Lenovo Set to Begin Saudi Production in Late 2026

Lenovo unveils its Saudi-made laptop at LEAP 2026 (Asharq Al-Awsat)
Lenovo unveils its Saudi-made laptop at LEAP 2026 (Asharq Al-Awsat)
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Lenovo Set to Begin Saudi Production in Late 2026

Lenovo unveils its Saudi-made laptop at LEAP 2026 (Asharq Al-Awsat)
Lenovo unveils its Saudi-made laptop at LEAP 2026 (Asharq Al-Awsat)

Saudi Arabia is seeking to cement its position as a regional technology manufacturing hub as Lenovo prepares to begin commercial production at its new Riyadh plant in late 2026.

The facility, Lenovo’s largest outside China, will be the company’s first worldwide to manufacture laptops, desktops, servers and Motorola smartphones at a single site. It will serve markets across the Middle East, Türkiye and Africa.

Lenovo unveiled its first laptop manufactured in Saudi Arabia at the LEAP 2026 technology conference in Riyadh, marking a shift in its partnership with Alat, a company owned by the Public Investment Fund, from investment and capacity-building to the domestic production of technology devices.

Salman Faqeeh, Lenovo’s vice president and general manager for Saudi Arabia, told Asharq Al-Awsat that the laptop represented an important milestone for the company. He said large-scale production was expected to begin in late 2026.

“The Riyadh facility has been designed to produce Lenovo’s product portfolio over time, including PCs, desktop computers, servers and Motorola smartphones,” Faqeeh said.

“Our Riyadh facility is Lenovo’s first worldwide to produce all four product categories and is also the company’s largest factory outside China.”

Faqeeh said Lenovo remained on track to begin large-scale commercial production in late 2026. The company is focused on developing a world-class manufacturing ecosystem that supports Saudi Arabia’s industrial ambitions, serves regional markets and connects with Lenovo’s global supply chain, he added.

Lenovo’s largest plant outside China

The Riyadh facility has been designed to produce a broad range of Lenovo products, including laptops, desktops, servers and Motorola smartphones.

It will be the first plant in Lenovo’s global manufacturing network to bring production across all four categories together at a single site, as well as the company’s largest factory outside China.

The facility is being built on a site covering about 200,000 square meters at Riyadh Integrated, operated by the Special Integrated Logistics Zone near King Khalid International Airport.

The project is part of a strategic partnership between Lenovo and Alat aimed at developing an industrial and technology manufacturing base serving the Middle East, Türkiye and Africa.

Lenovo officially opened its regional headquarters in Riyadh in April 2026 as part of its plans to expand its manufacturing and research and development operations.

Saudi Arabia as a manufacturing and innovation hub

Faqeeh said Saudi Arabia was becoming increasingly important to Lenovo’s global strategy, not only as a regional market but also as a center for leadership, innovation, talent development, and manufacturing.

The company has established its Middle East, Türkiye, and Africa regional headquarters in Riyadh and is expanding its innovation initiatives and local talent development programs.

Saudi Arabia will play a larger role in Lenovo’s global manufacturing, innovation, and supply-chain network in the coming years, Faqeeh said, citing accelerating investment in the Kingdom’s technology and industrial sectors.

Growing demand for AI solutions

Faqeeh said Lenovo was seeing growing demand in Saudi Arabia and the wider region for artificial intelligence-enabled devices, infrastructure, and services as organizations moved beyond experimentation towards deploying the technology more broadly.

Government, financial services, energy, manufacturing, retail, education, healthcare, and sports were among the sectors driving that growth, supported by heavy investment in digital infrastructure, he said.

Those investments were creating opportunities across the technology ecosystem, ranging from AI-ready devices to data-center solutions and edge-computing infrastructure.

Research, development and talent

Lenovo is continuing work to establish a research and development center and a customer experience center in Saudi Arabia, Faqeeh said.

The company has appointed Dr. Rabeah Alzaidy to lead its local research and development initiatives.

Areas under consideration include artificial intelligence, device innovation, smart manufacturing, and technologies tailored to local market requirements, including support for Arabic-language use.

The customer experience center will allow customers, partners, and policymakers to interact directly with Lenovo’s latest technologies and innovation capabilities, Faqeeh said.

The first group of Saudi engineers has completed training at Lenovo manufacturing facilities around the world and is now supporting the company’s local operations.

Lenovo will continue investing in programs that build expertise in advanced manufacturing, engineering, research and development, and emerging technologies, allowing Saudi talent to participate in the technology industries of the future, Faqeeh said.

Partnership with Alat

Faqeeh said Lenovo’s partnership with Alat had moved from vision to implementation, citing progress in constructing the plant, the unveiling of the first Saudi-made Lenovo laptop, and the launch of initiatives to develop Saudi talent.

The partnership combines Lenovo’s global manufacturing expertise with Saudi Arabia’s industrial ambitions, he said.

It is intended to strengthen domestic capabilities, develop high-value skills, support knowledge transfer, and help build a technology manufacturing ecosystem capable of competing globally.



Gold Gains with Fed Rate Decision in Spotlight

A shop attendant displays pairs of gold bracelets for Chinese weddings during a media preview of the Chow Tai Fook Jewellery Group flagship store soft opening, in Hong Kong, China, February 11, 2026. (Reuters)
A shop attendant displays pairs of gold bracelets for Chinese weddings during a media preview of the Chow Tai Fook Jewellery Group flagship store soft opening, in Hong Kong, China, February 11, 2026. (Reuters)
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Gold Gains with Fed Rate Decision in Spotlight

A shop attendant displays pairs of gold bracelets for Chinese weddings during a media preview of the Chow Tai Fook Jewellery Group flagship store soft opening, in Hong Kong, China, February 11, 2026. (Reuters)
A shop attendant displays pairs of gold bracelets for Chinese weddings during a media preview of the Chow Tai Fook Jewellery Group flagship store soft opening, in Hong Kong, China, February 11, 2026. (Reuters)

Gold prices ticked up on Wednesday as oil prices eased, while market participants looked ahead to the US Federal Reserve's policy decision, with a rate hike largely priced in.

Spot gold was up 0.8% at $4,328.39 per ounce, as of 0310 GMT, after scaling a more than one-month low on Monday. US gold futures for December delivery were down ‌0.9% at $4,369.50.

"A ‌hawkish Fed could pull gold down, ‌while ⁠any soft messaging may ⁠ease bets on hikes and help the metal recover. Traders are also monitoring oil prices and developments in the Middle East," said Frank Walbaum, a market analyst at trading platform Naga.com.

Gold is often seen as an inflation hedge, but higher rates increase the opportunity cost of holding ⁠non-yielding bullion.

Oil prices fell after an unexpected ‌build in US crude inventories, ‌while investors assessed supply risks after Saudi Arabia suspended oil loading ‌at its Yanbu port.

Traders are pricing in a ‌92.4% chance of at least a 25-basis-point US rate hike later in the day, according to CME FedWatch. The policy decision will be followed by a press conference from Fed Chair Kevin ‌Warsh.

On the geopolitical front, Saudi Arabia air defenses destroyed a Houthi drone south of ⁠Makkah before ⁠it entered prohibited airspace over the holy city, a spokesperson for the Saudi-led military coalition in Yemen said.

Commerzbank said it was somewhat surprising that gold prices had not come under greater pressure so far. It noted that gold's resilience may be supported by persistent fiscal concerns, reflected in elevated long-term government bond yields, as well as a recent rise in US political risks.

Among other metals, spot silver rose 1.5% to $64.60 per ounce, platinum edged 0.7% higher to $1,788.25, while palladium gained 1.6% to $1,309.80.


Saudi Cement Companies Balance Investment Gains, Demand Prospects

Saudi Cement Company’s factory. (Saudi Cement Company)
Saudi Cement Company’s factory. (Saudi Cement Company)
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Saudi Cement Companies Balance Investment Gains, Demand Prospects

Saudi Cement Company’s factory. (Saudi Cement Company)
Saudi Cement Company’s factory. (Saudi Cement Company)

Saudi Arabia’s listed cement companies maintained high profitability in the first half of 2026 despite wide disparities in performance and differing sources of growth. Combined net profit stood at about SAR 1.1 billion ($293.9 million), down a modest 2.4% from a year earlier, while the sector recorded profit growth in the second quarter.

The results show that cement and clinker sales were not the only drivers. Investment income, gains from the revaluation and disposal of some underused assets, and tighter control of expenses and financing costs supported several companies. Those farther from major demand centers faced greater pressure from transportation and logistics costs, financing burdens and excess production capacity.

While major producers, led by Yamama Cement Co., Saudi Cement Company and Eastern Province Cement, continued to lead sector profits, the results raise a more important question for the period ahead: To what extent do these profits reflect a sustainable improvement in operating activity, and how much have they benefited from investment and non-recurring items?

Thirteen companies posted first-half profits. Yamama Cement led with net profit of SAR 265.39 million, up 0.88% from SAR 263.08 million a year earlier. Saudi Cement followed with SAR 202.2 million, down 0.88% from SAR 204 million, while Eastern Province Cement ranked third, with profit rising 12.8% to SAR 141 million from SAR 125 million.

Second-quarter net profit for the sector reached SAR 508.7 million ($135.7 million), up 2.27% from SAR 497.4 million ($132.6 million) a year earlier. Nine companies reported profit growth, seven posted declines, while Al-Jouf Cement Company deepened its net losses.

Mohamed Hamdy Omar, CEO of G.WORLD, told Asharq Al-Awsat that the results presented a mixed picture: While the overall figures demonstrate the resilience of financial buffers and the ability of leading companies to adapt, they also reveal wide operational and structural disparities across the sector.

Omar identified four main factors supporting first-half profits, led by non-operating items. Cement and clinker sales were not the sole drivers of profitability, with gains from the fair-value revaluation of investments and capital gains from the disposal of some underused assets also supporting results.

Riyadh Cement Company plant. (Riyadh Cement Company)

He cited Yamama Cement as a prominent example, saying it benefited from the sale of equipment from the old plant’s production lines, as well as investment income.

Spending efficiency and financing-cost management also supported major companies. Saudi Cement and Eastern Province Cement reduced selling and distribution expenses and controlled financing costs, helping limit pressure on profit margins.

Companies based in Riyadh and the Eastern Region also benefited from proximity to major demand centers and projects, Omar said. The accelerated implementation of infrastructure projects and urban expansion provided operating volumes that helped them better absorb cost fluctuations.

Performance gap

Companies farther from major demand centers faced greater operational and logistical challenges. Omar pointed to an approximately 96.4% decline in Tabuk Cement Company’s profit and deeper losses at Al-Jouf Cement, attributing this to higher transportation and logistics costs and heavier financing and debt-servicing burdens among highly leveraged companies or those with lease-based financing structures.

Omar noted that the gap underscored the importance of geography and company size in determining competitiveness, particularly in a market characterized by excess production capacity and uneven regional demand.

He cautioned that relying on asset sales or investment portfolio revaluations to support profits was temporary and could not guarantee sustainable growth.

The real test would be a recovery in domestic demand and improvement in average selling prices per ton, he added.

Lower interest rates could ease debt-servicing burdens, potentially improving net margins and providing greater liquidity for rehabilitation and expansion.

Omar noted that mergers and acquisitions could become a more pressing strategic option as the performance gap between large and small producers widens, helping companies strengthen pricing power, reduce administrative and general expenses and address excess production capacity.

The ability to sell surplus production in neighboring regional markets will remain crucial in the second half, he stressed, alongside energy costs and feedstock-use efficiency.


Oil Slips on US Stock Build, Middle East Disruptions Limit Losses

 An oil tanker sails near the oil hub at the port of Fos-Lavera at sunset near Marseille, southern France, September 15, 2026. (Reuters)
An oil tanker sails near the oil hub at the port of Fos-Lavera at sunset near Marseille, southern France, September 15, 2026. (Reuters)
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Oil Slips on US Stock Build, Middle East Disruptions Limit Losses

 An oil tanker sails near the oil hub at the port of Fos-Lavera at sunset near Marseille, southern France, September 15, 2026. (Reuters)
An oil tanker sails near the oil hub at the port of Fos-Lavera at sunset near Marseille, southern France, September 15, 2026. (Reuters)

Oil prices fell on Wednesday, retreating after a two-day rally following an unexpectedly large build in US crude inventories, while supply disruptions in the Middle East lingered.

Brent crude futures fell 73 cents, or 0.67%, to $108.02 a barrel at 0450 GMT, while US West Texas Intermediate futures were down $1.1, or 1.04%, at $104.73 a barrel.

Both benchmarks settled more than $3 higher and at their highest levels since May 19 on Tuesday.

US crude oil, ‌gasoline ⁠and distillate inventories ⁠all rose last week, market sources said on Tuesday, citing data from the American Petroleum Institute.

Crude inventories rose by 7.1 million barrels in the week ended September 11, the sources said, citing API data. That compared with analysts' expectations for a draw of about 1.6 million barrels, according to a Reuters poll.

API's data showed unexpected builds in gasoline and diesel inventories have weighed on prices, but regional stock ⁠increases do not change the underlying tightness in the global ‌crude market, Haitong Futures said in a ‌note.

Despite the inventory pressure, prices remained resilient as traders focused on disruptions to physical supplies, ‌said Priyanka Sachdeva, head of market insights at Phillip Nova, in a report ‌on Wednesday.

European diesel futures rose to a record high on Tuesday, further highlighting tightness in fuel markets as Middle East disruptions constrained ‌crude and product flows.

Visible vessel transits through the Strait of Hormuz remained in the single digits at four on Tuesday, down from seven a day earlier, preliminary shipping data showed on Wednesday, falling well short of the 10-day average of 18.

The drop in traffic through the waterway that handled a fifth of the world's oil and liquefied natural gas supply before the US-Israeli war on Iran started comes after attacks in the region intensified.