Lenovo Group is set to open a significant PC and server assembly plant in Saudi Arabia, marking a strategic expansion beyond China into the Middle East, a region of swift technological advancement.
Supported by a $2 billion investment from Alat, part of Saudi Arabia’s Public Investment Fund, the facility aims to commence operations by 2026. It is expected to employ thousands and produce millions of PCs annually, becoming a key high-tech manufacturing hub in the region.
Yuanqing Yang, Lenovo’s CEO, emphasized the strategic importance of this venture, highlighting its potential to boost Lenovo’s transformation and growth in the Middle East and Africa. The company also plans to establish a regional headquarters in Riyadh, reinforcing its commitment to the area.
The factory offers Lenovo a chance to bypass US restrictions on high-performance hardware exports to China and diversify its production beyond Asia. It aligns with Saudi Arabia’s Vision 2030 initiative, aimed at economic diversification and modernization.
In addition to assembly, Lenovo plans to set up local research and development to tailor products for regional markets. This $2 billion investment signals the creation of one of the largest high-tech facilities in the region, significantly impacting global computer manufacturing.
This move is part of a broader shift among PC makers to lessen dependence on Chinese manufacturing. With this new plant, Lenovo adds Saudi Arabia to its global production sites list, which includes countries like Argentina, Brazil, and the US.
Other tech companies are also investing in Saudi Arabia. Huawei has secured a full investment license for 5G infrastructure, Alibaba Cloud has established a presence in Riyadh, and SoftBank is collaborating on industrial robots. Meanwhile, Chinese EV makers Human Horizons and Enovate are setting up major manufacturing ventures in the Kingdom.