In an exclusive development reflecting the strengthening ties between Saudi Arabia and China, Saudia Group has extended an offer to Shanghai-based plane maker Comac to establish an assembly line in Jeddah.
This move aligns with the kingdom’s strategic push to bolster its nascent manufacturing industry as part of its broader economic diversification efforts.
Talks to Explore C919 Specifications
In tandem with the assembly line proposal, Saudia Airlines is engaged in discussions with Comac to gain deeper insights into the specifications and performance of the C919 narrow-body jet. Saudia spokesman Abdullah Alshahrani shared these details with The National during the Future Aviation Forum in Riyadh.
Earlier this week, Comac chairman He Dongfeng visited the headquarters of the Saudia Group in Jeddah. His visit included a tour of Saudia Technic’s MRO Village, a sprawling maintenance, repair, and overhaul complex covering approximately one million square meters. Set for completion in 2025, this facility is expected to house manufacturing operations for global aerospace companies.
“We presented to him the manufacturing opportunities on this large site … he showed interest in the potential opportunity for Comac to be present in the Middle East. These are all discussions and there are no decisions made,” Mr. Alshahrani said.
Why Jeddah?
The rationale for Comac to consider setting up a plant in a region where it currently does not sell aircraft is strategic. Establishing a presence in the Middle East’s burgeoning aviation sector would allow Comac to diversify its manufacturing base and tap into new markets.
The ongoing discussions follow a high-level Saudi civil aviation delegation’s visit to Comac’s Shanghai headquarters in February. This visit included a tour of the production facilities for the C919 and ARJ21 aircraft, underscoring the mutual interest in potential collaborations.
Saudi Arabia’s Economic Diversification Goals
Saudi Arabia, the world’s largest oil exporter, is on a mission to diversify its economy away from hydrocarbons. This includes growing its domestic manufacturing sector to create jobs, attract foreign investment, and build a robust private sector. Partnering with international companies is a key strategy in this endeavour, aimed at sharing technical knowledge, developing local capabilities, and opening production sites within the kingdom.
Saudia’s Exploration of Comac Jets
In a related development, Saudia Group recently placed its largest-ever order for 105 Airbus narrow-body jets. Despite this, the group remains open to exploring a range of aircraft options. Mr. Alshahrani confirmed that Saudia is in discussions with Comac to understand more about the C919’s specifications and performance.
“Are we interested in knowing the aircraft, the flight control, the specifications? Yes. We want to know more about its [performance] record because only a small number of planes are flying at the moment. This is not just with Comac, even with planes by other manufacturers, we would like to have a menu of aircraft options that we can consider,” he stated.
Comac’s Market Position and Future Plans
Comac is positioning the C919 as a viable alternative to the Airbus A320neo and Boeing’s 737 Max, particularly as these two manufacturers struggle to meet rising demand for new aircraft. However, Comac’s market penetration has so far been limited, with most orders coming from Chinese airlines and plane lessors.
Mr. Alshahrani expressed optimism about Comac’s seriousness in producing reliable aircraft and noted the manufacturer’s interest in the region. A Saudia Group delegation plans to visit Comac’s Shanghai plant later this year for further meetings and a flight demonstration.
Enhancing Saudi-China Relations
The aviation talks are part of a broader trend of deepening political and economic ties between Saudi Arabia and China. This relationship fosters trust in products and encourages market openness between the two nations.
If Comac decides to set up an assembly line in Saudi Arabia, it would receive significant support from the Ministry of Investment, aligning with national efforts to localize aircraft production. “All doors will be open to Comac to have a manufacturing presence in the kingdom,” Mr. Alshahrani assured.
During the Future Aviation Forum, Mr. Dongfeng emphasized Comac’s commitment to enhancing global connectivity and diversity, contributing to Saudi Arabia’s transportation development. He outlined how Comac’s C919 could serve the kingdom’s domestic market, connect it with neighboring regions, and help establish it as a global air transport hub.
Ambitious Aviation and Tourism Goals
Saudi Arabia has set ambitious targets for its aviation and tourism sectors, aiming to transport 330 million passengers annually, increase destinations to 250, and attract 150 million tourists by 2030.
Strengthening ties with China is strategic, with a focus on increasing Chinese tourist numbers to between four million and five million by 2030.
As Saudi Arabia continues its push towards economic diversification, the potential collaboration with Comac could mark a significant milestone in the kingdom’s aviation and manufacturing sectors.
This partnership highlights the growing economic and political bonds between Saudi Arabia and China, setting the stage for a dynamic future in the global aviation industry.
