Deal Worth $37bn Signed Between Saudi Arabia and Boeing
The deal will see Saudi Arabia acquire 121 Boeing 787 Dreamliner aircraft equipped with General Electric engines if it exercises an option to buy 43 planes after the initial 78
The recent “landmark deals” between Saudi Arabia and Boeing worth $37 billion were welcomed by The White House.
“Our administration looks forward to working with Saudi Arabia and all partners in the Middle East to support a more prosperous, secure, and integrated region, which ultimately benefits the American people,” White House Press Secretary Karine Jean-Pierre.
President Biden ran for office determined to make the United States the global leader once again in manufacturing. Last month, Boeing completed its second-largest commercial transaction in history for over 200 aircraft to support an expansion of Air India’s commercial fleet.
The deal will see Saudi Arabia acquire 121 Boeing 787 Dreamliner aircraft equipped with General Electric engines if it exercises an option to buy 43 planes after the initial 78.
The White House lauded the deal, one of Boeing’s two largest transactions ever.
If all 121 aircraft are purchased, the deal will support over one million American jobs across 44 states, according to the White House.
“The most recent deals with Saudi Arabia alone support more than 140,000 American jobs, many of which do not require a four-year college degree,” Jean-Pierre said.
A chunk of the Boeing planes will go to Saudi Arabia’s newly launched airline, Riyadh Air. Jean-Pierre said the US was pleased that the deal between Riyadh and Boeing was concluded “after years of discussions and intensive negotiations over recent months.”
“This partnership is another milestone in eight decades of cooperation between Saudi Arabia and American industry,” she said. “Our administration looks forward to working with Saudi Arabia and all partners in the Middle East to support a more prosperous, secure, and integrated region, which ultimately benefits the American people.”
Saudi Ambassador to the US Princess Reema bint Bandar welcomed the deal reflected the enduring strategic partnership between both countries. “Not long after the founding of the modern Saudi state, it was American companies that helped build our young economy,” she said in a statement. “And American companies will continue to be an important part of our bold future.”
As for Riyadh Air and expanded SAUDIA, the current flagship airline, Princess Reema said it was part of the Saudi strategy to diversify its economy, lead new key sectors, and become a global hub for transportation, tourism, cargo and logistics.
“This announcement is part of the Vision2030 agenda, driven by Crown Prince Mohammed bin Salman’s vision for a vibrant and diversified Saudi economy. It is a blueprint for economic and social reform that is opening Saudi Arabia up to the world,” she said.
Riyadh Air is expected to contribute $20 billion in non-oil GDP and create over 200,000 jobs in Saudi Arabia.