Saudi Arabia-country sourcing roadmap: Airbus Group

Abstract

The combination of university and government based research and technical capacities combined with an industrial focus on technical applications provide a substantial foundation for further development of the space and aeronautical sector in the Kingdom. To add to this, SABIC’s Innovative Plastics Unit, MA'ADEN’ and Alcoa joint integrated aluminium complex supported by the offset policy with a expected CAGR of 3.9% and an appetite for diversification is reshaping the industry fast. The kingdom has capacity and capability in Engineering Services, Aero structures, detail parts IT and System & Equipment. Sourcing from Saudi Arabia is mainly driven by Market Access and Rare resources. Value for cost also seems to be a strong criteria for Airbus Group sourcing. Competitive electricity cost, huge government spending on industries, cheap foreign labour and huge availability of raw materials makes Saudi Arabia a lucrative sourcing market.