Joby Aviation is on track to expand its international presence with a potential $1 billion partnership with Abdul Latif Jameel (ALJ), a major Saudi conglomerate. The agreement, which is currently in the form of a Memorandum of Understanding (MoU), outlines plans to distribute up to 200 of Joby’s electric vertical takeoff and landing (eVTOL) aircraft across Saudi Arabia in the coming years.
If finalized, the partnership could accelerate Joby’s efforts to commercialize its aircraft in the Middle East, opening up a new revenue stream through direct sales. Paul Sciarra, executive chairman of Joby’s board, emphasized the importance of distributor relationships in unlocking early growth at lower costs. He highlighted this deal as the first of several such strategic collaborations the company is exploring globally.
The MoU signed between Joby and ALJ signals mutual intent, though it stops short of being a finalized contract. According to those familiar with the matter, more concrete announcements may follow later this year.
This potential agreement marks a significant milestone in the eVTOL industry, as few startups have secured distribution partners at this scale. While Joby plans to operate its own aircraft in markets like the U.S. and partner with airlines in regions like Japan, this deal with ALJ represents a shift toward leveraging regional partners for faster market penetration.
ALJ’s longstanding relationship with Toyota, Joby’s major investor, plays a key role in the collaboration. ALJ has been the exclusive Toyota distributor in Saudi Arabia since 1955 and was also part of Joby’s Series C funding round led by Toyota in 2020. Toyota recently invested an additional $250 million into Joby, reinforcing this alliance.
Beyond investment, ALJ offers critical on-ground infrastructure needed for aircraft operations which including sales support, pilot training, and maintenance. The company’s ties to major Saudi development projects, such as the Red Sea and AlUla tourism initiatives, position it well to promote Joby’s aircraft for regional transportation solutions.
Despite the promising Saudi partnership, Joby’s initial commercial launch is still planned for Dubai in 2026, followed by entry into the U.S. market. Sciarra noted that this distribution model, supported by local partners like ALJ, will enable Joby to tap into secondary markets faster than anticipated.
The deal also reflects growing collaboration between the United States and Saudi Arabia in areas like advanced technologies and infrastructure. Recent investments totaling over $100 billion, spanning AI, data centers, and energy underscore the deepening ties between the two countries.
Joby’s aircraft, which are electric and designed for vertical takeoff, aim to revolutionize urban mobility by offering quick, zero-emission transport across cityscapes. With this latest development, the company is moving closer to making that vision a reality on a global scale.
