Lenovo Group (00992) has announced the official start of construction for its regional headquarters in the Middle East and Africa, located in the iconic Majdoul Tower in Riyadh, Saudi Arabia. This move follows the commencement of the Lenovo factory in Saudi Arabia earlier this year in February. The new headquarters marks a significant step in Lenovo's AI strategy deployment within the Middle East.
In recent years, Saudi Arabia has placed AI at the forefront of its Vision 2030 initiative as part of its strategy to diversify its economy and modernize society, with an objective to become a global leader in AI by 2030 and to establish a leading AI innovation hub worldwide.
As a vital component of Riyadh's emerging innovation center, the regional headquarters will be fundamentally focused on AI strategy. Scheduled to be fully operational by March next year, the headquarters will concentrate on three key areas: AI research collaboration, the implementation of intelligent solutions, and the training of AI talents, effectively acting as a central hub for advancing AI innovation in partnership with local eco-partners in Saudi Arabia.
The choice of Majdoul Tower as the location is advantageous for liaising with subsidiaries of the Saudi Public Investment Fund (PIF), government institutions, and global tech partners, thereby integrating deeply into the local innovation resource network to support the clustered development of Saudi Arabia's AI industry.
Importantly, the construction of the regional headquarters is synergistic with Lenovo's previous industrial setup in Saudi Arabia, forming an efficient AI ecological loop. Earlier in February, Lenovo partnered with the Saudi Alat Company to initiate an advanced manufacturing facility covering 200,000 square meters in Riyadh’s integrated logistics zone, expected to start trial production by 2026, achieving localized mass production of millions of laptops, servers, and smart devices. The new regional headquarters will work in coordination with this factory, emphasizing the customization of AI servers, edge computing devices, and other core hardware to meet the specific needs for AI infrastructure in smart cities, intelligent energy, and digital government sectors.
The launching of the regional headquarters construction represents a pivotal moment in Lenovo Group's journey in the Middle East and Africa, according to Lawrence Yu, the head of the regional headquarters. 「Establishing our regional headquarters in Riyadh not only deepens our commitment to the Kingdom of Saudi Arabia but also strengthens our collaboration with key partners to drive technological innovation and economic growth. This investment is far more than just a new office building; it signifies Lenovo's integration into the blueprint for Saudi Arabia’s future development. We are working together with Alat and the Public Investment Fund to build advanced manufacturing, research, and talent development capacities, positioning Saudi Arabia as a central hub for innovation, technology, and sustainable development in the region."
Currently, Saudi Arabia is accelerating its digital transformation through Vision 2030, prioritizing AI as a core driving force at the national strategic level. This spans various sectors from the construction of smart cities to AI optimization in renewable energy, as well as intelligent upgrades in healthcare and education, generating substantial market demand. Lenovo's proactive establishment of a regional headquarters strategically targets the anticipated boom in Saudi Arabia's AI industry, providing end-to-end support from AI hardware to solutions by integrating global technology resources with local market needs.
Additionally, the headquarters will create a platform for AI talent exchange and development, fostering a homegrown pipeline of AI professionals through technical training and joint research, thereby addressing the regional talent gap. Furthermore, Saudi Arabia's AI industrial cluster has attracted global AI giants to establish a presence. For instance, a strategic agreement signed between the U.S. and Saudi Arabia in 2025 includes over 40% of investments related to AI; the Saudi PIF has allocated billions of dollars specifically to support AI startups, including a $1.5 billion investment in AI reasoning chip company Groq and commitments from companies like Google, Oracle, and Salesforce totaling $80 billion for AI and cloud computing development in Saudi Arabia. As a significant partner in the global AI ecosystem and a hybrid AI provider, Lenovo is poised to become a vital player in Saudi Arabia's AI industry chain, enhancing its influence in the EMEA market.