Lenovo Group will soon open a PC manufacturing facility in Saudi Arabia after the completion of a $2 billion investment deal with Alat, a Public Investment Fund-backed manufacturing company.
This agreement means the company, which has headquarters in Hong Kong, will establish its Middle East and Africa HQ in Riyadh.
The deal which was first announced in May, involves Lenovo issuing $2 billion in convertible bonds to Alat, which will be converted to nearly 1.5 billion shares after three years.
Lenovo said the agreement has now received shareholders’ approval and all regulatory approvals required for completion.
The factory, due to open in 2026, will build millions of PCs and servers using local research and development teams for fully end-to-end “Saudi-made” products. It is expected to create thousands of jobs, Lenovo said.
Lenovo plans to invest in retail space to sell PCs in Saudi Arabia and has established a business development partnership with Alat that will use Alat’s extensive relationships in the region and local market knowledge.
“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,” said Amit Midha, Alat’s CEO.
Alat, established in February last year, focuses on manufacturing products that serve local and international markets via seven business units: advanced industries, semiconductors, smart appliances, health, devices, buildings and next-generation infrastructure.
It plans to generate 39,000 jobs in the kingdom and achieve a direct non-oil GDP contribution of $9.3 billion by 2030.
The Gulf PC market, with relatively wealthy, young and tech-savvy consumers, is one of the most competitive in the world.
