- Lenovo announces plans to establish its new MEA HQ in Saudi Arabia
- It will manufacture “millions” of PCs and servers in a new plant
- Financial performance is strong with Lenovo revenues rising
Lenovo and Saudi Public Investment Fund company Alat have confirmed the completion of their $2 billion investment to “accelerate [Lenovo’s] ongoing transformation” by “[enhancing] its global presence.”
More specifically, Lenovo will invest across supply chain, technology and manufacturing in Saudi Arabia with the hope of generating 1,000 new jobs in the region.
As part of the deal, the Hong Kong computing giant is set to build a new Middle East and Africa (MEA) headquarters in Riyadh, Saudi Arabia.
Lenovo bets big on Saudi Arabia
Part of increasing its presence in the Middle East and Africa will include building a new manufacturing facility in Saudi Arabia to build PCs and servers. The company hopes to build millions of devices a year, with production beginning by 2026.
In its commitment to the Kingdom of Saudi Arabia (KSA), Lenovo will also use local R&D teams to build “fully end-to-end ‘Saudi Made’ products.”
Lenovo CEO Yuanqing Yang commented: “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.”
Alat’s CEO, Amit Midha, added: “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.”
In its most recent financial report, Lenovo confirmed that its Intelligent Devices Group (IDG), which comprises PCs and tablets among other devices, saw revenues rise 15%, exceeding expectations. Its Infrastructure Solutions Group (ISG) revenue saw an even bigger 65% year-over-year increase thanks to continued support for AI.