A view of the Riyadh skyline. Saudi Arabia, the Arab world's biggest economy, has signed agreements with leading companies in aerospace, technology and finance to bolsters country's position in global economy. Image Credit: Agency

Riyadh: In an effort to boost its position in international value chains, Saudi Arabia, the largest economy in the Arab world, has signed five investment agreements in the fields of aerospace, technology, and finance.

The agreements were inked on Tuesday in Riyadh by the Saudi Ministry of Investment in conjunction with the Future Investment Initiative being held in Riyadh.

The ministry collaborated with regional advanced metals manufacturer Tasnee and plane manufacturer Boeing, based in Arlington, Virginia.

To create investment potential in space tourism and entertainment, it entered into another agreement with the US space training company Orbite.

By 2030, Saudi Arabia wants to localise close to 50% of the spending in the aerospace and defense industries.

Industrial push

A new effort launched by Saudi Arabia aspires to draw international industrial firms to the country and to secure investments totaling 40 billion Saudi riyals ($10.6 billion) in the first two years after the initiative's start.

Saudi Arabia will set aside 10 billion riyals in financial and non-financial incentives for investors under the Global Supply Chain Resilience Initiative (GSCRI), founded by the kingdom's Crown Prince Mohammed bin Salman, the ministry of investment announced in a statement recently.

According to the ministry, "this program intends to strengthen the kingdom of Saudi Arabia's position in the world economy and to offset the impact of global disruptions."

The kingdom's resources, infrastructure, and location will be used by the Global Supply Chain Resilience Initiative to offer increased resilience.

It has previously drawn investment from a range of businesses in the aerospace and defense supply chain, from multinational original equipment manufacturers to small and medium-sized businesses.