- NEOM is a smart and sustainable region being developed in northwestern Saudi Arabia
- It freshly invested US $175 mn in Volocopter’s Series E funding round
NEOM, the one-of-its-kind city being built in Tabuk Province in northwestern Saudi Arabia, recently announced a whooping US $175 million investment in Volocopter, a German aircraft manufacturing company. Apart from NEOM, GLy Capital Management also participated in the Series E funding round of Volocopter. The aircraft manufacturer aims to utilize the funds for aircraft certification & launching of its first commercial routes.
The statement specified that NEOM would take a significant equity stake in the company as part of its strategic engagement with the global eVTOL (Electric Vertical Takeoff and Landing) industry. This partnership aims to accelerate electric urban air mobility. Touted as the ‘land of the future’ giga-project, NEOM was first unveiled by Prince Mohammed in 2017.
The officially released statement pointed out that Saudi Arabia’s General Authority of Civil Aviation (GACA), NEOM and Volocopter are closely collaborating to implement a national test bed for Saudi Arabia. It will enable the integration of eVTOLs with zero-emission future urban mobility.
Statements
NEOM CEO Nadhmi Al-Nasr stated: “This crucial investment aligns with the ambitious plans announced by HRH the Crown Prince Mohammed bin Salman, the Chairman of NEOM’s Board of Directors, for the Kingdom to achieve sustainability and to develop NEOM into an accelerator of human progress. It will contribute to taking humanity closer to a new era of mobility – an era defined by zero-emission, electrically-powered vertical take-off and landing vehicles.”
He underlined the collective plan to make air taxis an everyday reality. “Powerful partnerships such as the one that NEOM is cultivating with pioneering companies like Volocopter will fuel giant leaps forward – not just for the benefit of NEOM and the Kingdom – but for all.”
“This is the first time in history that eVTOLs, with their unique characteristics, are being factored into the design of a region that is being built from scratch. This offers a whole new approach to how urban air mobility can increase the quality of life in cities. NEOM’s investment bears testament to our leading position as a technology pioneer in the race to become the first company to break into the emerging urban air mobility market,” said Dirk Hoke, CEO at Volocopter.
Old Partnership
The press release underlined that electric air taxis are a key component of NEOM’s mission to implement a sustainable and seamlessly connected multi-modal mobility system powered by 100% renewable energy. The deal, which was signed in Berlin, Germany, stated that it will expand NEOM’s strategic partnership with Volocopter to progress an advanced air mobility industry in Saudi Arabia, in line with NEOM’s cutting-edge strategy for its mobility sector. It is noteworthy that the partners launched a joint venture way back in December 2021.
An eVTOL aircraft, a newer tech in the aerospace industry, uses electric power to take off, hover and land vertically. Generally, distributed electric propulsion technology is used to integrate the complex propulsion system with the airframe. In recent times, it has been fuelled by the need for new vehicle technology that ensures Urban Air Mobility (UAM). India is also looking forward to having eVTOL aircraft manufacturers set up bases in India.
NEOM is a region in northwest Saudi Arabia on the Red Sea being built from the ground up as a living laboratory – a place where entrepreneurship will chart the course for a ‘new future’, which will include hyperconnected, cognitive cities, ports and enterprise zones, research centres, sports and entertainment venues and tourist destinations.
Volocopter GmbH is a German aircraft manufacturer based in Bruchsal, Germany. The company specializes in the design of electric multirotor helicopters in the form of personal air vehicles, designed for air taxi use. In addition to NEOM, Volocopter has service partnerships in cities like Paris, Singapore and Rome.
