Saudi-made PCs, smartphones, and data servers will hit the shelves sometime this year, as Lenovo’s Riyadh factory moves from trial runs to its first full commercial production phase, Lenovo’s Middle East, Africa, Turkey, and Pakistan President Tarek Alangari told Al Eqtisadiah. The facility is expected to serve as a regional export hub, with the potential to eventually supply markets as far as Europe as production scales.
Build big, then build bigger: The first phase of the 200k sqm Riyadh facility involves more than SAR 2 bn in investment, with output targeted at 2 mn units annually within 1.5-2 years, Alangari said. A second phase — depending on demand — aims to scale capacity up to 8 mn units a year, which could make it one of Lenovo’s largest sites globally outside its main China facility.
The full device lineup: The factory will have four production lines covering smartphones (including Motorola devices), laptops, desktops, and high-performance servers. The server output is geared to support AI and digital infrastructure demand.
Why it matters
Cutting delivery times: One of the main issues regional companies and government entities face is long fulfillment times for electronics — since products made in China, the US, or Brazil can take months to arrive — which slows down projects and affects service quality. Having production in Riyadh, Alangari noted, cuts those delivery times significantly and makes supply chains more efficient, speeding up access to products in Saudi Arabia and the wider region.
Fast enough for Europe, close enough for the Gulf: Beyond domestic use, countries in the region, including Turkey and the Gulf states, are showing interest in sourcing electronics and servers closer to home to avoid long waits, Alangari said. If delivery speed makes the Riyadh plant more competitive, Saudi-made products could even be shipped to markets like the UK and Germany, especially as capacity expands in future phases, he added.
How we got here
PIF-backed entry into Lenovo: PIF-backed Alat made a USD 2 bn strategic investment in Lenovo in January 2025, which gave it a 12% stake in the Chinese PC and server maker. The investment was predicated on deep localization including setting up the manufacturing hub, a now-running RHQ, and workforce development.
And the Riyadh team is still growing: The company appointed Salman Abdulghani Faqeeh as vice president and general manager to lead its operations across Saudi Arabia. He reports to Alangari, who was appointed in January, joining a C-suite bench that includes Lawrence Yu (head of RHQ) and Zoran Radumilo (CTO for Saudi Arabia).