RIYADH: Chinese technology firm Lenovo Group has announced plans to set up a regional headquarters in Saudi Arabia to strengthen its footprint across the Middle East.
This move is part of Lenovo’s strategic partnership with ALAT, a company owned by the Public Investment Fund, aiming to support the computer maker’s transformation efforts and broaden its global manufacturing presence, according to a statement.
Set to be located in Al Majdoul Tower, the new regional base aligns with Lenovo’s long-term dedication to contributing to the Kingdom’s Vision 2030 and driving the country’s digital transformation and economic diversification efforts.
It also aligns with Saudi Arabia’s government-backed Riyadh regional headquarters program, launched in 2021, which offers incentives such as a 30-year corporate income tax exemption and withholding tax relief, alongside regulatory support for multinationals operating in the Kingdom.
Matt Dobrodziej, president of Lenovo Europe, Middle East, and Africa, said: “Through our strategic partnership with ALAT and investment in advanced manufacturing, we are proud to contribute to the Kingdom’s Vision 2030 by supporting industrial diversification, accelerating digital transformation, and enabling sustainable economic growth.”
He added: “Our initiatives in Saudi Arabia, including the RHQ, flagship retail space, and the Riyadh-based manufacturing facility, are projected to contribute up to $10 billion to non-oil gross domestic product by 2030, reinforcing our commitment to the Kingdom’s long-term development.”
As part of the partnership, Lenovo and ALAT began construction in February on a 200,000 sq. meters advanced manufacturing plant located in Riyadh Integrated, within the Special Integrated Logistics Zone. The facility is expected to start producing millions of “Saudi Made” devices by 2026.
Lenovo is also advancing efforts to set up its regional headquarters in Riyadh. This hub will play a key role in driving the company’s wider regional strategy, which includes investments in a flagship retail location, a VIP customer center, research and development, marketing initiatives, and strategic collaborations throughout Saudi Arabia.
Almost 600 international companies have set up bases in the Kingdom since 2021, including Northern Trust, IHG Hotels & Resorts, and Deloitte, the Saudi Press Agency reported in March.
The latest move underlines the strengthening bilateral relations between the Kingdom and China, with Saudi Arabia being the largest trading partner of the Asian country in the Middle East since 2001.
China and Saudi Arabia are strategic partners in various other sectors such as energy and finance, as well as the Belt and Road Initiative.
