Lenovo, a Chinese tech giant, plans to set up a regional headquarters in Saudi Arabia.
Lenovo Strengthens Presence in Saudi Arabia with New Regional Headquarters
Lenovo Group, the multinational technology company, has announced plans to establish a regional headquarters (RHQ) in Saudi Arabia, as part of its strategic partnership with ALAT, a company owned by the Public Investment Fund. This move is aimed at reinforcing Lenovo's commitment to Saudi Arabia's long-term development and aligns with the country's Vision 2030.
The RHQ, located in Al Majdoul Tower, Riyadh, will play a key role in driving Lenovo's wider regional strategy. The strategic partnership includes investments in a flagship retail location, a VIP customer center, research and development, marketing initiatives, and strategic collaborations throughout Saudi Arabia.
Lenovo and ALAT have already begun construction on a 200,000 sq. meters advanced manufacturing plant in Riyadh Integrated. This facility, located within the Special Integrated Logistics Zone, is expected to produce millions of "Saudi Made" devices by 2026.
Matt Dobrodziej, President of Lenovo Europe, Middle East, and Africa, stated that the partnership aims to support industrial diversification, accelerate digital transformation, and enable sustainable economic growth in Saudi Arabia.
The setup of Lenovo's regional headquarters in Saudi Arabia is in line with the government-backed Riyadh regional headquarters program launched in 2021. The program offers incentives such as a 30-year corporate income tax exemption and withholding tax relief, alongside regulatory support for multinationals operating in the Kingdom.
This latest move strengthens the bilateral relations between Saudi Arabia and China, with the Kingdom being the largest trading partner of China in the Middle East since 2001. China and Saudi Arabia have strategic partnerships in various sectors such as energy, finance, and the Belt and Road Initiative.
The news of Lenovo's expansion comes as almost 600 international companies have set up bases in the Kingdom since 2021, including Northern Trust, IHG Hotels & Resorts, and Deloitte. With these strategic initiatives, Lenovo's projected contributions to Saudi Arabia's non-oil gross domestic product could reach up to $10 billion by 2030, as mentioned by Dobrodziej.
In conclusion, Lenovo's establishment of a regional headquarters in Saudi Arabia marks a significant step in the company's global expansion and its dedication to supporting the Kingdom's economic growth and digital transformation.
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