The News
HP is set to build millions of devices in Saudi Arabia with the majority earmarked for export into the wider Middle East and North Africa region, in a move that is a significant win for the kingdom’s plan to boost manufacturing and exports.
The US-based electronics maker has partnered with a subsidiary of Saudi Arabia’s sovereign wealth fund to develop a manufacturing facility in Riyadh, Fadle Saad, managing director of HP’s Middle East and North Africa headquarters, told Semafor. HP expects to be able to manufacture “millions” of devices in Saudi Arabia before 2030, and is already considering an expansion of its manufacturing plant in Riyadh.
“We are able to scale this facility very quickly,” Saad said. He declined to comment on how much the company will invest in Saudi Arabia.
Made in partnership with SAMI Advanced Electronics Company, which is owned by Public Investment Fund, HP will initially produce a desktop PC designed for artificial intelligence and focused on enterprise customers, according to Saad.
Know More
Saudi Arabia is investing heavily to develop an electronics manufacturing industry as part of its plan to diversify the economy, create jobs, and boost non-oil exports.
One of the key planks of that plan has been the creation of ALAT, a $100 billion PIF-controlled company that has already signed a deal with China’s Lenovo to build PCs in the kingdom. ALAT’s partnership with Lenovo, which included a $2 billion investment in the Chinese technology company, is expected to start production in 2026.
The moves are part of a broader strategy to promote local manufacturing — awarding a “Saudi Made” stamp that is already appearing on everything from Lucid cars to bottled water produced in the country.
HP is also designating Saudi Arabia as a key supply chain hub as part of its resiliency efforts developed in the wake of strains on shipping products around the world during the COVID-19 pandemic, Saad said.
That taps into the kingdom’s plans to fashion itself as a key trade and logistics hub, investing in new infrastructure like ports and airports, and creating a new airline.
“Maybe today [Saudi Arabia] is not the most competitive setup, but we believe it will be very soon,” Saad said.
Notable
- Saudi Arabia’s non-oil exports have been picking up, driven by re-exports, according to recent government data.
- FedEx has made Saudi Arabia a regional hub as it deepens a bet on the country’s growing role in global logistics, Bloomberg reported.