Saudi Arabia’s ambitions to become a sustainable manufacturing hub took a significant leap forward with a new partnership between the Public Investment Fund (PIF)’s subsidiary Alat and tech giant Lenovo. 

The deal, valued at $2 billion, will see Alat invest in a Lenovo convertible bond. In return, the computer maker will open a manufacturing facility and establish a regional headquarters in Saudi Arabia. The investment is expected to create 15,000 direct jobs locally and add $10 billion to the gross domestic product by 2030.

“We’re incredibly proud to become a strategic investor in Lenovo,” said Amit Midha, CEO of Alat. 

“With the establishment of a regional headquarters in Riyadh and a world class manufacturing hub, powered by clean energy, we expect the Lenovo team to further their potential across the MEA region.”

The new facility aligns with Saudi Arabia’s Vision 2030 goals. Attracting foreign investment has become a key focus for the country under Crown Prince Mohammed Bin Salman’s plan to diversify the oil-dependent economy. 

“Through this powerful strategic collaboration, Lenovo will have significant resources and financial flexibility to further accelerate our transformation and grow our business in the MEA region,” said Yuanqing Yang, chairman and CEO of Lenovo. 

“Lenovo plans to build a tech and manufacturing hub in Saudi Arabia and will help define the future of the region as a center of innovation,” Yang added.

Meanwhile, Saudi Arabia’s $1 trillion PIF, which has become a prominent tech investor in recent years and using its heft to require foreign companies to invest in Saudi Arabia in return, has been named the world’s most valuable sovereign wealth with a brand value of $1.1 billion, according to UK-based strategic consultancy Brand Finance. 

The wealth fund secured the top spot in the list due to its diverse investment strategy, trust in its name, and brand awareness, along with being a catalyst for economic advancement in the kingdom. 

“PIF’s value is largely driven by high scores for the brand’s awareness, purpose, and commitment to positive growth,” said Brand Finance. 

Moreover, PIF was also ranked the second strongest sovereign wealth fund brand after Abu Dhabi Investment Authority.