Saudi Aerospace Solutions (SAS) has signed an agreement to purchase 100 electric helicopters from the Chinese company Vertaxi. This reflects Saudi Arabia’s commitment to strengthening its technological partnership with China in the field of future aviation. Saudi Arabian Airlines confirmed its intention to use these small, electric-powered aircraft, acquired through the “Vertaxi” deal, to transport pilgrims between Mecca and Jeddah, as well as visitors to major sporting events in Riyadh and other tourist destinations. The low-altitude economy (LAE), represented by “Vertaxi,” is a strategic and emerging sector in China, combining advanced manufacturing with new business models such as smart cities. SAS’s vision is to establish Saudi Arabia as a regional hub for the LEA by 2030.
Through this deal with China’s Vertaxi and Saudi Aerospace Solutions Group, it continues to pursue its ambitious goals of connecting the world to Saudi Arabia. This includes offering several advantages, such as linking multiple destinations via this advanced Chinese electric aircraft and supporting them with air routes between the major airports where the Saudi group operates. This initiative aligns with Saudi Arabia’s vision of economic diversification and the shift towards smart transportation models that could impact future technological and regional balances. The 8th China International Import Expo witnessed the signing of an agreement between Saudi Aerospace Solutions Group and Vertaxi, a Chinese company specializing in electric vertical takeoff and landing (eVTOL) aircraft. Saudi Aerospace Solutions Group signed a letter of intent to purchase 100 Vertaxi M1 electric cargo VTOL aircraft. The electric aircraft included in the deal are among the first fully electric vertical takeoff and landing (eVTOL) vehicles.
These aircraft are distinguished by their ability to take off and land vertically, eliminating the need for traditional airports. They can travel up to 175 km at speeds of up to 260 km/h, offering significant time savings for individual passengers compared to other options, and can accommodate up to six passengers.
Through this deal with China, Saudi Arabia, officially through the Saudi Solutions Group, aims to enter a new era and achieve leadership in the aviation and air transport sector in the region. The Saudi electric aircraft deal with China will provide unprecedented solutions and new air routes to connect pilgrims to Mecca during the Hajj and Umrah seasons. It will also enable visitors to Saudi Arabia to quickly access sporting and entertainment events and tourist sites, in addition to connecting the Kingdom’s mega-projects within the framework of Saudi Vision 2030 with distinguished air services that meet the future aspirations of Saudis. Furthermore, this deal achieves a highly important objective for Saudi Arabia, which is continuing the implementation of initiatives supporting sustainability and environmental conservation (electric aircraft), which are characterized by their reduced carbon dioxide emissions. This Saudi deal with China will contribute to providing more flights and reducing travel times by up to 90%, including to long-distance tourist destinations. It will also offer effective transportation solutions in areas congested with pilgrims, travelers, and traffic jams. Furthermore, this Saudi-Chinese agreement will contribute to reducing traffic congestion, saving time, expanding the range of premium services for VIP guests visiting Saudi Arabia, and providing a seamless and luxurious travel experience. This will also contribute to boosting tourism and business within the Kingdom.
Saudi Arabia is relying on the air transport electrification deal with China as a practical path to decarbonizing this vital and important sector, which is currently characterized by high emissions and environmental damage. Currently, environmentally friendly and low-carbon-emission electric aircraft represent a very small percentage of the global aviation fleet. Saudi Solutions Company will collaborate with the Chinese company Vertaxi to develop local applications for these aircraft. Electric vertical takeoff and landing (eVTOL) cargo services in Saudi Arabia, including low-level logistics, marine power transport, and security inspection.
This Saudi deal with China comes at a time when China is accelerating its plans to strengthen its global digital presence. Tencent (the Chinese giant) is also simultaneously taking new steps in the Saudi market through cloud investments, in line with the goals of the Kingdom’s Vision 2030 for digital transformation. Dawson Tong, senior executive vice president of Tencent and CEO of its Cloud and Smart Industries Group, confirmed that “the new data center in the Saudi capital, Riyadh, represents a significant growth opportunity,” explaining that the Chinese partnership with Saudi Arabia is nearing completion of its final launch stages. He officially confirmed that “we already serve many Chinese companies that are increasing their investments in Saudi Arabia, and a number of our partners have lined up to benefit from the new data center in Riyadh, which allows us to expand not only within the Kingdom but throughout the entire region.”
In this context, Saudi and Chinese companies signed 34 investment agreements on the sidelines of Chinese President Xi Jinping’s visit to Saudi Arabia in December 2022. These Saudi-Chinese agreements covered various sectors, including green energy and green hydrogen, solar photovoltaic energy, information technology, transportation and logistics, medical industries, housing, and construction, among others. Saudi Arabia’s Vision 2030 offers diverse investment opportunities in partnership with China across multiple sectors as part of the Saudi government’s efforts to diversify the economy away from crude oil, which is currently the Kingdom’s primary source of income.
In the future industries sector, the Saudi Business Industries Company (Sahl Al-Aamal) signed a cooperation agreement with two Chinese companies: China New Energy and Eurasia. The aim is to establish a specialized electric vehicle manufacturing plant in Saudi Arabia, with investments totaling one billion Saudi riyals. This new Saudi-Chinese project also aims to support Saudi Arabia’s drive towards sustainable transportation, increase local content, and create quality job opportunities through partnership with Chinese companies.
These Saudi steps towards partnership and cooperation with China come within the framework of the “Vision 100 strategy” to expand its international partnerships and enhance its ability to transfer advanced technologies and knowledge to the Saudi market, thus contributing to driving economic development and achieving sustainability.
From the preceding analysis, we conclude that the Saudi-Chinese partnership, through the helicopter deal with the Chinese company Vertaxi and others, promotes environmentally friendly industrial innovation. With the joint Saudi-Chinese effort to strengthen partnership in artificial intelligence and petrochemicals to develop sustainable and environmentally friendly technologies, Saudi Arabia has affirmed its readiness to welcome Chinese investments through the development of industrial cities, aiming to increase the number of its factories to more than 26,000 by 2030 through cooperation with China.