Lenovo and Alat have formally announced the completion of a $2bn megadeal that will see the Chinese multinational technology powerhouse establish their regional headquarters in Riyadh.
A key feature in the agreement will see Lenovo set-up a sustainable manufacturing facility, which will serve as the main hub for them to produce ‘Saudi-Made’ products by 2026.
The $2bn investment and strategic collaboration deal will see thousands of new jobs created across the KSA, and will only serve to further strengthen Lenovo’s supply chain and manufacturing capabilities across the entire Middle East region.
In addition to this, the agreement is designed to expand R&D, retail and strategic partnerships across Saudi Arabia in a bid to capture new market opportunities.
The announcement was initially made in May 2024, the deal has received shareholders’ approval and all regulatory approvals required for completion.
Yuanqing Yang, Chairman and CEO of Lenovo, said the strategic collaboration will serve as a springboard to accelerate their own transformation and help the KSA achieve the goals set out in their Vision 2030 program.
“Through this powerful strategic collaboration and investment, Lenovo will have significant resources and financial flexibility to further accelerate our transformation and grow our business by capitalizing on the incredible growth momentum in KSA and the wider MEA region. We are excited to have Alat as our long-term strategic partner and are confident that our world-class supply chain, technology, and manufacturing capabilities will be a benefit to KSA as it drives its Vision 2030 goals of economic diversification, industrial development, innovation, and job creation,” said Yang.
Echoing the sentiments expressed by Yang, CEO of Alat, Amit Midha, expressed his delight and pride at the agreement with Lenovo.
“We are incredibly proud to become a strategic investor in Lenovo and partner with them on their continued journey as a leading global technology company. With the establishment of a regional headquarters in Riyadh and a world class manufacturing hub, powered by clean energy, in the Kingdom of Saudi Arabia, we expect the Lenovo team to further their potential across the MEA region,” said Midha.
