SATS Ltd. (SATS) has announced a strategic partnership with Avilog Logistics Services Company (AVILOG) to accelerate its growth in the Kingdom of Saudi Arabia's rapidly expanding aviation and logistics sector.
Under the agreement, AVILOG — an investment vehicle newly formed by Albawardi Holding Group (ABG) and Abdulkadir Al Muhaidib and Sons Company (AMG) — will acquire a 49% stake in SATS Saudi Arabia (SATS SA).
SATS said this move strengthens its ability to support the Kingdom's ambitious transformation under Vision 2030, which aims to establish a global leadership position in the transportation sector.
"With significant growth forecast in passenger traffic and cargo handling at its airports by 2030, substantial market opportunities are expected to emerge," the gateway services provider said.
It added that this partnership is well placed to capture these opportunities by combining SATS' operational expertise in air cargo handling with the joint venture partners' extensive local network and market knowledge.
The announcement said both ABG and AMG bring extensive capabilities that complement SATS SA's air cargo operations.
ABG's logistics infrastructure includes The Eastern Gateway, a strategic bonded and re-export zone, alongside substantial international transport operations that span the Kingdom.
The group's integrated network includes marine survey services and warehousing facilities, enabling potential multi-modal connectivity.
AMG contributes significant operational scale through its nationwide distribution network and a diverse range of investments spanning multiple sectors.
"Together, these capabilities create opportunities for operational synergies, from enhanced air-side connectivity at key logistics nodes to comprehensive nationwide distribution coverage, which in turn allows SATS SA to strengthen its service offerings to airline customers across the Kingdom," it said.
SATS SA currently operates across three strategic locations - Dammam, Riyadh, and Jeddah - serving 27 airline customers.
The partnership advances SATS SA's expansion plans, particularly the development of its new cargo facility in Jeddah, with ABG and AMG's established business network enabling SATS SA to strengthen its air cargo handling capabilities and expand into multimodal operations across the region.
"This strategic partnership marks a pivotal moment in our growth strategy for the Kingdom of Saudi Arabia, aligning perfectly with the Kingdom's vision of becoming a global logistics hub in the coming years. Through this collaboration with AVILOG, besides strengthening our continued commitment to excellence in the Saudi aviation sector, we look forward to accelerating our growth through AVILOG's logistics network, valuable insights and local connections," commented Bob Chi, CEO of Gateway Services Asia Pacific, SATS Ltd.
"Together, we will deliver enhanced value to our airline customers and the air logistics industry. In doing so, we will contribute meaningfully to the Kingdom's economic transformation while strengthening SATS' international presence," he added.
Isam Majid Al Muhaidib, a representative of AVILOG, said the collaboration with SATS and the formation of this new venture will significantly enhance access to advanced logistics solutions, driving greater efficiency.
"AVILOG embodies the Kingdom's growth in logistics innovation and aligns with Saudi Vision 2030, which aims to position Saudi Arabia as a global logistics hub. We contribute to realising this vision and shaping Saudi Arabia's future alongside our strategic partner SATS," Al Muhaidib added.
