Business & Money | Saturday 5 March, 2016 5:11 am |

The Boeing Company enjoys a strong and long-standing relationship with the Kingdom of Saudi Arabia. It is a partnership that began on Feb. 14, 1945, when US President Franklin D. Roosevelt presented a DC-3 Dakota airplane to King Abdulaziz Al-Saud.

This event marked both the beginning of the Boeing relationship with Saudi Arabia and the birth of commercial air travel in the Kingdom. Since then, Boeing has developed and expanded relationships with the Saudi civil and defense authorities as well as with the private sector.

The importance of Saudi Arabia to Boeing was reaffirmed in 1982, when Boeing established Boeing Middle East Limited in Riyadh as a 100 percent Boeing-owned commercially registered company, with full commercial contracting and employee sponsorship rights equal to any other Saudi-owned and registered company.

Ahmed Jazzar was appointed president of Boeing Saudi Arabia in July 2005. Ahmed is based in Riyadh. He is responsible for support to all Boeing business operations in Saudi Arabia. Ahmed is also responsible for communicating and implementing Boeing key messages and its vision and mission in the country.

In 2006, Boeing established another Saudi subsidiary, Boeing International Support Systems — Saudi Arabia Ltd., and received three different investment licenses in 2010 to expand current operations and to execute new projects and business in the Kingdom.

In 2013, the company was renamed Boeing Saudi Arabia Limited to reflect the broad scope of Boeing activities, and today, Boeing Saudi Arabia Limited supports the execution of all Boeing Defense, Space & Security and Boeing Commercial Airplanes programs in Saudi Arabia.

Boeing Commercial Airplanes

After World War II, Saudi Arabia began using the Boeing DC-3 to carry passengers and cargo between Jeddah, Riyadh and Dhahran. The service proved so successful that King Abdulaziz ordered the purchase of two more DC-3s, launching the Kingdom’s aviation sector. The DC-3 airplane formed the foundation of Saudi Arabian Airlines.

Since 1961, Saudia has taken delivery many of Boeing airplanes including 707s, 737s, 747s, 777s, 787-9, MD-11Fs, DC-9s and MD90s. It currently operates many different types of Boeing airplanes, including 747-400/SPs; 777-200ERs; and 777-300ERs, the first of which was delivered to the airline in January 2012. In 2010-2011, Saudia ordered 20 777s and eight 787-9 Dreamliner airplanes. In February 2016, Saudia received three 787-9 in addition to a 777-300 ER.

Aramco Aviation has owned and operated a fleet of Boeing 737-300 and later 737-700 airplanes for years.

In addition, Boeing has delivered many Boeing Business Jets (BBJ) to prominent Saudi businessmen and VIPs and other entities in the Kingdom. The unique Saudi Arabian VIP market was instrumental in launching the larger BBJ 2, BBJ 3 and 787 VIP airplane.

Boeing Defense, Space & Security

The Kingdom is also an important customer for Boeing’s military products. Boeing’s relationship with the Royal Saudi Air Force (RSAF) began in 1978 with the purchase of the Kingdom’s initial F-15C/D fleet, which became the backbone for the air defense of the Kingdom. Later, the RSAF complemented its force with an additional purchase of F-15C/Ds after Desert Storm, followed by F-15S Strike Eagles, to enhance its capabilities with one of the most advanced multirole platforms in the world.

In 1985, Boeing and Saudi Arabian Airlines began a formal program to meet offset obligations by proposing a number of industrial projects to benefit the Kingdom. Boeing proposed 10 concepts and four were eventually adopted for implementation: Alsalam Aircraft Company, Advanced Electronics Company, Aircraft Accessories & Components Company and International Systems Engineering Company.

Currently Boeing holds the largest stake at Alsalam. Boeing and continues to contribute to the expansion of the technical base of Alsalam for both civil and military applications.

In 2014, Mike Kurth was appointed senior vice president for Boeing Defense, Space & Security in Saudi Arabia. Kurth will be responsible for the overall Boeing defense business activity in Saudi Arabia, coordinating with the Saudi Arabia Ministry of Defense and working closely with Boeing Saudi Arabia president Ahmed Jazzar.

Boeing Capital Corporation

Boeing Capital Corporation (BCC) is a wholly owned subsidiary that creates financing solutions for customers purchasing the company’s commercial and defense products. As the company’s investment bank, it works closely with third-party financing sources that provide nearly all of the financing support required by Boeing customers. BCC continually strengthens its presence in the Middle East to meet the high demand for commercial aviation financing.

Industrial and Academic Partnerships

Boeing actively supports the Saudi industrial sectors. The company’s objectives are to support Saudi plans to develop technological capability, create jobs, promote Saudization and create and capture new markets. Additional support to communities are provided by investing in mathematics, science and literacy programs to prepare students to meet future challenges and allow them to realize their dreams.

In 2001, the King Faisal Foundation, together with a team of entrepreneurs, Saudi businesses and multinational corporations, embarked on an ambitious program to establish the first private university in the Kingdom. Alfaisal University now helps students acquire the necessary knowledge to lead in the creation, application and management of technology. Boeing joined this effort as a cofounding member of the university, which began teaching classes in 2008.

In July 2008, Boeing hosted an aerospace supplier’s conference in the Kingdom, pairing US aerospace suppliers with Saudi industrial firms to pursue opportunities to work together. In the years since this initiative, aerospace production contracts have been awarded to multiple Saudi companies for component production.

In 2009, Boeing became a member of the King Abdullah University of Science and Technology (KAUST) Industrial Collaboration Program, which aims to facilitate local and international industrial collaboration.

One initiative was the Boeing Fellowship Program for Saudi Arabia, in which Boeing hosted a number of Saudi students from Alfaisal University in October 2009. Students met with Boeing’s senior executives, engineers, technologists and professionals as part of the program and also joined a network of students and industry professionals while attending sessions at the Boeing Leadership Center in St. Louis, Mo.

In July 2012, the Saudi Emerging Leaders program was the first program of its kind to be held at the Boeing Leadership Center. Boeing sponsored 15 MBA students for a one-week leadership development program, providing them with insights on how to effectively operate in a shifting global economy.

In February 2014, Boeing and Saudi Arabian Airlines Holding Co. signed a broad collaboration agreement to explore areas of cooperation in pilot and aircraft maintenance training, rotorcraft support, management and leadership training, and manufacturing focused on the expansion of local presence and aerospace skill development in the country.

In September 2014, Boeing Research and Technology opened an office at KAUST to enable Boeing’s increased interaction with professors and resident companies interested in joint collaboration and research and development. KAUST is a strategic partner to Boeing. Boeing’s partnership with KAUST is a key tool for research within the Kingdom and a step in partnering with other Saudi organizations to develop research and technology infrastructure and capabilities.

Also, in September 2014, Boeing and King Abdulaziz City for Science and Technology launched the Decision Support Center. In November 2014, top university students from schools across the Kingdom were invited to join Boeing for the Innovation Summit with many workshops led by select regional and international speakers.

In August 2015, Boeing signed an agreement with Saudia Aerospace Engineering Industries (SAEI) and Alsalam Aircraft Company to create the Saudi Rotorcraft Support Center in the Kingdom of Saudi Arabia. The joint venture will have locations in Riyadh and Jeddah providing comprehensive, in-country maintenance repair and overhaul support for Saudi Arabia’s diverse rotorcraft fleet.

Global Corporate Citizenship

Global corporate citizenship remains one of Boeing’s core values. The communities where Boeing operates around the world are among its most important stakeholders. Corporate citizenship is as integral to the company as is its expertise in flight and technology.

Boeing aims to be a facilitator of community change, not simply a source of community funding, through focused corporate giving, employee volunteering, and gift-matching programs. Boeing applies its unique core competencies to its community engagement to deliver sustainable, measurable social development and self-sufficiency. Boeing is an active member of the community in Saudi Arabia focusing on education, health and human services and supporting a number of nonprofit organizations.

Boeing has also been an active participant in the Janadriyah Cultural Heritage Festival for four consecutive years to celebrate Saudi Arabia culture and showcase Boeing products and services.