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Lenovo: Saudi Arabia Capable of Hosting High-Value Industries

A view of a Lenovo event in Saudi Arabia. (Lenovo)
A view of a Lenovo event in Saudi Arabia. (Lenovo)
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Lenovo: Saudi Arabia Capable of Hosting High-Value Industries

A view of a Lenovo event in Saudi Arabia. (Lenovo)
A view of a Lenovo event in Saudi Arabia. (Lenovo)

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.

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Business

Saudi Arabia Ranks First in GCC, 12th Globally in 2026 Marsh CFA Institute Global Pension Index

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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Saudi Arabia Ranks First in GCC, 12th Globally in 2026 Marsh CFA Institute Global Pension Index

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The Kingdom of Saudi Arabia ranked first among GCC states and 12th globally out of 55 pension systems in the 2026 Marsh CFA Institute Global Pension Index. The Kingdom's overall score climbed to 73.2 out of 100, up from 67.6 in 2025, continuing an upward trajectory that has seen it advance 15 places since 2022.

The Kingdom achieved notable gains across the index's three primary pillars. In the Integrity sub-index—which evaluates regulatory governance, member communication, and participant rights—Saudi Arabia scored 83.5, up 9.3 points from the previous year, securing an A rating, the highest classification in the category.

The Kingdom's Sustainability score increased to 61.2 points from 54.6, while Adequacy rose to 77.2 from 75, maintaining an overall B grade, SPA reported.

With its 73.2 score, Saudi Arabia outperformed established international pension systems categorized within the B band, including the United Kingdom, Canada, France, Germany, Belgium, Ireland, and Hong Kong, while leading all participating Gulf nations.

The index noted that Saudi Arabia's advancement was driven by sustained governance reforms, regulatory enhancements, data modernization, and stronger safeguards for scheme beneficiaries.

These results reflect ongoing modernization within the national social insurance ecosystem led by the Social Insurance, aimed at expanding benefit adequacy and safeguarding long-term fiscal sustainability.

Published in collaboration with the Monash Centre for Financial Studies, the 18th edition of the Marsh CFA Institute Global Pension Index evaluates retirement systems covering two-thirds of the world's population across more than 50 sub-indicators.

Business

China’s January-September Fiscal Revenue up 5.1% y/y

People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)
People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)
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China’s January-September Fiscal Revenue up 5.1% y/y

People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)
People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)

China's fiscal revenue increased 5.1% in the first nine months of 2026 from a year earlier, following a gain of 5.7% in the January-August period, the finance ministry said on Friday.

In the January-September period, fiscal revenue totaled 17.2 trillion yuan ($2.58 trillion), with tax revenue growing 6.1% year-on-year and non-tax ‌revenue expanding ‌1.2%.

Fiscal expenditure was up ‌1.0% ⁠on the year ⁠in the period, slowing from a rise of 1.2% in the first eight months.

China has accelerated local special bond issuance this year and plans to front-load part of its 2027 ⁠quota, finance ministry official Zhao Zeyong ‌told a press ‌conference on Friday.

Net special bond issuance ‌from January to September reached 3.56 trillion ‌yuan, accounting for 81% of the annual quota, and issuance for September was at 633.5 billion yuan, up by 214.8 billion yuan ‌from the same month last year, Zhao said.

Revenue from ⁠government ⁠land sales fell 27.9% on the year for the period from January to September, narrowing from a fall of 28.6% in the first eight months of this year.

The property sector downturn that began in mid-2021 has eroded land-sale revenue, long a crucial funding source for Chinese local governments.

Business

Asian Stocks Mixed Ahead of Weekend as Tech Recovers Early Losses

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)
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Asian Stocks Mixed Ahead of Weekend as Tech Recovers Early Losses

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)

Asian equities were mixed Friday as tech firms managed to claw back some early losses on bargain-buying at the end of tough week for the sector, while traditional safe havens benefited from a generally cautious mood.

Since AI-linked companies hit record highs in June, their equity prices have been pummeled by concerns they were overvalued, their huge outlays on infrastructure and hardware might not return a profit and, more recently, their servicing costs were spiraling.

That has combined with an Iran war-fueled surge in oil prices to more than $100 that has ramped up inflation, forced central banks to hike interest rates and sent government borrowing costs to multi-decade highs.

Strong earnings in past quarters have been able to temper many of the concerns, but analysts pointed out that investors are demanding better and better results to justify their backing.

Earnings from Facebook-parent Meta and chip equipment maker Lam Research this week have beaten forecasts but seen their shares dive.

"Even positive news is being ignored," said FOREX.com's Fawad Razaqzada.

"Strong results are no longer enough if the outlook fails to match an already demanding valuation. Investors are becoming much less forgiving."

The rush out of tech has, however, boosted industrial companies overlooked for much of the AI boom, with the Dow rising this week while the Nasdaq and S&P 500 retreated.

The general losses in New York filtered through to Asia in the morning, but some markets staged a comeback as the day progressed.

Seoul -- which was at the forefront of the AI boom and has led recent losses -- shed more than two percent after the open but was up at the close.

Chipmaker and market heavyweight SK hynix -- a major target amid the waves of buying and selling -- ended up more than four percent. However, its US shares fell more than eight percent Thursday after it said it was scrapping plans for an initial public offering for its US subsidiary Solidigm, citing "market conditions and share price trends".

There were also gains in Hong Kong, Shanghai, Sydney, Singapore and Jakarta.

Tokyo's Nikkei 225, which is also heavily weighted to tech, ended in the red, though well off earlier lows. Wellington, Mumbai and Manila were also down. Taipei was closed as Typhoon Champi neared Taiwan.

London, Frankfurt and Paris dropped in the morning.

Safe havens benefited, with the yen rallying against the dollar, helped by strong Japanese inflation data that boosted bets on another interest rate hike.

The currency has struggled against the greenback in recent years owing to the wide interest rate gap between the United States and Japan, as well as worries about the Asian giant's fiscal situation.

US Treasuries were also in demand, with yields falling from two-decade highs.

"Markets are looking for safe havens as the now familiar fears over AI and the tech sector, alongside ever higher oil and energy prices are powering a move back into bonds," said National Australia Bank's Gavin Friend.

"Regardless of the continued climb in oil prices, investors are increasingly looking for safe havens with the recent pullback in US Treasury yields getting a sizeable push," he said, adding that two- and 10-year Treasury yields were at one-month lows.

And Carol Kong at Commonwealth Bank of Australia said the yen could benefit further if the tech trade continued to deteriorate.

Oil prices added to the dour mood on fresh Middle East worries. Brent extended Thursday's spike and headed back towards $115 a barrel for the first time since May, while WTI topped $100.

The latest rally came after Iran threatened to hit US bases in the region if its military continued to escort ships through the Strait of Hormuz.