China’s Lenovo is betting big on Saudi Arabia, naming Riyadh as its regional base for the Middle East, Türkiye, and Africa as it ramps up manufacturing and research investments to boost the Kingdom’s non-oil economy.
The partnership is set to inject fresh momentum into Saudi Arabia’s non-oil gross domestic product through a large-scale manufacturing facility and an integrated research and development ecosystem aimed at localizing knowledge and building national talent capabilities.
This was outlined by Tareq Alangari, Senior Vice President and President of Lenovo for the Middle East, Türkiye, and Africa, who described the company’s investments in Saudi Arabia as among its most critical global commitments, reflecting a long-term partnership with the Kingdom in digital transformation and economic diversification.
The move is part of a strategic collaboration with “Alat”, covering advanced manufacturing, talent development, innovation, and strengthening regional presence, under a vision that extends beyond the local market to serve broader regional markets.
Market support
Alangari told Asharq Al-Awsat that this commitment rests on two main initiatives that underpin Lenovo’s strategy in the Kingdom.
The first is the establishment of an advanced manufacturing facility spanning 200,000 square meters in Riyadh’s Integrated Logistics Special Zone, scheduled to begin production in 2026. The facility will become a global site producing millions of devices annually, including laptops, smartphones, desktop computers, and servers manufactured in Saudi Arabia.
The second initiative is the establishment of Lenovo’s regional headquarters in Riyadh, which will serve as the leadership center for the Middle East, Türkiye, and Africa.
The headquarters will house leadership, research and development, marketing, retail strategy, and customer engagement functions to support government, commercial, and consumer markets across the region, streamlining decision-making and strengthening proximity to customers and partners.
The company has previously projected that these combined investments could contribute up to $10 billion to Saudi Arabia’s non-oil GDP by 2030, while creating extensive direct and indirect job opportunities and accelerating the development of local skills in advanced technologies and artificial intelligence.
Supply chain resilience
Alangari said the company’s approach in Saudi Arabia is not based on short-term deals, but on a transformational vision aimed at strengthening regional supply chain resilience, deepening local partnerships, and supporting Saudi Arabia’s ambition to become a global hub for innovation and the manufacturing of sustainable technologies and AI-driven solutions.
Assessing the investment environment, he said Saudi Arabia represents a high-growth market of exceptional strategic importance, driven by economic diversification, rapid adoption of modern technologies, and the expansion of advanced sectors.
This growth, he noted, aligns with Lenovo’s strengths in cloud computing, artificial intelligence, infrastructure modernization, and the digital sector.
In the supply chain, Lenovo’s factory in the Integrated Logistics Special Zone is expected to play a key role in enhancing resilience at the local and regional levels.
Having a production line in the Kingdom, at the heart of the Middle East and Africa, will help reduce delivery times, ease logistical complexities, and improve the ability to respond quickly to market needs, according to Alangari.
Technology localization
In parallel, Lenovo is seeking to localize advanced technologies by building local capabilities, transferring advanced manufacturing expertise, embedding sustainability standards, and developing a supplier ecosystem that supports the Kingdom’s long-term technological leadership.
The company places the development of Saudi talent at the core of its investments. It has launched a national program to develop capabilities in cooperation with Alat, the Human Resources Development Fund, and the Ministry of Industry and Mineral Resources.
The program aims to train Saudi graduates in advanced manufacturing, engineering, AI-enabled operations, and digital technologies through a mix of theoretical education and hands-on training inside the Kingdom and at global manufacturing sites.
As its operations expand, Alangari expects Lenovo’s investments to create thousands of direct and indirect jobs, supported by production growth and the expansion of research and development, manufacturing, and customer experience activities.
He said this integrated ecosystem would boost local innovation, expand the range of advanced technologies manufactured in Saudi Arabia, and help build a sustainable technology environment in line with the Kingdom’s economic and industrial ambitions.
