The Chinese computer maker Lenovo Group will open a PC manufacturing facility next year in Saudi Arabia after the completion of a $2 billion investment deal with Alat, a Public Investment Fund-backed manufacturing company.
The agreement means the company, which has headquarters in Hong Kong, will establish its Middle East and Africa HQ in Riyadh.
The deal, 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.
Analysts told AGBI in December that Apple, HP and Dell are losing market share in the region because of the allure of their rivals rather than a boycott of American brands.
Lenovo is the top seller of desktop and laptop computers in the GCC, data from the US market intelligence firm IDC shows. Market share has also dropped for Taiwan’s Asus.
Dell and HP launched a range of PCs featuring artificial intelligence capabilities at the Consumer Electronics Show 2025 in Las Vegas this week, in a bid to regain lost market share in the region.
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