Lenovo to Produce Millions of PCs and Servers in Saudi Arabia by 2026
In a few months, you may notice that your computer is "made in KSA". Don't be surprised. Chinese tech giant Lenovo will start producing millions of PCs and servers in its Saudi Arabian factory by 2026. This is the result of a $2 billion investment by the Saudi public investment fund, Alat, in the Chinese company. The investment took the form of zero-coupon convertible bond subscriptions. If the conversion is successful, the Saudi fund will hold an 11% stake in Lenovo.
This operation is a win-win. For Lenovo, it will have the resources to accelerate its transformation and strengthen its global footprint. For Saudi Arabia, it will have a place in a value chain that involves technology transfer while creating thousands of jobs. The kingdom expects its investment in Lenovo to create 15,000 direct jobs and add $10 billion to its GDP by 2030.
In addition to setting up a factory, the PC and server manufacturer plans to launch an R&D center in Riyadh, which will serve as its regional headquarters for the Middle East. The kingdom will join the company's global manufacturing network, which includes over 30 sites worldwide, including in Argentina, Brazil, China, Germany, Hungary, India, Japan, Mexico, and the United States.
Attracting such companies requires significant financial means. This is a real entry barrier for a country like Tunisia, which cannot offer such a proposal. We must attract mid-sized industrial companies that are in a growth phase. Our proximity and low labor costs can be valuable assets to them.
