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Lenovo: Partnership with ALAT to Add $10 Billion to Saudi Economy by 2030

A Lenovo factory (the company’s website)
A Lenovo factory (the company’s website)
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Lenovo: Partnership with ALAT to Add $10 Billion to Saudi Economy by 2030

A Lenovo factory (the company’s website)
A Lenovo factory (the company’s website)

Following the establishment of a factory by Lenovo in Riyadh through a $1 billion partnership with Alat, a company affiliated with the Public Investment Fund, the project has now entered its active execution phase.

Production is scheduled to begin in 2026 and will see millions of desktop and laptop computers and servers carrying the “Made in Saudi” label being manufactured, coinciding with Saudi Arabia’s efforts to double non-oil industrial exports to $149 billion by 2030.

The Lenovo-Alat collaboration alone is expected to contribute as much as $10 billion to the Kingdom’s non-oil GDP by the end of this decade.

Officials from Lenovo’s Chinese headquarters told Asharq Al-Awsat that the project goes beyond a purely financial investment. It is intended to become a platform for digital innovation, artificial-intelligence applications and the integration of local start-ups into Lenovo’s global innovation chains, thereby enabling the Kingdom to benefit from the company’s international manufacturing and advanced-technology expertise.

They added that the project supports the aims of Saudi Vision 2030 by boosting domestic manufacturing, doubling non-oil industrial exports and generating direct and indirect employment for Saudi youth, alongside upskilling them in AI and advanced computing.

The initiative is among the most prominent examples of Saudi Arabia’s shift towards becoming a regional hub for advanced technologies and artificial intelligence, with a focus on integrating multinational companies into the local innovation ecosystem and localizing high-tech industries under global sustainability standards.

Lawrence Yu, Head of Lenovo’s Middle East & Africa regional headquarters, told Asharq Al-Awsat that the partnership with Alat “marks a turning point from dependence on imported technologies to developing local capabilities.”

He noted the project will transform the Kingdom into “a regional base for advanced manufacturing in computing and artificial intelligence.”

A State-of-the-Art Facility

Yu explained that the new facility in Riyadh has been designed according to the highest global sustainability standards. Production is set to commence in 2026, manufacturing millions of “Made in Saudi” desktop and laptop computers and servers, supporting both local and regional demand and positioning Saudi Arabia at the forefront of digital transformation in the region.

He added that the project will provide approximately 15,000 direct jobs and 45,000 indirect jobs, as well as support the development of local skills in AI and advanced digital technologies.

On his part, Giovanni Di Filippo, Vice President and General Manager for Lenovo Saudi Arabia, described the project as “a strategic step to reinforce the company’s global footprint and diversify its manufacturing geography.”

He explained that Lenovo will transfer part of its technology, manufacturing capabilities and supply-chains to the Kingdom, enabling local start-ups such as Novo Genomics and Nybl Global to be integrated into the company’s global innovation system and scale internationally.

Di Filippo noted that the project aligns with Vision 2030’s targets to enhance local manufacturing and increase the industrial sector’s contribution to GDP to more than $238 billion, and to double non-oil industrial exports to $149 billion by 2030. He emphasized that the Lenovo-Alat partnership alone will contribute up to $10 billion to the non-oil GDP by the end of the current decade.

The officials pointed out that this initiative marks a clear shift in the Kingdom’s strategy from reliance on imported technologies to building local capabilities. It reinforces Saudi Arabia’s role as a regional hub for AI and advanced computing, and supports the private sector and innovation across a variety of fields, including major digital and cultural events such as esports and Expo 2030.

Yu affirmed Lenovo’s commitment to supporting local entrepreneurs and equipping Saudi youth with future skills in advanced manufacturing and AI. He said the company is working with Alat on programs to develop the Saudi workforce, enabling them to lead the digital transformation and contribute to the knowledge-economy, in line with the Kingdom’s commitment to investing in human capital and innovation.

Di Filippo added that the project is not simply about technical manufacturing, but about localizing multinational companies and integrating them into Saudi Arabia’s innovation ecosystem.

He said the partnership with Alat ensures the benefit of extensive regional networks and deep local market experience, making the project a driver of innovation and industrial growth in the Kingdom.

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Al-Jadaan: Ending Conflicts, Securing Peace Are Essential to Sustainable Growth

(L/R) Saudi Arabia's Finance Minister Mohammed Al-Jadaan and IMF Managing Director Kristalina Georgieva speak during a press briefing following a meeting of the IMFC (International Monetary and Financial Committee) at the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 17, 2026. (Photo by Kent Nishimura / AFP)
(L/R) Saudi Arabia's Finance Minister Mohammed Al-Jadaan and IMF Managing Director Kristalina Georgieva speak during a press briefing following a meeting of the IMFC (International Monetary and Financial Committee) at the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 17, 2026. (Photo by Kent Nishimura / AFP)
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Al-Jadaan: Ending Conflicts, Securing Peace Are Essential to Sustainable Growth

(L/R) Saudi Arabia's Finance Minister Mohammed Al-Jadaan and IMF Managing Director Kristalina Georgieva speak during a press briefing following a meeting of the IMFC (International Monetary and Financial Committee) at the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 17, 2026. (Photo by Kent Nishimura / AFP)
(L/R) Saudi Arabia's Finance Minister Mohammed Al-Jadaan and IMF Managing Director Kristalina Georgieva speak during a press briefing following a meeting of the IMFC (International Monetary and Financial Committee) at the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 17, 2026. (Photo by Kent Nishimura / AFP)

Saudi Finance Minister Mohammed Al-Jadaan said the global economy’s ability to withstand crises depends on adopting a “unified strategic vision and swift reforms,” warning that excessive market optimism may be masking serious geopolitical risks, particularly conflicts that threaten supply security.

Al-Jadaan made the remarks at a joint press conference with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), following a meeting of the International Monetary and Financial Committee (IMFC), during the IMF–World Bank Spring Meetings.

The committee concluded its session by adopting the “Diriyah Principles,” described as a landmark framework for IMF quota and governance reform, signaling a renewed phase of multilateral cooperation amid heightened global uncertainty.

Peace as a Foundation for Sustainable Growth

Al-Jadaan said the global economy has faced repeated shocks in recent years driven by wars and conflicts, including the latest escalation in the Middle East.

Beyond the severe humanitarian toll, he said, these shocks have global economic consequences that disproportionately affect the poorest and most vulnerable populations. He cautioned that this is unfolding at a time when policy space has narrowed and international cooperation has weakened.

He emphasized that effective policy responses depend on how shocks transmit through domestic economies, requiring timely and flexible measures supported by credible frameworks and strong international coordination.

Ending wars and securing lasting peace, he said, are indispensable conditions for sustainable growth and long-term stability.

Conflict Risks and Implications for Energy Security

In its statement, the IMFC said the global economy has shown resilience despite repeated shocks, including wars and conflicts. However, it described the Middle East conflict as a significant new global shock, with its economic impact contingent on its duration, intensity, and geographic spread.

The committee noted that damage to infrastructure and disruptions to transportation already pose serious risks to the global economy, despite efforts to sustain energy flows, including rerouting shipping and trade routes to safeguard supply chains.

Members stressed that the impact of the shock varies widely across countries. A prolonged conflict could keep fuel and fertilizer prices elevated, disrupt supplies of key inputs, and intensify risks to energy and food security, global growth, inflation, and external balances.

The statement added that tighter financial conditions and potential spillovers to financial stability could further cloud the outlook. These risks are compounded by deep structural shifts in technology, demographics, and climate-related challenges that are reshaping economies and testing their resilience.

Economic and Financial Policy Priorities

Against this backdrop of heightened uncertainty, the committee said the top priority is to safeguard macroeconomic and financial stability while supporting strong, broad-based growth through credible, timely, and adaptable policies.

Central banks reaffirmed their commitment to price stability, emphasizing that independence and clear communication are essential to maintaining policy credibility and anchoring inflation expectations.

On fiscal policy, the committee said governments should calibrate spending within credible medium-term frameworks to ensure debt sustainability. Where fiscal space permits, temporary and targeted measures can be used to protect vulnerable populations.

Members also reaffirmed their commitment to international standards and to monitoring risks to financial stability. This includes strengthening oversight of systemic risks linked to artificial intelligence, nonbank financial institutions, and digital assets, while leveraging the benefits of technological innovation.

Structural Reforms and International Cooperation

The committee underscored the need to advance structural reforms to encourage private-sector investment, boost productivity, and strengthen energy security.

Members pledged continued cooperation to address excessive global imbalances and trade tensions, build more resilient supply chains, and support a fair and open global economy. They also reaffirmed exchange rate commitments made in April 2021.

The statement welcomed the IMF Managing Director’s Global Policy Agenda and highlighted the IMF’s central role in supporting countries through policy advice, capacity development, and financial assistance in coordination with other international institutions.

Supporting Vulnerable Countries and Addressing Debt

The IMFC reiterated its commitment to supporting countries in promoting stability and growth, with particular focus on low-income and fragile states affected by conflict, especially those facing rising debt pressures.

Members pledged to improve sovereign debt restructuring processes, including under the G20 Common Framework, and to advance work through the Global Sovereign Debt Roundtable.

The committee welcomed the updated “Restructuring Playbook” and called for greater transparency from all stakeholders, including private creditors.

It also urged stronger support for countries with sustainable debt facing short-term liquidity challenges, including faster implementation of the IMF–World Bank “three-pillar approach” and completion of the review of the debt sustainability framework.

Strengthening Surveillance and Lending

The committee backed efforts to enhance IMF surveillance, emphasizing analytical rigor and evenhandedness, and said it looks forward to completing the Comprehensive Surveillance Review and the review of the Financial Sector Assessment Program (FSAP).

Members also supported ongoing work to strengthen the IMF’s lending framework, including the Review of Conditionality and program design, as well as efforts to develop monetary policy frameworks for countries experiencing crises.

Business

Global Markets Regain Momentum after Strait of Hormuz Reopening Announcement

Traders at the New York Stock Exchange (Reuters)
Traders at the New York Stock Exchange (Reuters)
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Global Markets Regain Momentum after Strait of Hormuz Reopening Announcement

Traders at the New York Stock Exchange (Reuters)
Traders at the New York Stock Exchange (Reuters)

Global markets moved sharply on Friday after Iran said it would reopen the Strait of Hormuz to all commercial vessels, prompting investors to rapidly reassess geopolitical supply risks.

Iran’s foreign minister said the strait was fully open to all commercial shipping for the duration of the ceasefire, in a move that coincided with a truce in Lebanon.

Abbas Araghchi said in a post on X that vessel transit through the strait would follow the coordinated route previously announced by Iran’s Ports and Maritime Organization.

The announcement partly eased concerns over global energy supplies and quickly fed through to markets, with oil prices falling sharply after the remarks.

Oil prices tumble

Oil prices fell more than 10% on Friday, extending earlier losses. Brent crude futures dropped $11.12, or 11.2%, to $88.27 a barrel at 1311 GMT, while US West Texas Intermediate crude futures fell $11.40, or 12%, to $83.29 a barrel.

"Comments from Iran's foreign minister indicate a de-escalation as long as the ceasefire is in place, now we need to see if the number of tankers crossing the Strait increases substantially," UBS analyst Giovanni Staunovo said.

The decline reflects a temporary easing of the geopolitical risk premium that had supported oil prices in recent weeks, as investors watch whether the ceasefire could broaden into a wider regional de-escalation.

Dollar slips

The US dollar index fell after Iran’s announcement, down 0.46% at 97.765. The dollar slipped 0.6% to 158 yen, while the euro rose 0.6% to $1.1848, its highest level in two months.

The Canadian dollar strengthened against its US counterpart, while Canadian government bond yields fell.

The loonie rose 0.3% to C$1.366 per US dollar, or 73.21 US cents, after trading between 1.3661 and 1.3707 during the session.

Global equities extend gains

Global equities, already trading at record levels, added to gains after the announcement.

The STOXX Europe 600 rose 1.4%, while futures on the S&P 500 climbed 0.9%.

Michael Brown, senior research strategist at Pepperstone, said improved prospects for navigation through the Strait of Hormuz clearly reduce the geopolitical risk premium, supporting risk appetite.

He added that this shift explains the positive market reaction.

Bond markets cautious

In bond markets, yields on benchmark 10-year US Treasury notes were steady at 4.27%, while two-year yields stood at 3.74%, signaling a cautious balance in monetary policy expectations.

Canada’s 10-year government bond yield fell 8.3 basis points to 3.421%.

In Europe, German two-year government bond yields hit their lowest in a month.

Yields on the two-year Schatz - highly sensitive to interest rates and inflation - fell as much as 11.2 basis points to 2.412% before trimming losses to 2.43%, down about 9.6 basis points on the day. Yields had reached their highest since last July in late March at around 2.77%.

Markets also pared bets on further rate hikes by the European Central Bank, pricing in about an 8% chance of a hike at the next meeting, down from 15% earlier in the session.

The deposit rate is now seen at 2.44% by year-end, versus 2.55% previously.

Precious metals rise

In precious metals markets, spot gold rose about 2% to $4,881 an ounce. Silver jumped more than 5% to $82.30 and platinum gained 3% to $2,149.15, supported by increased demand for safe-haven assets despite lower oil prices.

Business

Georgieva: Venezuela Likely to Get IMF Loan Support after Necessary Groundwork

International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks at a news conference following the International Monetary and Financial Committee (IMFC) meeting during the World Bank and IMF spring meetings at IMF headquarters in Washington, Friday, April 17, 2026. (AP Photo/Jose Luis Magana)
International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks at a news conference following the International Monetary and Financial Committee (IMFC) meeting during the World Bank and IMF spring meetings at IMF headquarters in Washington, Friday, April 17, 2026. (AP Photo/Jose Luis Magana)
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Georgieva: Venezuela Likely to Get IMF Loan Support after Necessary Groundwork

International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks at a news conference following the International Monetary and Financial Committee (IMFC) meeting during the World Bank and IMF spring meetings at IMF headquarters in Washington, Friday, April 17, 2026. (AP Photo/Jose Luis Magana)
International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks at a news conference following the International Monetary and Financial Committee (IMFC) meeting during the World Bank and IMF spring meetings at IMF headquarters in Washington, Friday, April 17, 2026. (AP Photo/Jose Luis Magana)

The International Monetary Fund will likely provide Venezuela with a financial support program as part of its re-engagement with the South American oil exporter provided that certain conditions can be met, IMF Managing Director Kristalina Georgieva said on Friday.

Georgieva told a press conference in Washington that Venezuela faces "a very tough road" to restore macroeconomic and financial stability.

The IMF and World Bank announced their re-engagement with Venezuela on Thursday night after no dealings since March 2019 and no full economic assessment since 2004.

"After a seven-year-long pause, we are committed to actively engaging with Venezuela, to do our part to help the ⁠country achieve macroeconomic and ⁠financial stability, to help the people of Venezuela to see better days," Georgieva said.

But getting to a loan program will take a lot of effort on the part of both Venezuela and the IMF, she said, adding: "It is not going to be an easy process."

IMF Western Hemisphere director Nigel Chalk told a separate briefing that an IMF mission team for Venezuela has been formed and is engaging on a virtual basis with the government ⁠of acting President Delcy Rodriguez, who assumed power after the US ouster of former president Nicolas Maduro in January.

Georgieva said first on the IMF's list of priorities to prepare for a Venezuela program is sorting the country's data adequacy, which she said "falls very short and you can't make good decisions if you don't have good data."

The global crisis lender has reached out to the country's finance ministry, central bank and statistical agency, Reuters quoted Georgieva as saying.

Adequate data would shed light on a complex web of debt, estimated at over $150 billion that will need restructuring before any loan program can proceed. The IMF's loan approval process requires a detailed debt analysis to ensure that borrower countries' debts are sustainable.

Rodriguez, speaking on state television ⁠later in the ⁠day, said that Venezuela was "now part of the international statistical, economic, and financial system, which will allow us to share relevant information to strengthen our economy."

She added that sharing information would help strengthen the South American nation's economy, rebuild international reserves and better balance macroeconomic indicators.

The IMF also wants to work on capacity-building to strengthen Venezuela's economic institutions, Georgieva said, adding that authorities are engaging constructively and demonstrating "good faith."

Georgieva said the IMF is working closely with the World Bank and the Inter-American Development Bank to provide coordinated support for Venezuela that increases its impact.

News of the IMF's re-engagement with Venezuela sent prices of Venezuela's sovereign bonds and those of its state-owned oil company higher on Friday.

Venezuela's 2027 note rose 2 cents to 53.5 cents on the dollar, the highest price since 2017, while PDVSA's 2021 note added 2.7 cents to 46.75 cents.