Saudi Arabia Partners with US Firm to Launch 'Flying Cars'
Saudi Arabia has teamed up with Doroni Aerospace, a US company, to manufacture and export the revolutionary H1-X 'flying car.' This partnership signifies a major step towards advanced personal transportation solutions.
The H1-X is a two-seater aircraft designed for personal use. It can conveniently fit in a two-car garage and recharge at home. This innovative aircraft takes off vertically from a driveway, making it ideal for urban environments.
Doroni Aerospace, headquartered in Pompano Beach, Florida, announced a $30 million investment from Innovation Wings Industries (IWI), also known as Kingdom Aero Industries (KAI) in Saudi Arabia. This funding will accelerate the development of the H1-X's electric vertical take-off and landing (eVTOL) system. Expanding Market Reach
According to a press release from Doroni, the partnership aims to launch the H1-X by the end of 2026. The joint venture will start manufacturing the aircraft in Saudi Arabia in 2027, enabling global distribution. This deal will help expand Doroni's market reach significantly.
The $30 million investment includes an initial $5 million payment due at closing, with the remaining $25 million contingent on achieving key development milestones over the next two years. After the investment, KAI will own a 40% stake in Doroni, subject to future capital raises.
Doroni CEO Doron Merdinger emphasized the acceleration of various processes: 'This investment speeds up development, certification, and production. We aim to bring the H1-X to market by the end of 2026.'
KAI's CEO, Ismail Kashkash, joined Doroni's Board of Directors as part of the agreement. He expressed confidence in Doroni, stating, 'This partnership aligns with our mission to provide transformative air mobility solutions to the world.' Vision 2030 and Economic Diversification
Saudi Arabia's investment in advanced transportation technology aligns with its Vision 2030 goals. The initiative aims to diversify the economy, reducing reliance on oil revenues and embracing innovative solutions.
This partnership represents a significant leap forward in personal mobility, positioning Saudi Arabia at the forefront of transportation innovation.
Short link :
Post Views: 71
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
a day ago
- Arab News
Where the money is flowing: AI, agritech, and fintech set to lead Saudi venture capital ecosystem
RIYADH: Saudi Arabia's venture capital ecosystem is entering a pivotal phase of growth, fueled by a surge in domestic and international investment targeting sectors aligned with the Kingdom's Vision 2030. Agriculture tech, fintech, artificial intelligence, and clean energy are emerging as key pillars of this transformation, driven by regulatory reforms, demographic shifts, and a rising global investor appetite. The country's ambition to become a regional innovation hub is drawing sustained capital inflows, placing it at the center of the broader emerging venture market investment narrative. Domestic ambition shapes sectoral disposition Said Murad, senior partner at investment firm Global Ventures, cited Saudi Arabia's high food import dependency and its ambitions to boost domestic production as key in drawing funds to the Kingdom. 'Agritech and climate-related technologies will certainly contribute to the next phase of investment growth,' he told Arab News in an interview. Complementing this trend, Philip Bahoshy, CEO of MAGNiTT, pointed to fintech, AI, clean energy, logistics, and advanced manufacturing as areas expected to dominate future funding. 'These sectors align with Vision 2030's push for economic diversification and digital transformation,' he told Arab News, with health tech and deep tech also gaining traction due to increasing research and development support and regulatory tailwinds. AI, in particular, is emerging as a dominant investment theme in the region. According to MAGNiTT's 2025 predictions, the sector is set to double its share of venture capital funding in emerging venture markets this year, following a surge of high-profile deals in 2024. 'AI was the main driver of investment activity both in the private and public markets in the US and other mature markets in 2024,' the platform noted, referencing data from PitchBook. In the first nine months of 2024, AI accounted for 41.3 percent of US venture capital funding. In Saudi Arabia, this momentum is reflected in deals such as Intelmatix's $20 million Series A round and Amazon Web Services's planned data center investment, both signaling the Kingdom's rising stake in the global AI landscape. MAGNiTT also cited broader geopolitical and commercial developments in the AI space, including chip export agreements, as indicators of the sector's rising importance in the region. 'Based on our proprietary data, we expect AI funding to double in 2025 due to increased investor attention to innovative AI startups,' the company stated. Beyond AI, Global Ventures' investment in Iyris, an agritech company spun out of King Abdullah University of Science and Technology, illustrates the potential of local innovation to address long-standing structural challenges. 'Iyris is positively disrupting agricultural practices for mid-to-low-tech farmers, particularly in hot climates,' Murad said. The startup launched the National Food Production Initiative in 2023, partnering with SABIC and Red Sea Global to establish a sustainable farming project in Bada, Saudi Arabia, aimed at regenerating unproductive land and enhancing food security. Fintech remains another strong area of interest, supported by a digitally connected population and a push toward financial inclusion. 'With 98 percent internet penetration and 97 percent smartphone adoption among the 18-to-78-year age group, the Kingdom has one of the world's most digitally enabled populations,' Murad said. He views this as a key enabler for innovation in financial services, both consumer-facing and enterprise-driven. Focused sectors, broad appeal Capital inflows into Saudi Arabia are being driven not only by sector performance but also by global institutional interest in the region. According to MAGNiTT, firms including BlackRock, Golden Gate Ventures, and Polen Capital have already established offices or acquired licenses in the Kingdom, the UAE, or Qatar. Others, including General Catalyst and the BRICS Investment Fund, have made their investment debuts or launched dedicated MENA-focused funds. 'In 2025, we expect even more investors and asset managers to set up offices in the EVM regions, particularly Saudi Arabia and the UAE,' MAGNiTT stated, attributing this to the region's 'friendly business-enabling environment.' Deal flow in the Kingdom has grown across all funding stages. 'Saudi Arabia saw a surge in pre-seed and seed-stage funding,' said Murad, noting that demand for later-stage capital is increasing as startups validate their models and seek international expansion. Supporting this trajectory is a growing exit pipeline. In 2024, Saudi Arabia completed 42 initial public offerings, ranking seventh globally in capital raised. 'This growing pipeline of exits signals the increasing maturity of the country's capital markets and reinforces the long-term viability of its venture ecosystem,' Murad added. As international capital intensifies, local venture firms are adapting their strategies to remain competitive. 'Regional players active in the market will understand local nuances, ultimately providing a competitive advantage,' Murad said. He emphasized that investors offering operational support and showcasing portfolio success stories will be best positioned to attract international limited partners. The Kingdom's regulatory environment is increasingly seen as a strength in the region's venture capital narrative. 'Government initiatives and the regulatory framework are geared to venture capital firms investing in startups in a secure, forward-thinking, and robust environment,' Murad said. Still, he cautioned that strong business fundamentals remain essential. 'The need for entrepreneurs to have strong, sustainable business models with good unit economics is as necessary as ever,' said the Global Ventures partner. Despite global uncertainties, Saudi entrepreneurs may be better equipped than most to navigate a challenging macroeconomic environment. 'At Global Ventures, we refer to the 'adversity advantage'— a natural upside for regional entrepreneurs who are used to working with, and around, resource scarcity,' Murad said. 'This has empowered them, by design, to build businesses more resilient and adaptable to challenges,' he added.
Argaam
2 days ago
- Argaam
SAMA issues updated rules for issuance, operation of credit cards
The Saudi Central Bank (SAMA) issued the updated rules for the issuance and operation of credit cards. The updated rules aim to reduce costs for customers and enhance disclosure and transparency related to credit card transactions. They also seek to keep pace with ongoing developments and align with the growing variety of credit card products in line with global best practices. The rules include detailed provisions on the issuance and operation of credit cards and increased clarity regarding financial transactions related to the cards. This is in addition to increasing financial awareness among customers, as well as creating innovation-friendly regulatory environment in the financial sector. SAMA also coordinated with global payment companies to review and reduce the costs associated with credit card transactions. This move is part of SAMA's broader efforts to develop and strengthen the digital payments ecosystem and offer diverse payment solutions to both residents and visitors in retail outlets across the Kingdom, in line with Vision 2030.
Arab News
2 days ago
- Arab News
Chinese JD Logistics launches Riyadh hub to speed up deliveries in Saudi Arabia
RIYADH: China's JD Logistics has launched a regional operations center in Riyadh, enabling same-day and next-day deliveries across Saudi Arabia through its self-operated express service, JoyExpress. The new 8,000-sq.-meter smart warehouse — JD's first in the region — will serve as a logistics base for its business-to-consumer delivery network, supported by advanced automation and a robust supply chain infrastructure, the company said in a press release. The facility is expected to meet rising consumer demand in Saudi Arabia, with a report released in April Research and Markets showed showing that the Kingdom's e-commerce market is expected to grow at a compound annual growth rate of 12.10 percent during the period from 2025 to 2033, to reach $68.94 billion. Rayan Al-Bakri, deputy minister for Logistics Services at Saudi Arabia's Ministry of Transport and Logistics Services, said: 'JINGDONG Logistics' investment in Saudi Arabia aligns with our national vision to become a global logistics hub.' He added: 'We welcome the company's advanced self-operated express delivery services, which we believe will not only elevate service standards in the Kingdom but also create new opportunities for employment, innovation, and industry development in support of Vision 2030.' Saudi Arabia's National Logistics Strategy aims to position the Kingdom as a leading global logistics hub by enhancing infrastructure, fostering economic growth, and ensuring integration across various modes of transport. During the launch, JD Logistics Vice President Wang Ying announced that the company's services will cover most regions of the Kingdom, the Saudi Press Agency reported. Saudi Arabia's Courier, Express, and Parcel market is expanding rapidly, fueled by a digitally savvy population and the ongoing rise of e-commerce. According to a report by Mordor Intelligence, the Kingdom's Courier, Express, and Parcel market is projected to grow at a compound annual growth rate of 6.48 percent from 2025 to 2030, with the B2C segment already comprising 56 percent of the market value in 2024. 'The launch of JoyExpress marks a key milestone in international journey and business development in Saudi Arabia,' said Charlie Peng, head of Middle East at JD Logistics. He added: 'JINGDONG Logistics will provide leading edge services to our customers in Saudi Arabia and importantly, align with Saudi Arabia's Vision 2030 strategy with its focus on logistics and job creation.' The launch comes amid a broader wave of international investment in Saudi Arabia, aligned with the Kingdom's regional headquarters program. The initiative offers incentives including a 30-year corporate income tax exemption, withholding tax relief, and regulatory support for multinationals operating in the Kingdom. In March, SPA reported that 600 foreign companies have established regional headquarters in the Kingdom since 2021. Notable firms include BlackRock, Northern Trust, and Bechtel, as well as PepsiCo, IHG Hotels & Resorts, PwC, and Deloitte.
