Boeing and Saudi Arabia have a strong partnership Saudi Arabia that goes beyond defense and commercial products at a glance By Eric Fetters-Walp Official name: Kingdom of Saudi Arabia The discovery of huge oil reserves estab- But the relationship between Boeing and Location: On the Arabian Peninsula lished Saudi Arabia as an economic force Saudi Arabia isn’t limited to buying aircraft. between the Red Sea and the Arabian in the 20th century. In the 21st century, the Boeing has invested in the aviation Gulf; neighbors include Yemen, the nation is counting on technology to do the industry, technology research and education United Arab Emirates, Qatar, Bahrain, Oman, Kuwait, Iraq and Jordan same, and Boeing is certain to be involved. in the nation for nearly 30 years. In 1982, “I don’t believe Boeing’s ever been in a Boeing established Boeing Middle East Area: 784,000 square miles (2 million square kilometers), one-fifth the size of position with the kingdom that’s better than Limited, or BMEL, in Saudi Arabia’s capital the continental United States it is now,” said Ahmed Jazzar, president of of Riyadh, giving the enterprise full commer- Boeing Saudi Arabia. “With the economy cial contracting and employee sponsorship Population: More than 27 million people booming, opportunities are opening up.” rights equal to any other Saudi-owned and In 2010, Saudi Arabia signaled its intent registered company. Official language: Arabic to the U.S. government to proceed with the A few years later, when Boeing won a Capital: Riyadh single largest acquisition of defense products large contract to provide Saudi Arabia with Other key cities: Jeddah, Mecca, in Boeing’s history. The purchase includes Airborne Warning and Control System, or Medina and Dammam 84 new F-15 jet fighters, upgrades to 72 of AWACS, aircraft and other ground-based Gross domestic product, 2010 Saudi Arabia’s existing F-15s, 70 Apache defenses, it launched a large industrial estimate: $622.5 billion (U.S. dollars) “ Boeing has a helicopters and 36 AH-6i light attack helicop- participation program that created Alsalam GDP growth rate, 2010 estimate: golden name ters. Other defense products and services Aircraft Co., a profitable modification, repair 3.8 percent also are included in the proposed deal. and overhaul business. Largest export partners: Japan, in Saudi Arabia. Boeing continues to work closely with “The confidence that Saudi Arabia has South Korea, the United States, the U.S. government and the Kingdom of put in Boeing, on both the commercial side China, India It is a company Saudi Arabia on these programs, which are and the defense side, is really significant,” Military spending as part of GDP, that’s regarded designed to strengthen security in the region. said Shep Hill, president of Boeing Interna- 2005: 10 percent The nation’s flag carrier airline also tional and senior vice president of Business Sources: U.S. government to be at the has ordered eight 787 Dreamliners and Development and Strategy. “And over time, 22 777s and will take delivery of some of we’ve increased our presence in Saudi Arabia cutting edge them this year. to the point where we have strong partner- PHOTO: The skyline of Riyadh, Saudi Arabia’s capital city, with the Kingdom of technology.” Those new orders build on a solid ships there, from Alsalam to the universities.” Centre—the nation’s tallest building foundation dating back decades. The Boeing is a founding member of at almost 1,000 feet (300 meters)—in – Ahmed Jazzar, president of kingdom’s fleet of older F-15s and its Alfaisal University, the first private university the foreground. Boeing Saudi Arabia’s Boeing Saudi Arabia Apache helicopters are a crucial part of in Saudi Arabia. Since it began teaching headquarters is located in the city. PHOTO: Associated PRESS Saudi Arabia’s defense forces. classes in 2008, the school has attracted SHUTTERSTOCK Over the past 50 years, Boeing Commer- world-class teaching and research talent in cial Airplanes has delivered 138 jetliners to engineering, science, business and medi- Saudi customers. The nation also has been cine. At the newly established King Abdullah one of the most active markets for Boeing University of Science and Technology, Boeing Business Jets and other VIP airplanes. is a member of the public institution’s (Text continues on Page 34) NEW30 BOEING FRONTIERS HORIZONSJULY 2011 31 With strong ties to local universities, Boeing helps individuals and Boeing is growing its opportunities communities throughout in Saudi Arabia Saudi Arabia Saudi Arabia isn’t shy in its ambition to become a world- Early childhood education, training for families that class hub for technology. At the new King Abdullah University have autistic children and increasing awareness on breast of Science and Technology on the nation’s western coast, cancer are among the important causes in Saudi Arabia state-of-the-art laboratories and research equipment are receiving support from Boeing’s Global Corporate drawing researchers from far and wide. Citizenship organization. In this case, starting an initiative from scratch is proving to Boeing helps a number of organizations across the have benefits, said Pete Hoffman, director of Global Research nation, including the Saudi Autistic Society’s early intervention and Development, Boeing Research & Technology. program, which teaches caregivers how to recognize autistic Describing the university’s newly installed electron microscopes, symptoms in children; the Zahra Breast Cancer Society; and magnetic resonating machines and more, he said: “The infrastruc- the Early Childhood Center/Gulf Women Association, which ture is definitely a draw for bringing in great minds from around the trains teachers for quality early child education programs. world. [The school is] successfully attracting world-renowned Omar Shesha, Boeing International and Global Corporate scientists who are experts in key areas of interest to the kingdom.” Citizenship leader in Saudi Arabia, said the company’s giving In a country where relationships are valued, Boeing has grown is focused on critical education, health and human services strong ties to a number of universities and industrial businesses needs there. to help train new generations in engineering and aerospace. “Our contribution to local nongovernmental organizations “Our partnerships in Saudi Arabia are typical, I think, of those in the kingdom is part of a commitment to help individuals we establish all over the world,” Hoffman explained. “They’re driven and communities deal with issues and needs,” Shesha said. by the opportunity to tap into the best technology, to co-invest and “These organizations in Saudi Arabia are making great efforts to establish a presence in key markets.” through well-designed programs, and we are delighted to That’s what Boeing did more than 20 years ago when it helped take part in these initiatives.” launch Alsalam Aircraft Co., a joint venture between Boeing, Global Corporate Citizenship also supports the Learning Saudi Arabian Airlines, Saudi Advanced Industries Corp., Gulf Disability Program at Prince Salman Center for Disability Investment Corp. and National Investment Corp. Research, which conducts research into improving language Alsalam provides modification, repair and overhaul services for proficiency among disabled Arabic speakers. Boeing has commercial and military aircraft as well as completion installations worked closely with the Hope Center for Exceptional Needs, for VIP aircraft, technical support, manufacturing and training. the National Home Healthcare Foundation, the First Welfare Boeing owns half of the business, which has 3,500 employees Women’s Society, Gulf Women Association, King Abdulaziz throughout Saudi Arabia and neighboring Bahrain. First created Charitable Association and Al-Nahda Philanthropic Society out of Boeing’s industrial participation pledge to Saudi Arabia, in Saudi Arabia. Alsalam has become a profitable, important venture that benefits “The contribution made by Boeing lays the ground for Boeing, said Mohammed Fallatah, president and chief executive the development of necessary instructional tools to serve of Alsalam Aircraft. disabled children,” said Uzma Raheem, director of the Hope “Our cost structure and local character often give us a competi- Center for Exceptional Needs, which provides skills training tive advantage, and having reach-back capability to Boeing allows for children with Down syndrome, autism, learning disabilities Alsalam to leverage Boeing’s strengths to enhance our mutual and related conditions. “This helps us create knowledge position in the market,” Fallatah said. “The vision of Boeing back and awareness among families who need to recognize the in the 1980s—to have a strong link to the Saudi market through disability symptoms in order to help their children.” developing the joint venture—has paid dividends not just from a monetary view but from the perception of commitment to the growth of Saudi national talent.” With that track record, Boeing is a welcome partner on other ventures and at research institutions in Saudi Arabia, Fallatah said. At King Abdullah University of Science and Technology, the company is involved in research to develop new tools to analyze the long-term PHOTOS: (Clockwise, from top) Alsalam employees perform performance of composite materials. Additionally, Hoffman said, an operations check on a Saudi F-15, one of the many aircraft Boeing is ramping up a new project to create the next generation models that the Saudi Arabia–based maintenance, repair and overhaul company supports. ALSALAM AIRCRAFT Two Alsalam Aircraft of aircraft interior plastics with a Saudi Arabia–based company and technicians perform maintenance and refurbishment on a transport helping Saudi scientists design new thin-film solar cell technology. aircraft cockpit. Boeing owns half of the business, which was “They’re very excited that Boeing is investing in technology and created more than 20 years ago to satisfy an industrial partnership not just showing up when there’s an order to be placed,” Hoffman obligation. ALSALAM AIRCRAFT Students in a lab class at King Abdullah said of the scientific community in Saudi Arabia.