Lenovo Completes US$2 Billion Investment And Strategic Collaboration With Alat

Global technology powerhouse Lenovo Group Limited and Alat – a KSA Public Investment Fund (PIF) company – announced in January this year the completion of the US$2 billion investment (via three-year zero-coupon convertible bonds) and strategic collaboration that had been initially announced in May 2024. 

The deal is set to enable Lenovo to further accelerate its ongoing transformation, enhance its global presence, and increase geographic diversification of its manufacturing footprint. Besides building on its business in the MEA region and capitalizing on the growth opportunities presented by it, Lenovo will also bring its world class supply chain, technology, and manufacturing capabilities to Saudi Arabia, and thereby support the creation of thousands of new jobs. 

Lenovo will also be establishing its regional MEA headquarters in the KSA capital of Riyadh, as well as a sustainable manufacturing facility in the Kingdom to serve customers in the region and beyond. The factory, which will manufacture millions of personal computers and servers every year using local research and development (R&D) teams for fully end-to-end “Saudi Made” products, is expected to begin production by 2026. 

Alat and Lenovo have also embarked on a business development partnership that will leverage the former’s extensive relationships in the region and local market insight. Plus, the regional headquarters will also invest in flagship retail space in Saudi Arabia, while also expanding investments in R&D, as well as marketing and strategic partnerships in both KSA and the MEA region. 

In a statement, Yuanqing Yang, Chairman and CEO of Lenovo, said, “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.” 

Amit Midha, CEO at Alat, added, “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.”