In a move that solidifies Saudi Arabia’s growing status as a technology manufacturing hub, HP has launched a major initiative to build millions of computers within the Kingdom.
The US tech giant has partnered with SAMI Advanced Electronics, a subsidiary of the nation’s Public Investment Fund (PIF), and manufacturing powerhouse Foxconn.
A new factory in Riyadh, part of a project dubbed “Remal,” is already operational and will initially produce AI-focused desktop PCs for enterprise customers before expanding its scope.
Representing a significant victory for the Kingdom’s “Saudi Made” initiative and its ambitious Vision 2030 plan, the deal helps diversify the national economy beyond oil.
For HP, the partnership is a strategic pivot toward supply chain diversification and a deeper engagement with the rapidly growing Middle East and Africa (MEA) market.
Fadle Saad, HP’s Managing Director for the region, acknowledged the facility’s potential, telling Semafor, “We are able to scale this facility very quickly.” While the initial investment amount remains undisclosed, the project is expected to create thousands of jobs by 2027.
A Pillar of Vision 2030: The ‘Saudi Made’ Tech Push
Aligning with the Kingdom’s ambitious Vision 2030 goals, the new facility is a cornerstone of a national strategy to attract foreign direct investment and localize advanced manufacturing.
The “Saudi Made” program aims to build a robust industrial base, reduce import dependency, and create high-skill jobs for its young population. This isn’t just about assembly; it’s about creating an entire ecosystem.
HP’s investment, for instance, also includes a new AI R&D Center of Excellence in Dhahran, tasked with developing sophisticated Arabic large language models, a crucial step toward building sovereign AI capabilities.
This national strategy is backed by the immense capital of the PIF, which has been instrumental in creating new champions to drive growth.
The AI-focused entity Humain, for example, is spearheading a staggering $77 billion AI infrastructure plan, complemented by a $10 billion venture fund, aiming to capture a significant share of the global AI market.
Its CEO, Tareq Amin, captured the urgency of this mission, saying, “The world is hungry for capacity. There are two paths you could take: you take it slow and we are definitely not taking it slow, or you go fast.”
This ambition is fueled by partnerships with a slate of US tech leaders, including a more than $5 billion ‘AI Zone’ with Amazon Web Services and major chip supply deals with Nvidia and AMD.
Nvidia’s CEO, Jensen Huang, has framed such national projects as essential, noting, “AI, like electricity and internet, is essential infrastructure for every nation.”
HP Follows Lenovo in Building a Saudi Production Hub
HP’s entry into Saudi manufacturing follows a similar landmark deal that set a powerful precedent.
In January, ALAT, another PIF-backed company with a mandate to invest $100 billion in technology by 2030, finalized a US$2 billion strategic collaboration with Lenovo to establish a regional headquarters and a manufacturing facility in Riyadh for PCs and servers.
That plant is slated to begin production by 2026. Yuanqing Yang, Lenovo’s Chairman and CEO, highlighted the mutual benefits, saying, “We are excited to have Alat as our long-term strategic partner and are confident that our world-class supply chain, technology, and manufacturing capabilities will be a benefit to KSA.”
Parallel moves by two of the world’s largest PC makers signal a clear trend. Involvement from world-class partners like Foxconn, the world’s largest electronics contract manufacturer, and SAMI Advanced Electronics, a regional leader since 1988, adds significant operational credibility.
This activity is also unfolding amid intense regional competition. The United Arab Emirates, through its state-backed entity G42, is pursuing its own massive AI campus and diversifying its chip suppliers beyond Nvidia, underscoring a high-stakes race for technological supremacy in the Gulf.
G42’s deep ties with US firms, cemented by a $1.5 billion Microsoft investment, show how critical American technology is to these national ambitions.
Beyond PCs: Forging a Regional Supply Chain and Logistics Hub
HP’s strategy extends beyond simply manufacturing computers. The company is designating Saudi Arabia as a key supply chain hub, a resiliency effort developed after the global shipping strains experienced during the pandemic.
For many global tech firms, this represents a “China+1” strategy, de-risking operations by establishing robust manufacturing capabilities outside of East Asia.
By producing locally, HP can more efficiently serve customers across the MEA region, reducing logistics costs and delivery times. This aligns perfectly with the Kingdom’s own plans to fashion itself as a premier trade and logistics hub, supported by massive investments in new ports, airports, and a national airline.
A growing presence of US tech firms, from chipmakers like Groq to cloud giants like AWS, creates a virtuous cycle, attracting more component suppliers and specialized talent to build a self-sustaining ecosystem.
The trend extends beyond IT hardware, as demonstrated by the today’s announcement from US solar tech firm Nextracker, which is also forming a local joint venture for manufacturing.
While acknowledging the current landscape, HP’s leadership is betting on the Kingdom’s rapid development.
As Fadle Saad told Semafor, “Maybe today [Saudi Arabia] is not the most competitive setup, but we believe it will be very soon.” This long-term vision, shared by a growing list of American tech giants, is rapidly transforming Saudi Arabia from an oil economy into a diversified, technology-powered player on the global stage.
