACA) that sets a framework for regulatory collaboration around certifying eVTOL aircraft.

The company is aiming to achieve FAA type certification in time to start deliveries and launch commercial services in 2026, with Dubai set to host the first air taxi network using the Joby aircraft.

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Building Efficient Future

JoeBen Bevirt, Founder and CEO of Joby Aviation, said that this collaboration is expected to bring America’s leadership in electric air mobility to the world.

“Together with Abdul Latif Jameel, we are not just imagining a cleaner, safer, more efficient future, we are building it. And there is no better partner to help unlock the extraordinary opportunity for air travel in the region,” Bevirt said.

Hassan Jameel, Vice Chairman of Abdul Latif Jameel Saudi Arabia, said that the Kingdom was transitioning toward a new era of mobility, one that is on-demand, shared, connected, and sustainable.

He added: “eVTOL is an exciting and important component of this. We are looking forward to collaborating with Joby to support the transformation of the Kingdom’s mobility sector. This collaboration also comes as Abdul Latif Jameel Motors marks 70 years of distributing Toyota in Saudi Arabia — a strategic investor in Joby.”

Joby’s collaboration with Abdul Latif Jameel will initially focus on Saudi Arabia, where the company has an extensive presence, network and deep operational experience.

The two companies will work together to explore distribution and sales collaborations, the launch of local air taxi services, including the establishment of aftermarket services such as MRO (Maintenance, Repair, and Overhaul), and pilot training.

Joby’s piloted, all-electric aircraft is designed to carry four passengers at speeds of up to 200 mph, offering high-speed mobility with a fraction of the noise produced by helicopters and zero operating emissions. The business plans to carry its first passengers in Dubai in 2026.

Given the importance of mobility to Saudi Arabia’s urban transformation, the collaboration aims to drive socio-economic growth in the Kingdom and create employment opportunities for Saudi nationals, in line with Vision 2030.

It may be recalled that Joby signed a deal with Saudi Aramco’s Makumalah subsidiary that called for it to buy an unspecified number of eVTOL aircraft last year. Joby group, which already operates multiple helicopters and fixed wing aircraft, said that it would help to develop plans for operations in the country.

Global Business Magazine

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