Joby Aviation, a US electric air taxi company, has reached a tentative deal with Saudi conglomerate Abdul Latif Jameel (ALJ) and investors to distribute up to 200 electric vertical takeoff and landing (eVTOL) aircraft in Saudi Arabia.

The potential deal, valued at about US$1 billion, was announced on June 3, 2025, via a Memorandum of Understanding (MoU).

If finalized, this agreement would represent one of the first distribution partnerships for an eVTOL startup.

It could enable Joby to enter the Saudi market and monetize its aircraft more quickly.

Further details about the agreement are expected later this year.

ALJ, which has been the exclusive Saudi distributor for Toyota since 1955, is expected to provide infrastructure for sales, pilot training, and maintenance.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Early distribution deals are reshaping the eVTOL commercialization playbook

Joby’s US$1 billion distribution agreement with ALJ represents a strategic shift in how eVTOL manufacturers approach market entry.

While most eVTOL companies have focused on developing their own operations, Joby is pioneering a hybrid model combining direct operations in primary markets with distribution partnerships in secondary regions 1.

This distribution approach allows for faster market penetration with reduced capital requirements, as ALJ will provide local infrastructure for sales, maintenance, and pilot training rather than Joby building these capabilities from scratch 1.

The global eVTOL market is projected to grow from $0.76 billion in 2024 to $4.67 billion by 2030 (CAGR of 35.3%), making early market positioning crucial for capturing market share 2.

This strategy mirrors successful approaches from other transportation sectors, where companies like Tesla initially focused on direct sales in core markets while using distributors to accelerate international expansion.

2️⃣ The Middle East is emerging as the strategic launchpad for urban air mobility

Saudi Arabia and the UAE are strategically positioning themselves as early adopters of eVTOL technology rather than waiting for implementation in Western markets.