Saudi Arabia has begun courting Archer Aviation, after the electric air taxi company announced a partnership with its economic and regional rival, the United Arab Emirates.
Competition among countries to become the region’s main hub is driving significant spending, which benefits new companies like Archer. Last month, Archer signed an agreement with the Abu Dhabi Investment Authority for a multimillion-dollar investment to accelerate planned commercial air taxi operations in the UAE.
“Since we made our first announcements in the UAE, it has generated interest across the region and particularly in Saudi Arabia,” said Nikhil Goel, Archer’s Chief Commercial Officer.
Goel said Archer is in talks with Saudi Arabia about potential partnerships in Riyadh, Jeddah and some of the kingdom’s multibillion-dollar projects. Archer Aviation, backed by Stellantis ( STLAM.MI ), the parent company of Chrysler, Boeing ( BA.N ) and United Airlines ( UAL.O ), is developing an electric vertical takeoff and landing (eVTOL) aircraft touted as the future of urban air mobility .
The region’s deep pockets of oil make it a promising frontier for the eVTOL industry, which must also overcome certification hurdles to secure its future. As part of its plan to wean itself off oil, Riyadh is investing billions in its aviation industry to become a regional hub.
On Tuesday, it announced an order for 105 Airbus narrow-body jets, launched a new airline, Riyadh Air, last year and announced plans to build a huge airport with six runways in 2022.
Dubai, a longtime aviation hub, announced its own major order and plans to increase capacity at the International Dubai Airport to 120 million passengers per year by 2026, from today’s 100 million.
The competition is creating an aviation boom that Mr Goel says will benefit new companies like Archers. The eVTOL industry is growing rapidly and promises to redefine urban transportation.
The United States Federal Aviation Administration (FAA) has given Archer the green light to flight test its “Maker” demonstrator aircraft in 2021.
The Gulf offers the possibility of a quick launch, although Mr Goel said all safety requirements would be strictly adhered to.
NEOM, the kingdom’s flagship project, has already launched a joint venture with Volocopter in 2021 and will invest $175 million in the company in 2022.