Chinese technology giant Lenovo Group broke ground on a new manufacturing facility in Riyadh, Saudi Arabia. It is in collaboration with Alat, a conglomerate owned by the Saudi Public Investment Fund (PIF).
Lenovo’s new factory, spread across a 200,000sqm site, is situated in the Special Integrated Logistics Zone (SILZ)’s ‘Riyadh Integrated’ campus. The facility will produce laptops, desktops, and servers.
Go deeper with GlobalData
The site, slated to open in 2026, will bring the company closer to its Middle Eastern and African customers and complement its existing network of over 30 factories worldwide. The expansion will further strengthen Lenovo’s supply chain resilience and flexibility.
Lenovo and Alat first announced their strategic collaboration in May 2024. The partnership, with a proposed $2bn investment, included a new PC and server manufacturing facility in the Kingdom. It also included the establishment of a regional Middle East and Africa (MEA) headquarters. The partnership, in its entirety, will create up to 15,000 direct jobs and up to 45,000 indirect jobs.
Yuanqing Yang, chairman and CEO of Lenovo, expressed his excitement about having Alat as a long-term strategic partner.
“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,” he added.
Amit Midha, CEO of Alat said, “Alat and Lenovo have entered a business development partnership which will leverage Alat’s extensive relationships in the region and local market insight.”
Headquartered in Beijing, the company has over 69,500 employees globally. Last year in 2024, it invested in new facilities in Bengaluru (India), and Hong Kong.
