HP among first movers set to build PCs in Saudi Arabia

Global IT company will also set up an AI and R&D centre in Dhahran, it said at the Leap technology event

HP's new manufacturing facility in Riyadh is scheduled to produce PCs, printers and other computer devices. AP

HP, the US global information and technology company, announced a series of AI investments in Saudi Arabia, including a manufacturing centre in Riyadh and an artificial intelligence research facility in Dhahran.

The company revealed its Made in Saudi investment initiative with its manufacturing complex that is set to produce PCs, printers and other computer devices, it said on Sunday at the kingdom's annual global technology event in Riyadh, Leap.

“We will start this year by building desktop PCs, and we want to be the first company that will build PCs in Saudi,” said Enrique Lores, president and chief executive of HP.

It will also invest in an AI and R&D centre of Excellence in Saudi Arabia's eastern coast of Dhahran to create commercial opportunities in the kingdom. The centre will focus on advancements in areas such as data analysis, robotic process automation and also advanced AI decision making capabilities.

“Over time, we will be expanding that to the rest of the portfolio to serve both the needs of the local country, but also to eventually serve the needs and the volumes that will be required in countries around Saudi Arabia,” he told The National. This is a pivotal step in HP's goals to expand and serve regional businesses with cutting-edge solutions, he added.

HP's goal of producing millions of devices locally is an investment addressing the Middle East and North Africa's growing market demand and rapidly evolving digital economy, which together are creating a need for manufacturing, the company said.

Enrique Lores, president and chief executive of HP, said the company plans to expand in the kingdom. Photo: HP

“It has the potential of becoming a manufacturing hub really driven by both the size of the local market, but also the geographical position we are in the intersection of Africa, Europe and Asia,” said Mr Lores.

The company's AI research and development arm in Dhahran will focus on solutions. “We are talking AI and AI applied to commercial and industrial processes,” he said.

“It's not about just developing models, it's about models that are specifically designed to address specific problems. This is really where we see the opportunity.”

One of the areas the research centre will look at is Arabic Large Language Learning Models (LLMs).

“How to use AI and optimise it for the Arabic language” is a priority, he said. This will be incorporated to needs of the kingdom, ranging from healthcare to energy sectors.

LEAP tech event in Saudi Arabia showcases multi-sensory experience to counter tech overload

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Mr Lores said that the third tier of HP's investment will focus on developing and attracting talent. The company plans to create thousands of jobs for local people by 2027 and further attract global business.

HP has already deployed several high impact education programmes to support the country's Vision 2030 goal of upskilling young people for jobs of the future, it said. This is part of its global initiatives such as the HP Cambridge EdTech fellowship and HP IDEA, which the company says has supported 600,000 people.

The US global IT company opened the hp Gaming Garage Lab at the Saudi Electronic University in June 2024. It also established online courses that award microdegrees from a National eLearning Centre.

“The overall transition the country is going through has made it a much more attractive place for foreign companies like us, to invest,” said Mr Lores.

Dell's new merge and fulfilment centre in Dammam can handle up to 600,000 units per year across all its product lines. Photo: Dell Technologies

Meanwhile, Lenovo and Saudi-based Alat also said on Sunday that they had broken ground at their new manufacturing base in Riyadh. The factory will be constructed on a 200,000 sqm campus site at Riyadh Integrated operated by Special Integrated Logistics Zone and will produce millions of “Saudi Made” laptops and desktops, as well as servers, the companies said in a statement.

The deal marks the companies' completion of a $2 billion investment (by three-year zero-coupon convertible bonds).

The new manufacturing centre is expected to begin production in 2026 and is projected to create up to 15,000 direct jobs and 45,000 indirect jobs. Lenovo will also set up a regional Middle East and Africa headquarters in Riyadh.

US technology company Dell also announced the opening of its first merge and fulfilment centre in Saudi Arabia on Sunday. Located in Dammam, it can handle up to 600,000 units per year across all Dell’s product lines. It also features a second touch manufacturing facility for product customisation of Dell’s servers to meet specific customer needs, the company said.