RIYADH: Chinese tech giant Lenovo is set to produce millions of computer devices in Saudi Arabia by 2026, after the completion of a $2 billion deal with Alat, a subsidiary of the Public Investment Fund.
First announced in May, the partnership has now received approval from both shareholders and regulators, clearing the way for Lenovo to set up a regional headquarters and a manufacturing facility in Saudi Arabia.
The agreement represents a key step in aligning Lenovo’s growth strategy with Saudi Arabia’s Vision 2030 goals of economic diversification, innovation, and job creation, the company said in a press release.
The facility will produce millions of PCs and servers annually, utilising local research and development teams to create fully “Saudi Made” products. Production is expected to begin by 2026.
Through this powerful strategic collaboration and investment, Lenovo will have significant resources and financial flexibility to further accelerate our transformation and grow our business by capitalising on the incredible growth momentum in Saudi Arabia,” Yuanqing Yang, Chairman and CEO of Lenovo, said.
He added: “We are excited to have Alat as our long-term strategic partner and are confident that our world-class supply chain, technology, and manufacturing capabilities will benefit Saudi Arabia as it drives its Vision 2030 goals of economic diversification, industrial development, innovation, and job creation.”
Amit Midha, CEO at Alat, said: “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. With the establishment of a regional headquarters in Riyadh and a world class manufacturing hub, powered by clean energy, in the Kingdom of Saudi Arabia, we expect the Lenovo team to further their potential across the MEA region.”
When the strategic partnership and investment with Alat were announced in May 2024, Lenovo also revealed its plans for a three-year, $1.15 billion Warrants Issuance aimed at raising additional funds to support future growth and expand its capital base.
The Warrants were fully subscribed, with 43% of them purchased by Lenovo’s leadership, highlighting confidence in the company’s ongoing transformation, global market leadership, and growth prospects.
“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,” said Midha.