Saudi Arabia’s PIF is said to be discussing an investment in the aerostructures unit of the Italian company Leonardo

BY THE ARAB TODAY Feb 27, 2025

Saudi Arabia’s PIF is said to be discussing an investment in the aerostructures unit of the Italian company Leonardo

Saudi Arabia’s PIF is said to be discussing an investment in the aerostructures unit of the Italian company Leonardo

Saudi Arabia’s Public Investment Fund (PIF) is said to be in early talks to invest in the aerostructures unit of Leonardo, an Italian government-owned company.

Possible PIF Investment

If the deal goes through, the Italian aerospace company Leonardo could set up a civil aviation manufacturing plant in Saudi Arabia, according to Bloomberg.

Representatives from Saudi Arabia’s Public Investment Fund (PIF) visited Leonardo’s facilities in southern Italy this week.

Once finalized, the investment could benefit both sides. Saudi Arabia would gain more involvement in the aerospace industry, while Leonardo would receive financial support for its aerostructures unit, which has been losing money.

This unit makes key structural parts for Boeing’s 787 Dreamliner. However, production delays in the U.S. have slowed down work at Leonardo’s plants, leading to losses.

Background

Last month, Leonardo signed an agreement in Saudi Arabia to expand cooperation and investment in the aerospace and defense sector. This move strengthens its presence in the country, where it already has a regional headquarters.

Leonardo is working with Saudi technology and research partners to support long-term development and production in the country. The agreement also aligns with Saudi Arabia’s Vision 2030 plan, which aims to reduce dependence on oil.

Expansion in the UAE

In February, Abu Dhabi-based EDGE Group and Leonardo signed a partnership agreement to develop defense solutions together.

The deal was signed at the International Defence Exhibition (IDEX) 2025 in Abu Dhabi. The collaboration will focus on airborne defense, anti-missile systems, counter-drone technology, mobile surveillance, and naval combat management.

What’s Next?

Leonardo’s CEO, Roberto Cingolani, recently said the company has found an investment partner for its aerostructures business, which employs about 4,000 people across four plants in southern Italy. More details will be shared in the company’s strategy update on March 11.

Published: 27th February 2025

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