Saudi Arabia announced on Thursday the completion of investment procedures worth SR1 billion ($266.57 million) to establish the first satellite manufacturing plant in Saudi Arabia. ASPACE, a Hong Kong-based Chinese company, obtained an investment license to set up the factory on the sidelines of the ongoing Future Investment Initiative (FII) in Riyadh. Minister of Investment Eng. Khalid Al-Falih presented the license to Sun FengQuan, co-chairman and CEO of ASPACE. The Ministry of Investment and the Saudi Space Agency have played a pivotal role in facilitating this process, including offering investment support opportunities, and identifying suitable manufacturing sites. This ultimately led to the completion of the first groundbreaking investment deal for the space sector in the Kingdom. The Chinese company will establish an advanced satellite manufacturing factory in the Kingdom for the manufacturing of components, subsystems, and satellites. The volume of investment will increase successively with the progress of the stages of the project, which includes research and development and the manufacturing of components and subsystems, all the way to satellites. ASPACE will benefit from the Kingdom’s geographical location as a platform to enhance space capabilities in the region by investing in advanced satellites, which represent 70 percent of the global space market. This will also promote the Kingdom’s position as an investment and advanced manufacturing destination to foreign companies. Eng. Abdullah Al-Swaha, chairman of the board of directors of Saudi Space Agency, stated that this investment is a significant step towards enhancing the Kingdom’s competitiveness and positioning it as a regional hub for attracting space investments and technologies in this rapidly growing sector. He also emphasized that the Kingdom’s space development, supported by wise leadership, is a key element for supporting and diversifying the economy. On his part, Minister of Investment Eng. Khalid Al-Falih said that granting the first investment license in the satellite field to ASPACE Company is a cornerstone for related investments in the Kingdom, as this field holds immense global opportunities. “This step will undoubtedly encourage numerous companies to invest in the Kingdom, which is currently experiencing exceptional growth and progress in various areas. The satellite industry is going through remarkable advancements that will further enhance the Kingdom’s attractiveness and global competitiveness,” he pointed out. Dr. Mohammed Al-Tamimi, CEO of the Saudi Space Agency, said that ASPACE’s investment in the Kingdom is a significant milestone for the company. He anticipated a positive impact in the space industry within the Kingdom and the enhancement of the overall satellite manufacturing base in the region. “It will have a positive impact on the space sector in the Kingdom and the comprehensive satellite manufacturing base in the region,” He also highlighted the company"s commitment to advancing space technology not only within GCC countries but also globally.