Yang Yuanqing: Lenovo's Middle East business will grow 2 to 3 times, with customers favoring Lenovo's liquid cooling technology.

At the performance communication meeting in the third quarter of 2024, Yang Yuanqing, Chairman and CEO of LENOVO GROUP, stated that the company plans to grow its business in the Middle East by 2 to 3 times over the next few years. Despite the impact of tense geopolitical situation on the technology sector, LENOVO GROUP's business has shown strong resilience. Successful response to market challenges is mainly attributed to Lenovo's strategic expansion in the Middle East, further expanding its global manufacturing coverage. In 2024, LENOVO GROUP announced a long-term strategic partnership with Alat. Alat is fully owned by the Public Investment Fund of the Kingdom of Saudi Arabia, with a scale of $100 billion. LENOVO GROUP has obtained all necessary approvals from shareholders and regulatory authorities, and the issuance of convertible bonds and warrants was completed in early 2025. This significant collaboration will accelerate Lenovo's current growth trajectory in the Middle East and Africa markets, support the diversification of its global manufacturing network geographically, further accelerate the adoption of green energy, and drive investment in innovation and local markets. Yang Yuanqing stated that Lenovo will make good use of the deal with Alat, a subsidiary of the Saudi Sovereign Wealth Fund, to better develop the Middle East market. Lenovo not only plans to establish an advanced manufacturing base in the Middle East but also to set up the regional headquarters for the Middle East and Africa in Riyadh. Lenovo will also establish a customer-oriented innovation showcase center and open a new flagship retail store, driving rapid growth of all Lenovo's businesses locally, including PC, mobile phone, server, infrastructure, and solution businesses. On February 9, Alat and LENOVO GROUP jointly held a groundbreaking ceremony for the new manufacturing base in Riyadh. The new factory will be located in the "Riyadh Comprehensive Area" park operated by the Saudi Integrated Logistics Zone (SILZ), covering an area of 200,000 square meters, and will be designed, built, and operated with high standards of sustainable development. It is expected to produce millions of laptops, desktops, and servers annually. According to the plan, the new factory is expected to start production in 2026. Once completed, the factory will become an important part of Lenovo's global manufacturing network, which includes manufacturing bases in over 30 markets such as China, Argentina, Brazil, Germany, Hungary, India, Japan, Mexico, and the United States. At the same time, the new factory will enhance the resilience and flexibility of its global supply chain and provide more agile services to customers in the Middle East and Africa region. Yang Yuanqing revealed that he visited many government departments and clients during the period. Lenovo is very excited about the determination of local governments to transform and the growth opportunities it brings. For example, a digital government department spends billions of dollars annually, so Lenovo will seize such opportunities. There are many data centers to be built locally, and there is a strong interest in Lenovo's warm water liquid cooling technology. Lenovo is very confident that its business in the region will grow by approximately 2 to 3 times in the next few years.