Joby Aviation's Strategic Expansion into Saudi Arabia and Japan: A Pathway to eVTOL Market Dominance

In the race to redefine urban transportation, Joby Aviation (NYSE: JOBY) has positioned itself as a frontrunner by leveraging strategic partnerships and regulatory progress to unlock high-growth markets. The company's dual focus on Saudi Arabia and Japan—two geographies with divergent but complementary opportunities—highlights its ambition to dominate the electric vertical takeoff and landing (eVTOL) sector. With a $1 billion deal in the Kingdom and a joint venture (JV) with ANA Holdings in Japan, Joby is not only securing recurring revenue streams but also capitalizing on first-mover advantages ahead of its Federal Aviation Administration (FAA) certification.

Saudi Arabia: A $1 Billion Catalyst for Regional Scalability

Joby's partnership with Abdul Latif Jameel, a Saudi conglomerate with a 70-year legacy in distributing Toyota, is a cornerstone of its Middle East strategy. The Memorandum of Understanding (MoU) signed in June 2025 aims to deploy up to 200 eVTOL aircraft, valued at $1 billion, to establish air taxi services in Saudi Arabia. This aligns with the Kingdom's Vision 2030, which prioritizes sustainable mobility and economic diversification.

The deal's significance extends beyond financial terms. Abdul Latif Jameel's deep regulatory and logistical expertise in Saudi Arabia will accelerate the deployment of Joby's eVTOLs, including the development of maintenance, repair, and overhaul (MRO) services and pilot training programs. These infrastructure investments are critical for scaling operations in a region where urban air mobility (UAM) is still nascent.

Regulatory tailwinds further bolster this initiative. Joby's 70% completion of FAA Stage 4 certification (as of Q2 2025) and its 21 full-transition flights in Dubai during summer 2025 have validated the aircraft's commercial readiness. These milestones, combined with Saudi Arabia's proactive regulatory environment, position the company to launch services in the Middle East by 2026—potentially replicating the Dubai model.

Japan: ANA JV as a Recurring Revenue Engine

In Japan, Joby's collaboration with ANA Holdings—a leader in aviation safety and customer service—represents a strategic bet on recurring revenue. The JV plans to deploy over 100 eVTOLs starting in Tokyo, with a phased rollout to Osaka and Nagoya by 2027. ANA's brand strength and operational expertise will be pivotal in building consumer trust, while its 12 consecutive SKYTRAX 5-Star ratings reinforce its ability to deliver premium service.

The partnership's infrastructure focus—vertiports, pilot training, and maintenance networks—ensures scalability. Public demonstration flights at the 2025 Osaka World Expo will serve as a global showcase, attracting both domestic and international attention. These efforts align with Japan's broader push for sustainable urban mobility, where eVTOLs could reduce congestion and travel times by up to 75% on key routes.

Financially, the JV's recurring revenue model is compelling. By targeting high-demand corridors (e.g., Tokyo to Narita Airport), Joby and ANA aim to create a subscription-based air taxi service with high customer retention. While specific financial terms remain undisclosed, Toyota's $500 million investment in Joby (completed in May 2025) and the company's $991 million cash reserves underscore its capacity to fund infrastructure and operational costs.

Regulatory Alignment: The Global Scalability Play

Joby's regulatory progress is a linchpin for its international expansion. The company's 70% completion of FAA Stage 4 certification (with 50% on the FAA's side) and the upcoming TIA aircraft assembly in 2025 are critical milestones. These efforts are supported by the NAA Network—a collaboration between the FAA, UK Civil Aviation Authority, and other regulators—to harmonize standards globally.

Japan's regulatory environment, though still evolving, is accelerating to match. Joby's proactive engagement with Japanese authorities, including test flights and public demonstrations, is building a framework for eVTOL operations. This alignment reduces cross-border friction, enabling the company to replicate its U.S. certification model in other markets.

Financial Strength and Production Capacity

Joby's balance sheet is a testament to its readiness for scale. With $991 million in cash and short-term investments (Q2 2025), the company has the liquidity to fund production, certification, and international partnerships. Its expanded manufacturing facilities in California and Ohio—capable of producing 24 and 500 aircraft annually, respectively—ensure it can meet the combined demand of 300+ eVTOLs from Saudi Arabia and Japan.

The $500 million Toyota investment, with an additional $250 million pending, further strengthens Joby's financial position. This backing is not just capital but strategic: Toyota's automotive expertise and supply chain integration will be vital for cost optimization and quality control.

Investment Implications: A High-Conviction Play

Joby's dual expansion into Saudi Arabia and Japan offers a unique confluence of regulatory, financial, and strategic tailwinds. The $1 billion Saudi deal and ANA JV are not just revenue catalysts but also platforms for establishing market dominance in two of the world's most promising UAM corridors.

For investors, the key risks lie in regulatory delays and production bottlenecks. However, Joby's 70% FAA certification progress and Toyota's manufacturing support mitigate these concerns. The company's focus on recurring revenue—through air taxi subscriptions and infrastructure services—also enhances long-term value.

Conclusion:
Joby Aviation is at the cusp of a transformative phase. Its strategic partnerships in Saudi Arabia and Japan, coupled with regulatory progress and financial strength, position it to capture a significant share of the $1.5 trillion UAM market by 2040. For investors seeking exposure to the next frontier of mobility, Joby's dual expansion represents a high-conviction opportunity with clear ROI potential. The question is no longer if eVTOLs will take off, but how quickly Joby will dominate the skies.