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.
In an interview with Arab News on the sidelines of the LEAP 2025 Tech Conference in Riyadh — being held from Feb. 9–12, the President of Infrastructure Solution Group for Europe, the Middle East and Africa region at Lenovo, Giovanni Di Filippo, said that the facility “will become a very large manufacturing site of 200,000 sq. meters,” and is expected to begin production in 2026.
He added: “It is not only manufacturing, it is also a customer experience center, it is also an R&D (research and development) center, which is very important because of our commitment back to the Kingdom.”
The collaboration is projected to generate up to 15,000 direct and 45,000 indirect jobs in the next two to three years, Filippo said.
The hub aims to produce 2 million “Saudi Made” devices in the first year and up to 9 million afterwards. “We expect the first production on PC to be between 12 and 18 months. It also depends on the construction site,” Filippo added.
With the number one shipping priority being Saudi Arabia, Filippo said the large manufacturing site will serve the Kingdom. “We ought to serve the GCC (Gulf Cooperation Council) markets and the African continent, but, for the time being, our commitment to help and enable Vision 2030 is the Kingdom,” he said.
“We want to take the next generation blueprint of manufacturing, which we did in some other markets and replicate this into the Kingdom,” he added.
The two companies took a step further in their partnership during the event, 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 Saudi Arabia’s regional manufacturing by increasing local content from 47 percent in 2024 to 60 percent by 2025, contributing $320 billion to non-oil gross domestic product and creating 1.8 million jobs.
“We expect the Saudi market to be the one to lead in the market. This is why we are also building an R&D center next to the manufacturing side to collect the demand of all the ministries, of all the enterprise customers, to understand what are the specifics of the Saudi markets and how they can leapfrog in the future,” Filippo added.
“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, the 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.
