https://arab.news/n9ezt
- Facility is expected to begin production in 2026
- Collaboration is projected to generate up to 15,000 direct and 45,000 indirect jobs
RIYADH: Saudi Arabia’s Public Investment Fund’s Alat and Chinese tech giant Lenovo have officially broken ground on a new manufacturing hub in Riyadh, marking a key milestone in their $2 billion strategic partnership.
Located within the Special Integrated Logistics Zone at Riyadh Integrated, the facility will span 200,000 sq. meters and is expected to begin production in 2026.
The collaboration is projected to generate up to 15,000 direct and 45,000 indirect jobs while contributing as much as $10 billion to the Kingdom’s non-oil gross domestic product by 2030.
The hub will produce millions of “Saudi Made” laptops, desktops, and servers, contributing to the nation’s Vision 2030 goals of economic diversification and industrial development.
The two companies took a step further in their partnership during LEAP25 held from Feb. 9— 12 in Riyadh, announcing the establishment of an advanced manufacturing and technology center based on artificial intelligence and robotics.
This is also part of PIF’s strategy to boost the Kingdom’s local manufacturing by increasing local content from 47 percent in 2024 to 60 percent by 2025, contributing $320 billion to non-oil GDP and creating 1.8 million jobs.
“Through this powerful strategic collaboration and investment with Alat, we gain greater global presence, a strong regional foothold, and the ability to capitalize on the incredible growth momentum in Saudi Arabia and the wider MEA region,” said Yuanqing Yang, chairman and CEO of Lenovo.
The groundbreaking follows the completion of Lenovo’s $2 billion investment in Alat, which was finalized after securing shareholder and regulatory approvals.
Initially announced in May, the deal was completed in January and involves the issuance of three-year zero-coupon convertible bonds, establishing a long-term partnership between the two firms.
The manufacturing facility will complement Lenovo’s global production network, which includes over 30 factories across China, Germany, India, Japan, the US, and other markets.
According to Lenovo, the new hub will enhance supply chain resilience and improve service to customers across the Middle East and Africa region.
The firm also plans to establish its MEA regional headquarters in Riyadh, expand research and development activities, and open a flagship retail space in the Kingdom.
Amit Midha, the CEO of Alat, emphasized the broader economic impact of the collaboration, saying: “We are incredibly proud to become a strategic investor in Lenovo and partner with them on their continued journey as a leading global technology company.”
Beyond manufacturing, the agreement includes a business development partnership leveraging Alat’s regional relationships and market expertise.
Alat, which aims to build advanced manufacturing capabilities across multiple industries, has outlined plans to produce goods across 34 product categories within nine business units, including semiconductors, smart devices, electrification, and artificial intelligence infrastructure.
Lenovo, recognized as one of Gartner’s top 25 supply chains, expects the Saudi facility to strengthen its operations in the MEA region while supporting the Kingdom’s ambition to become a global technology and manufacturing hub.