Archer Aviation has announced a strategic partnership with The Helicopter Company (THC) and Red Sea Global (RSG), both owned by the Saudi Public Investment Fund (PIF). According to analysts at FinancialMediaGuide, this collaboration could become a key step in developing the electric urban aviation (eVTOL) market in Saudi Arabia.
The deal centers on the creation of a dedicated “sandbox” in the Kingdom, where Archer Midnight aircraft will undergo testing under conditions closely resembling real-world operations. In this environment, flight performance, operational reliability, regulatory compliance, passenger response, and infrastructure readiness will be evaluated. FinancialMediaGuide believes this approach provides Archer with an important opportunity to minimize risks and optimally adapt to the requirements of the Saudi market.
Red Sea Global, the developer of The Red Sea and AMAALA projects, will manage the testing program. With controlled airspace and sustainable infrastructure, RSG provides a suitable platform for integrating eVTOL technologies into the tourism ecosystem. FinancialMediaGuide emphasizes that the collaboration will help assess how air taxis can become part of sustainable tourism and luxury resorts.
Archer states that test flights could begin as early as 2026, with the first commercial routes connecting airports to resorts. FinancialMediaGuide forecasts that these routes will provide the company with visibility, test its business model in the premium segment, and represent a crucial step before scaling up.
A key strategic factor is replacing the seaplanes currently used by RSG with electric eVTOLs. Seaplanes generate noise and emissions, while the Midnight offers a quiet and eco-friendly alternative. FinancialMediaGuide is confident that switching to electric aircraft could significantly reduce the carbon footprint of resorts and enhance their sustainability as tourism destinations.
The agreement also forms part of Archer’s global strategy. The company is already developing initiatives in South Korea and Japan, demonstrating its intention to become a global player in urban air mobility. FinancialMediaGuide views this collaboration as an important element: state-backed funds like PIF lower barriers and accelerate market entry.
However, significant risks remain. The eVTOL certification process with the Saudi General Authority of Civil Aviation (GACA), the creation of a vertiport network, and staff training could all become bottlenecks. FinancialMediaGuide predicts that any delays or challenges at these stages could postpone the commercial launch, even if pilot flights are successful.
In conclusion, Financial Media Guide believes that, given favorable developments, Archer could become one of the first air taxi operators in Saudi Arabia, and the Red Sea Global “sandbox” could grow into a testing ground for larger PIF projects such as NEOM and Qiddiya. We recommend that Archer and its partners invest in infrastructure, strengthen regulatory engagement, and build long-term alliances with tourism developers. Saudi authorities, in turn, could leverage this collaboration as a tool to promote sustainable air mobility within the framework of their strategic goals.
