9 Feb 2025
RIYADH: A new chapter in Saudi Arabia’s tech and manufacturing landscape began as the Public Investment Fund (PIF)-backed Alat and Chinese tech giant Lenovo officially broke ground on a $2 billion manufacturing facility in Riyadh. This significant partnership was unveiled at the LEAP 2025 Tech Conference, marking a key milestone in Saudi Arabia’s Vision 2030 goals.
In an exclusive interview, Giovanni Di Filippo, the President of Lenovo’s Infrastructure Solution Group for Europe, the Middle East, and Africa, shared insights into the ambitious project. The manufacturing hub, expected to span 200,000 square meters, is set to become a major production site for the Kingdom. Production is projected to begin by 2026.
“The facility will not just be a manufacturing site. It will also be a customer experience center and an R&D center, all in line with our long-term commitment to Saudi Arabia,” said Di Filippo. The facility aims to produce 2 million “Saudi Made” devices in its first year, with plans to scale production to 9 million units annually.
The project is expected to create up to 15,000 direct jobs and 45,000 indirect jobs in the coming years, providing a significant boost to the local economy and workforce.
In addition to its manufacturing operations, the center will focus on advanced research in AI and robotics, marking an essential step in the Kingdom’s pursuit of technological innovation. Alat and Lenovo also announced the establishment of an AI and robotics technology center, which will help shape the future of high-tech industries in Saudi Arabia.
A pivotal part of the partnership is Lenovo’s strategy to strengthen its presence in the Middle East and Africa (MEA) region. As part of the deal, the company will relocate its MEA regional headquarters to Riyadh and enhance its R&D capabilities within the Kingdom. Lenovo also plans to open a flagship retail space in the region.
Yuanqing Yang, Chairman and CEO of Lenovo, highlighted the significance of the partnership, stating: “This powerful strategic collaboration will allow us to gain a stronger foothold in the MEA region and capitalize on the growth momentum in Saudi Arabia.”
The manufacturing hub and associated R&D center will align with PIF’s broader strategy to boost local manufacturing content from 47% in 2024 to 60% by 2025. This aligns with the Kingdom’s goal to contribute $320 billion to its non-oil GDP and create 1.8 million jobs by enhancing local production capabilities.
Through the collaboration, Alat aims to contribute significantly to Saudi Arabia’s broader tech and manufacturing ambitions, developing capabilities in semiconductors, smart devices, AI infrastructure, and electrification.
The groundbreaking ceremony and announcement reinforce the growing role of Saudi Arabia as a global tech and manufacturing hub, with this venture playing a vital role in fulfilling Vision 2030 objectives for the Kingdom’s economic diversification.
