Early Joby Investor May Become Top Saudi Distributor

Joby Aviation has signed a preliminary agreement with investor and Saudi conglomerate Abdul Latif Jameel (ALJ) to distribute up to 200 electric aircraft, valued at around $1 billion over the next few years.

If finalized, the deal could give Joby a rapid route to commercializing its electric vertical takeoff and landing (eVTOL) aircraft in Saudi Arabia.

“People often ask how and when we’ll start monetizing,” said Paul Sciarra, Joby’s executive chairman and Pinterest co-founder, in an interview with TechCrunch. “This deal shows that direct sales through regional distributor partners can accelerate scale at a lower cost. We see this as the first of several similar announcements to come.”

Joby and ALJ Sign MoU to Explore Future Distribution Deal

On Tuesday, the two companies signed a Memorandum of Understanding (MoU) to explore a potential distribution deal. While an MoU isn’t a finalized agreement, sources familiar with the matter say more definitive details are expected later this year.

If it moves forward, the deal would mark one of the first times an eVTOL startup has secured a distributor for its aircraft. Joby also intends to operate its own fleet in the U.S. and other markets, while partnering with airlines and carriers in countries like Japan.

Paul Sciarra, Joby’s executive chairman and Pinterest co-founder, described ALJ as an ideal partner for several key reasons. Notably, ALJ has a long-standing relationship with Toyota, which recently completed the first $250 million installment of its planned $500 million investment in Joby. ALJ has served as Toyota’s exclusive distributor in Saudi Arabia since 1955 and has become one of the largest independent distributors of Toyota and Lexus vehicles globally. The company also participated in Joby’s Toyota-led Series C funding round in 2020.

ALJ Offers Key Infrastructure for Sales, Support, and Training

In addition to these shared connections, Sciarra noted that ALJ brings significant on-the-ground infrastructure—not just for sales, but also for support services, pilot training, and maintenance.

“All of that will be essential to ensuring the sales aren’t just made, but are successful in the long term,” Sciarra told TechCrunch.

He added that ALJ, an 80-year-old conglomerate with a broad business portfolio, has strong ties to the Saudi government and potential customers, including major restoration and tourism initiatives like the Red Sea Project and the AlUla Project.

Joby Plans Dubai Launch First, Followed by U.S. Market Entry

Despite the encouraging progress in Saudi Arabia, Joby still plans to begin its market rollout in Dubai next year, with the U.S. launch to follow.

“This demonstrates how we’re expanding beyond our initial target markets,” Sciarra explained. “By partnering with the right local companies that can handle both sales and support, we can enter regions that weren’t top priorities but offer quicker paths to monetization.”

Joby’s agreement with ALJ comes at a time of growing collaboration between the U.S. and Saudi Arabia in areas like AI, tech infrastructure, and energy. Just last month, Saudi company DataVolt committed to investing $20 billion in AI data centers and energy projects in the U.S. Meanwhile, U.S. tech giants—including Google, Oracle, Salesforce, AMD, and Uber—have pledged $80 billion toward developing advanced technologies in both nations, according to the White House.

Read the original article on: Techcrunch

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