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Lenovo Chooses Riyadh as Regional Operations Hub

Tareq Alangari, Lenovo Senior Vice President and President for the Middle East, Türkiye and Africa. (Turki Al-Aqail)
Tareq Alangari, Lenovo Senior Vice President and President for the Middle East, Türkiye and Africa. (Turki Al-Aqail)
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Lenovo Chooses Riyadh as Regional Operations Hub

Tareq Alangari, Lenovo Senior Vice President and President for the Middle East, Türkiye and Africa. (Turki Al-Aqail)
Tareq Alangari, Lenovo Senior Vice President and President for the Middle East, Türkiye and Africa. (Turki Al-Aqail)

Global technology company Lenovo has inaugurated its regional headquarters in Riyadh, after investing more than 2 billion riyals ($532 million) in the Saudi economy, underscoring the Kingdom’s growing role as a regional technology and industrial hub.

The move goes beyond establishing an administrative base. Lenovo plans to build one of its largest integrated manufacturing centers worldwide through a partnership with Alat, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF).

The company aims to reshape regional supply chains and produce devices labeled “Made in Saudi Arabia” for markets across the Middle East, Africa and Türkiye, capitalizing on the Kingdom’s favorable investment environment and rapid economic transformation.

Tareq Alangari, Lenovo Senior Vice President and President for the Middle East, Türkiye and Africa, said Saudi Arabia plays a “significant and strategic role” in the company’s regional strategy.

He told Asharq Al-Awsat that initiatives such as the Regional Headquarters Program, alongside close cooperation with government partners, have created a business environment that supports regional coordination and long-term investment.

Lenovo has invested nearly 2 billion riyals ($532 million) in Saudi Arabia so far, with plans for further expansion.

The investments include the newly opened regional headquarters, a manufacturing facility due for completion by the end of 2026, and plans for a research and development center and a customer experience center. The company is also investing in Saudi talent.

As part of that effort, 28 Saudi engineers have completed training in China under a smart manufacturing graduate program and have returned to take up leadership engineering roles at Lenovo’s local operations.

Alangari said the factory, expected to begin commercial operations by the end of this year, is in the final stages of operational and logistical readiness, including equipment installation, technical testing, and supply chain alignment.

“We will scale up production capacity in phases, in line with operational readiness and market demand,” he stated.

Saudi Investment Minister Fahad Al-Saif, who attended the launch, said Lenovo’s decision reflects the strength of the Saudi economy and the attractiveness of its investment climate.

He described the move as a successful example of the Regional Headquarters Program, which aims to attract multinational companies and enable them to manage and expand regional operations from Saudi Arabia.

Al-Saif said Lenovo is building an integrated presence in the Saudi market in cooperation with national entities, supporting regional growth and meeting global demand through a system that combines decision-making, logistics and an enabling investment environment.

He added that the company’s expansion includes developing research and development programs and skills training, as well as establishing a manufacturing platform with a capacity of up to 8 million units annually. The project is expected to create skilled jobs and support the localization of technology and industry.

Built on a 200,000-square-meter site in Riyadh Integrated and developed in partnership with Alat, the facility will produce millions of devices under the “Made in Saudi Arabia” label.

With total investment reaching $2 billion, the factory will strengthen Lenovo’s global manufacturing network, which includes more than 30 plants worldwide.

The new hub is expected to improve supply chain efficiency and bring Lenovo closer to customers in the Middle East and Africa, enabling faster delivery and reinforcing Saudi Arabia’s position as a regional center for industry and technology.

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Business

IMF: Egypt Staff Mission May Lead to $1.6 Billion Disbursement this Summer

Traffic is seen on a street in central Cairo. Photo: Asharq Al-Awsat
Traffic is seen on a street in central Cairo. Photo: Asharq Al-Awsat
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IMF: Egypt Staff Mission May Lead to $1.6 Billion Disbursement this Summer

Traffic is seen on a street in central Cairo. Photo: Asharq Al-Awsat
Traffic is seen on a street in central Cairo. Photo: Asharq Al-Awsat

The International Monetary Fund said on Thursday that a staff mission is currently in Egypt to conduct the latest reviews on the country's Extended Fund Facility and Resilience and Sustainability Trust loan programs, which ⁠will determine a ⁠possible $1.6 billion disbursement.

IMF spokesperson Julie Kozack told a news briefing that if the review mission results ⁠in a staff-level agreement with Egyptian authorities, a board vote on completion of the reviews and the disbursement could take place over the summer months.

But she commended Egyptian authorities on making ⁠decisive policy ⁠actions that have limited the economic impact of the US-Israeli war on Iran, including keeping fiscal pressures in check.

She said that the IMF staff mission will confirm the resiliency of Egyptian growth.

Business

Saudi Property Measures Help Curb Global Inflation Pressures

A food market in Saudi Arabia (SPA)
A food market in Saudi Arabia (SPA)
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Saudi Property Measures Help Curb Global Inflation Pressures

A food market in Saudi Arabia (SPA)
A food market in Saudi Arabia (SPA)

At a time when the global economy is grappling with strong waves of price pressures caused by the Iran war and disruption in the Strait of Hormuz, Saudi Arabia has managed to chart a different course.

Inflation continued to slow, settling at one of the lowest levels globally, supported by stable rents and regulatory measures to balance supply and demand.

The performance reflected the effectiveness of preemptive government measures and fiscal and monetary policies that helped shield the domestic market from the repercussions of geopolitical crises and global supply chain disruptions.

The latest official data showed that annual inflation slowed to 1.7% in April, according to the General Authority for Statistics.

The Ministry of Finance expects inflation in the Kingdom to slow to around 2% in 2026, compared with 2.3% in 2025.

The slowdown was supported by a slower rise in the cost of housing, water, electricity, gas, and other fuels, which increased by 3.8% compared with previous levels.

The stabilization of actual housing rents at 4.8% for the second month in a row also indicates that the market has begun to absorb regulatory measures. This raises an urgent question in economic circles over whether the Kingdom has already entered a phase of sustainable rent containment.

Experts say this stability could pave the way for further declines in the near term, especially after the approval of the executive regulations on fees for vacant properties, which aim to improve the efficiency of the real estate system and achieve a balance between supply and demand.

The fees are expected to increase real estate supply, which would in turn help lower prices and reduce them at the broader level across the Kingdom, strengthening its position as one of the G20 economies most capable of curbing price pressures.

The government has intensified its efforts to lower real estate prices and continues to do so.

This has come under the directives of Crown Prince and Prime Minister Prince Mohammed bin Salman, who ordered a number of measures to address the issue and bring balance to the real estate sector, after the system, particularly in the capital Riyadh, saw a wave of increases in land prices and rents in recent years.

Data details

Prices in the housing, water, electricity, gas, and fuels group, the second most influential category in inflation, slowed to 3.8% year on year in April, compared with 3.9% in March, recording the lowest rate of increase since the start of the year.

Inflation in actual housing rents also stabilized for the second month in a row at 4.8%, also the lowest rate of increase since the start of 2026.

Monthly comparison

On a monthly basis, the Consumer Price Index rose 0.2% compared with March, as prices increased for food and beverages, housing, and energy. In contrast, stable transport prices and declines in some furniture and clothing items helped limit the acceleration in inflation, keeping rates within moderate levels compared with regional and global markets.

Food and beverage prices, the largest group by weight in the consumer price basket, accelerated to 0.6% in April from 0.3% in March, mainly driven by higher food prices.

Transport prices rose 1% year on year, a slowdown from the previous month and the second-lowest rate of increase since the beginning of the year, helping limit the rise in overall inflation.

Real estate experts told Asharq Al-Awsat that government measures affecting the real estate sector would lower prices, which would, in turn, gradually reduce inflation in Saudi Arabia in the coming period. They said the housing, water, electricity, gas, and fuels group carries significant weight in the inflation rate.

Curbing monopoly

Dr. Osama bin Ghanem Al-Obaidy, an adviser and professor of international commercial law, attributed the slowdown to the stabilization of housing rents, especially after the approval of regulations imposing annual fees of up to 5% of the building’s value on vacant properties.

He said the executive regulations would encourage owners to use their vacant properties and put them on the market, increasing supply and lowering rental prices, thereby affecting real estate inflation by creating a balance between supply and demand.

He said the new regulations followed a series of government measures, including fees on undeveloped urban land, regulation of undeveloped plots, a five-year rent freeze, the development of large housing projects, and incentives for developers to increase real estate supply.

These efforts aim to achieve a more sustainable balance between supply and demand, leading to a further reduction in real estate inflation and, subsequently, a decline in the overall inflation rate.

Larger decline in rents

Economic expert Ahmed Al-Shihri said the slowdown in Saudi Arabia’s annual inflation rate was supported by the stabilization of actual housing rents. He said government moves related to the real estate system had helped calm the pace of increases in housing costs.

Al-Shihri said the decline coincided with the approval of the executive regulations for fees on vacant properties, aimed at boosting real estate supply and encouraging owners of unused units to inject them into the market.

He expected the move to contribute to a larger, gradual decline in rental prices in the coming period, once a better balance between supply and demand is achieved. This would ease pressure on rental prices and strengthen the housing market's stability, potentially supporting the continued slowdown in inflation to low levels compared with several regional and global economies.

He said real estate prices are among the groups with the greatest impact on inflation, meaning that a decline in the sector across the Kingdom would help gradually lower the rate in the coming period.

In conclusion, the data and accelerating legislative moves show that the Kingdom is not merely monitoring inflation indicators but is proactively addressing the roots of price challenges, especially in the real estate sector, which directly affects citizens’ quality of life.

With the executive regulations on fees for vacant properties entering into force and integrated with housing programs and increased supply, the Saudi economy appears to be moving steadily toward consolidating a phase of sustainable price stability. This enhances the appeal of the investment environment and supports households’ long-term financial planning.

Business

IMF Says Constructive US-China Dialogue Good for World Economy

The US and Chinese flag at the Great Hall of the People prior to the state dinner of President Donald Trump and Chinese President Xi Jinping on Thursday May 14, 2026, in Beijing. (AP Photo/Mark Schiefelbein)
The US and Chinese flag at the Great Hall of the People prior to the state dinner of President Donald Trump and Chinese President Xi Jinping on Thursday May 14, 2026, in Beijing. (AP Photo/Mark Schiefelbein)
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IMF Says Constructive US-China Dialogue Good for World Economy

The US and Chinese flag at the Great Hall of the People prior to the state dinner of President Donald Trump and Chinese President Xi Jinping on Thursday May 14, 2026, in Beijing. (AP Photo/Mark Schiefelbein)
The US and Chinese flag at the Great Hall of the People prior to the state dinner of President Donald Trump and Chinese President Xi Jinping on Thursday May 14, 2026, in Beijing. (AP Photo/Mark Schiefelbein)

The International Monetary Fund said on Thursday that it welcomes the initial positive dialogue between US President Donald Trump and Chinese President Xi Jinping, adding that reducing tension and uncertainty between the world's ⁠two largest economies ⁠was good for the world.

"It's very important, of course, that the world's two largest economies are engaging ⁠at the highest level," IMF spokesperson Julie Kozack told a news briefing when asked about the Trump-Xi summit's initial outcomes in Beijing.

"We certainly welcome the fact that there's a constructive dialogue between ⁠the ⁠two countries. Anything that is going to help reduce trade tensions and reduce uncertainty is good for both of those large economies, and, of course, good for the global economy as well," Kozack added, according to Reuters.

Kozack also said that that the IMF was paying close attention to the energy shock caused by ⁠the conflict in the Middle East and its implications for ⁠fertilizer shipments.

History showed it took about six months for increases in fertilizer prices to translate into higher food prices, ⁠and ⁠in some cases reduced yields and food security issues, Kozack added.