Saudi Arabia's Public Investment Fund has set up Alat, a new company that will seek to make the kingdom a global hub for sustainable technology manufacturing.
Alat will focus on manufacturing products for domestic and international markets within seven business units, the PIF said in a statement on Thursday. These include advanced industries and semiconductors, as well as smart appliances, health, devices and buildings, as well as next generation infrastructure.
It will manufacture more than 30 product categories including robotic systems, communication systems, advanced computers and digital entertainment products, as well as advanced heavy machinery used in construction, building and mining.
The company, chaired by Saudi Crown Prince Mohammed bin Salman, aims to create 39,000 direct jobs in Saudi Arabia and achieve a direct non-oil gross domestic product contribution of $9.3 billion by 2030.
It seeks to "enhance the capabilities of the Saudi technology sector, increase its contribution to local content – benefiting from the rapid development of this sector – increasing the nation’s attractiveness and its ability to create investment opportunities", the PIF said.
The company will build partnerships to provide sustainable industrial solutions based on clean energy sources.
"These partnerships will help meet commercial demand, keep pace with the needs of the next generation of manufacturing, enhance the strength of local supply chains and contribute to making Saudi Arabia a global centre for advanced technological manufacturing," the sovereign wealth fund said.
Saudi Arabia, the Arab world’s largest economy, is taking ambitious measures to diversify its economy away from oil as part of its Vision 2030 initiative, with technology a key element of the strategy.
The PIF, one of the world’s largest sovereign wealth funds, is playing a key role in implementing Vision 2030 by investing heavily in developing the kingdom's non-oil sector.
The fund outpaced Singapore’s GIC, which ranked as the top investor for 2022.
The PIF currently has assets worth $700 billion with more than 644,000 indirect and direct jobs created, according to its website.
The establishment of Alat "aligns with PIF’s strategy to expand in sectors that are priorities, while strengthening local supply chains to enable economic diversification and sustainable growth – in line with Saudi Vision 2030", the statement said.
Alat will seek to boost innovation, manufacturing, and research and development, and localise expertise in the industrial and electronics sectors.