Alat, an innovative company focused on creating a world-class manufacturing hub in Saudi Arabia, and Lenovo, a global technology powerhouse, today celebrated breaking ground at the new manufacturing base in Riyadh.

The factory will be constructed on a 200,000 sqm campus site at “Riyadh Integrated” operated by Special Integrated Logistics Zone (SILZ) and will produce millions of “Saudi Made” laptops and desktops, as well as servers in a factory designed, constructed, and operated to high standards of sustainability, said the companies.

The event follows the deal closing that was announced on January 8, following shareholder and regulatory approvals, and marks the completion of the $2 billion investment (via three-year zero-coupon convertible bonds) alongside the strategic collaboration agreement that was initially announced in May 2024, it said.

The new manufacturing hub, which is expected to begin production in 2026, will be located just 15 minutes from Riyadh´s international airport in the kingdom’s Special Integrated Logistics Zone (SILZ). It will complement Lenovo’s extensive manufacturing footprint of 30+ factories around the world spanning Argentina, Brazil, China, Germany, Hungary, India, Japan, Mexico, and the USA, and further increase supply chain resilience and flexibility.

The new manufacturing hub will also enable Lenovo to be closer to customers in the Middle East and Africa (MEA) region. Lenovo is highly regarded for its supply chain excellence, consistently featuring as one of the world’s top supply chains, across all industries – recently being ranked by Gartner as #10 on its list of the world’s top 25 supply chains.

The new factory in Riyadh will build on Lenovo’s existing presence in the region and enable the company to bring its industry-leading products, services, and solutions to market more quickly, capitalising on the significant IT and business services industry growth momentum in the MEA region, the companies said.

This partnership’s commitment to Saudi Arabia will significantly contribute to the kingdom’s economic goals, aligning directly with PIF’s strategy and Vision 2030. It is projected to create up to 15,000 direct jobs and 45,000 indirect jobs, supporting sustainable growth and national development, with a cumulative non-oil GDP contribution of up to $10 billion by 2030.

In addition, Lenovo will establish a regional Middle East and Africa headquarters (RHQ) in Riyadh, Kingdom of Saudi Arabia (KSA), to serve customers in the region and beyond, a flagship retail space, and expand investments in R&D as well as marketing and strategic partnerships in both KSA and the MEA region.

Yuanqing Yang, Chairman and CEO of Lenovo, said: “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 KSA and the wider MEA region. We are excited to have Alat as our long-term strategic partner and are confident that our world-class supply chain capabilities as well as our innovation will benefit KSA as it drives its Vision 2030 goals of economic diversification, industrial development, innovation, and job creation.”

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