Saudi Arabia’s newly established Ministry of Investment (formerly Sagia) has awarded a trade licence to Virgin Hyperloop One (VHO), thus marking a significant milestone for the California-based developer in its pursuit to commercialise the technology.

The category leader in hyperloop development, VHO received the licence at the US-Saudi Arabia Business Forum held in Washington DC.

This comes following a recent announcement by the Ministry of Transport and the Public Transport Authority in Saudi Arabia to conduct the world’s first hyperloop study on a national level.

Under the agreement, VHO will examine viable routes, expected demand, anticipated costs and explore socio-economic impacts. In addition, hyperloop is expected to create jobs and add to the local GDP and furthers the exchange of specialized knowledge, while creating the infrastructure for a connected Saudi Arabia.

The licence was presented by Dr Majed Al Qasabi, Minister of Commerce and Media, to Tim Wilkinson, executive director, Strategy and Growth at VHO in the presence of Princess Reema bint Bandar Al Saud, ambassador of Saudi Arabia to the US, John Abizaid, US ambassador to Saudi Arabia and the Wilbur Ross, US Secretary of Commerce.

Commenting on the achievement, Wilkinson, said: "Receiving the trade licence from the Ministry of Investment, which has been a very smooth and swift process, marks a significant steppingstone in our commitment to Saudi Arabia."

"From here we intend to establish a permanent presence that would better enable us to invest in resources in the region and run our local operations. The move marks important progress towards the commercialization of hyperloop technology and could propel the country to the forefront of hyperloop development worldwide," he stated.

A year prior, King Abdullah Economic City (KAEC) and VHO unveiled results of a study to create a Virgin Hyperloop One Center of Excellence, which would include an integrated test track, and explored the feasibility of creating a manufacturing center and operating facility.

The findings highlighted VHO’s potential to drive domestic value by adding to the creation of more than 124,000 high-tech local jobs, further supporting the technology sector by incorporating advances in robotics and AI while driving an estimated $4 billion increase in Saudi Arabia’s GDP by 2030.

In the same year, Saudi Arabia’s King Abdullah University of Science and Technology (KAUST) and VHO have partnered to spur the country’s technology and transport development.

Signed at the 2019 Future Investment Initiative, the US hyperloop company and the kingdom’s leading private research institution have committed to working together to further support the development of the country’s technology and transportation sector.

VHO had in 2018 entered into a technology partnership with the MiSK Foundation, through which the company welcomed 20 Saudi students to its Los Angeles Innovation Campus,, said the statement from US group.

The purpose of the partnership was to create a connection between VHO and young, aspiring Saudi students that will spur innovation, it added.-TradeArabia News Service