Joby Aviation Eyes Saudi Arabia Expansion with $1B ALJ Deal

Joby Aviation Explores $1 Billion Saudi Arabian Distribution Deal

Joby Aviation and Saudi Arabian conglomerate Abdul Latif Jameel (ALJ) have signed a Memorandum of Understanding (MoU) for a potential $1 billion distribution agreement. This agreement could see ALJ distribute up to 200 of Joby's electric vertical takeoff and landing (eVTOL) aircraft in Saudi Arabia over the coming years.

Accelerated Monetization Strategy

This potential partnership offers Joby a significant opportunity to accelerate its monetization strategy in a key emerging market. Executive Chairman Paul Sciarra highlighted the importance of distributor partnerships for scaling operations and reducing costs.

This shows that with direct sales, there is a way to get to scale earlier for lower cost by thinking about distributor partners.

While the MoU is not a finalized deal, both companies anticipate sharing more concrete details later this year.

Strategic Partnership with ALJ

ALJ, a long-time Toyota distributor, brings valuable infrastructure and expertise in sales, support, pilot training, and maintenance. Their existing relationship with Toyota, a major investor in Joby, further strengthens the partnership. ALJ's connections with the Saudi Arabian government and potential customers, including projects like the Red Sea Project and the AlUla Project, are also key advantages.

Sciarra emphasized the importance of ALJ's established network:

ALJ has a lot of the infrastructure on the ground, not only for the sales process, but also for the support, pilot training, and maintenance. That’s all going to be critical to actually making sure that the sales are not just cut, but are successful over the long arc.

Global Expansion Plans

While this partnership represents a significant step, Joby's primary go-to-market strategy remains focused on launching in Dubai next year, followed by the U.S. market. This agreement demonstrates Joby's broader strategy of leveraging local partners to expand into new markets and accelerate monetization.

This deal coincides with increasing cooperation between the U.S. and Saudi Arabia in technology and energy sectors. Recent significant investments in both countries highlight the growing importance of this relationship.