https://arab.news/znz8v
RIYADH: A satellite manufacturing factory is set to be built in Saudi Arabia after an SR1 billion ($266.6 million) agreement was reached with a Hong Kong-based space industry firm.
As the Kingdom solidifies its position as a prime manufacturing hub for foreign companies, ASPACE will gradually scale its investment in alignment with the project’s phases, including research and development, component manufacturing, subsystems, and eventually assembling advanced satellites.
This deal will see ASPACE leverage the region’s strategic geographical location to enhance space capabilities by investing in advanced satellites, which constitute 70 percent of the global space market.
The chairman of the Saudi Space Agency, Abdullah Al-Swaha said: “This investment represents a significant stride in augmenting the Kingdom’s competitiveness and establishing it as a regional hub for magnetizing space investments as well as cutting-edge technologies in this rapidly growing sector,” he said,
He also underscored that the Kingdom’s space development, backed by its visionary leadership, plays a pivotal role in supporting and diversifying the economy.
Sun FengQuan, ASPACE’s co-chairman and CEO was quoted by South China Morning Post as saying: “We will explore the (possibility of) manufacturing satellites and related parts in Saudi Arabia.”
He said that they will have to jointly develop the company with the Saudi government for the next stage, adding that a number of Saudi officials have visited his company’s facilities in Tseung Kwan O in Hong Kong.
Meanwhile, Saudi Investment Minister Khalid Al-Falih pointed out that awarding ASpace the first investment license in the satellite sector is a cornerstone for associated investments in the Kingdom, given the substantial global prospects this field offers.
“This move will unquestionably incentivize numerous companies to invest in the Kingdom, which is presently witnessing exceptional growth and advancements in diverse domains.
“The satellite industry is undergoing significant developments that will further enhance attractiveness and global competitiveness," Al-Falih said.
SSA CEO Mohammed bin Saud Al-Tamimi noted that ASPACE’s investment in the Kingdom marks a substantial milestone for the company. He also expressed anticipation of a positive impact on the space industry within the Kingdom and the enhancement of the overall satellite manufacturing base in the region.