Joby Aviation, a developer of electric vertical takeoff and landing (eVTOL) aircraft, has reached a preliminary agreement with Saudi Arabian conglomerate Abdul Latif Jameel (ALJ) to distribute up to 200 electric aircraft valued at approximately $1 billion over the coming years.
The companies signed a memorandum of understanding (MoU) on Tuesday to explore a distribution partnership that could provide Joby with a rapid pathway to commercializing its eVTOL vehicles in the Saudi market. While the MoU does not yet constitute a finalized contract, sources familiar with the matter indicated that more detailed terms are expected later this year.
Paul Sciarra, executive chairman of Joby’s board and co-founder of Pinterest, told TechCrunch that the deal addresses a key question about how Joby intends to monetize its aircraft quickly and at scale. “This shows that with direct sales, there is a way to get to scale earlier for lower cost by thinking about distributor partners in given geographies,” he said.
ALJ, which has a long-standing relationship with Toyota—Joby’s major investor—will leverage its extensive infrastructure for sales, support, pilot training, and maintenance across Saudi Arabia. ALJ has been Toyota’s exclusive distributor in the kingdom since 1955 and played a role in Joby’s 2020 Toyota-led Series C funding round.
Sciarra added that ALJ’s broad network, including close ties with the Saudi government and involvement in major development projects such as the Red Sea and AlUla tourism initiatives, makes it an ideal partner to foster the adoption of eVTOL technology in the region.
Despite the focus on Saudi Arabia, Joby plans to first launch operations in Dubai next year, followed by the U.S. market. The partnership with ALJ reflects Joby’s broader strategy to deepen its global footprint through local distributor relationships that accelerate market entry and revenue generation beyond its initial launch markets.
The deal emerges amid heightened cooperation between the U.S. and Saudi Arabia in technology and infrastructure sectors. Last month, Saudi firm DataVolt announced a $20 billion investment in U.S. AI data centers and energy projects, while American tech giants including Google, Oracle, and Uber have committed $80 billion toward transformative technologies in both countries, according to the White House.
