Saudi Arabia’s PIF Eyes Stake in Leonardo’s Aerostructures Division

Saudi Arabia’s Public Investment Fund is reportedly in preliminary discussions to acquire a stake in the aerostructures unit of Leonardo SpA, Italy’s prominent aerospace and defence company. This potential investment aligns with PIF’s strategic objective to diversify Saudi Arabia’s economy by expanding its footprint in the global aerospace sector.

The aerostructures division of Leonardo is responsible for the design and manufacturing of critical components for both civil and military aircraft. By investing in this unit, PIF aims to bolster its domestic aerospace capabilities and foster technological advancements within the Kingdom. This move is consistent with Saudi Arabia’s Vision 2030 plan, which seeks to reduce the nation’s reliance on oil revenues by developing high-tech industries.

While specific financial details of the potential investment have not been disclosed, sources familiar with the matter indicate that the talks are at an early stage. The collaboration could provide Leonardo with enhanced access to the Middle Eastern market, potentially leading to increased contracts and partnerships in the region.

This development follows a series of strategic investments by PIF in the aviation sector. Notably, in December 2024, PIF, in partnership with French investment firm Ardian, acquired a 37.62% stake in Heathrow Airport Holdings for €4 billion. This acquisition underscored PIF’s commitment to expanding its global infrastructure portfolio and establishing long-term partnerships with key industry players.

In a related development, Leonardo is reportedly nearing a partnership agreement with Turkish drone manufacturer Baykar. This collaboration aims to leverage Baykar’s expertise in unmanned aerial vehicles to enhance Leonardo’s product offerings in the rapidly evolving drone market. Such a partnership could position Leonardo to meet the increasing global demand for advanced drone technologies.