On January 8, 2025, Lenovo Group Limited (SEHK: 992，ADR: LNVGY), a global technology leader, and Alat, a company under Saudi Arabia's Public Investment Fund (PIF), successfully completed the investment of a three-year US$2 billion non-interest-bearing convertible bond and entered into a strategic cooperation agreement to be announced in May 2024. This marks the official launch of the cooperation between the two parties in the Middle East and Africa, and the development of Lenovo Group's business in the Middle East market is expected to be significantly accelerated in 2025, promoting its global business transformation and layout optimization.
After the completion of the transaction, both parties will give full play to their respective advantages, and jointly cultivate the local and regional markets to realize mutual benefits and win-win results. Lenovo will leverage its world-leading supply chain, technology and manufacturing capabilities to help create a large number of jobs in Saudi Arabia on the basis of consolidating its existing business in the Middle East and Africa, while Alat will help Lenovo precisely expand its market and enhance its business competitiveness by utilizing its extensive local network and deep market insights. According to IDC's forecast, the IT and enterprise services market in the Middle East and Africa is expected to reach nearly $38 billion in 2027, bringing abundant growth opportunities for Lenovo.
Lenovo plans to set up its Middle East and Africa regional headquarters in Riyadh, the capital of Saudi Arabia, and build a new sustainable manufacturing base. The site will rely on local R&D teams to create end-to-end "Made in Saudi Arabia" products and is expected to begin production in 2026, with an annual production capacity of millions of PCs and servers, thus strengthening Lenovo's global manufacturing network. In addition, the two sides also reached an agreement on business expansion, in which Lenovo's Riyadh headquarters will invest in flagship retail stores and increase investment in R&D, marketing and strategic cooperation in the Middle East and Africa.
Representatives from both sides highly recognized and expected the project. Mr. Yang Yuanqing, Chairman and CEO of Lenovo, said, "This partnership will give Lenovo more resources and financial flexibility to capitalize on the growth opportunities in Saudi Arabia and the Middle East and Africa region, thereby accelerating our transformation. Lenovo will leverage its supply chain and technology strengths to help Saudi Arabia realize its Vision 2030."Amit Midha, CEO of Alat said, "We are honored to be a strategic investor in Lenovo and look forward to unlocking its potential in the MEA region."
News source: Pengpai News