Vertical Aerospace (NYSE: EVTL) has taken a major step toward advancing Advanced Air Mobility (AAM) in the Middle East, signing a strategic Memorandum of Understanding (MoU) with Saudi industrial leader AHQ Group and the Saudi National Industrial Development Centre (NIDC). The deal aims to explore development, manufacturing and deployment of electric air mobility solutions — potentially establishing the Kingdom as a regional hub for advanced electric flight. (Investing.com)
Strategic Collaboration Under Vision 2030
The MoU, signed in Riyadh, outlines a framework for cooperation on industrial development, commercial deployment, and investment opportunities related to AAM across the Kingdom — a program aligned with Saudi Arabia’s Vision 2030 economic transformation plan. The vision seeks to diversify the economy, build high-value industries, attract cutting-edge technology, and create skilled jobs.
Under the agreement:
- Manufacturing opportunities will be evaluated to determine how Saudi Arabia can support local production of electric aircraft and related technologies.
- Commercial eVTOL operations — including potential routes, services and infrastructure — will be assessed.
- Incentive frameworks and investment structures that could support the growth of a scalable AAM ecosystem will be explored.
Positioning Saudi Arabia as a Regional AAM Hub
Stuart Simpson, CEO of Vertical Aerospace, described Saudi Arabia as “one of the most strategically important future markets for Advanced Air Mobility,” highlighting the Kingdom’s ambition to develop world-class aerospace industrial capabilities. He noted that partnering with AHQ Group and the NIDC combines industrial expertise, capital strength and shared strategic vision to help position the region at the forefront of this emerging sector.
AHQ Group — a major Saudi industrial conglomerate — is expected to help assess the commercial and infrastructure needs required to build a sustainable AAM industry. The NIDC, part of the Ministry of Industry and Mineral Resources, will focus on high-value manufacturing, localization, investment pathways, and incentive alignment with national economic objectives.
Electric Aircraft Development and Valo Integration
A central focus of the collaboration is Vertical Aerospace’s Valo electric vertical take-off and landing (eVTOL) aircraft — a four-passenger piloted craft engineered for zero operating emissions and designed to cruise up to 160 km (approximately 100 miles) at speeds of 240 km/h (about 150 mph). The aircraft also features advanced thermal and battery systems optimized for hot, high-demand environments, making it particularly well-suited to conditions seen in Saudi Arabia and the broader Gulf region.
In addition to the fully electric variant, Vertical is developing a hybrid-electric version of Valo that could offer increased range and operational flexibility — a key factor for broad deployment in urban, regional, and utility fleet operations.
Market Potential and Broader Regional Momentum
Saudi Arabia represents one of the most attractive emerging markets globally for AAM, with the potential to support more than 1,000 electric aircraft operating across passenger and cargo missions if a commercial ecosystem takes shape. By establishing an industrial base early, the Kingdom could gain a first-mover advantage in a space increasingly targeted by aerospace innovators.
The MoU also reflects broader regional interest in electric air taxis and urban air mobility — with other developers such as Archer Aviation and Lilium engaging with Gulf countries on related initiatives, indicating competitive interest in electric aviation adoption across the Middle East.
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