(Yicai) Jan. 8 -- China’s Lenovo Group, the world’s biggest maker of personal computers, has completed a USD2 billion deal with Saudi Arabia's Public Investment Fund unit, Alat Enate, which received zero-coupon convertible bonds in return for the investment.

Lenovo said its business in the Middle East is expected to accelerate further this year, thereby enhancing its global influence and reinforcing its diversified global manufacturing footprint, as well as speeding up business transformation.

The deal is part of a strategic cooperation agreement announced last May. Beijing-based Lenovo will also establish a regional headquarters for the Middle East and Africa in Riyadh, the Saudi capital, and construct a new sustainable manufacturing base in the country to serve both regional and global customers.

Lenovo said it will introduce its world-class supply chain, technology, and manufacturing capabilities to Saudi Arabia, and will also help to create thousands of jobs.

The new plant is scheduled to start production in 2026, with anticipated annual output of several million PCs and servers. It will also be a key component in Lenovo's global manufacturing network, which spans over 30 markets including Argentina, Brazil, China, Germany, Hungary, India, Japan, Mexico, and the United States.

Additionally, Lenovo and Alat have entered into a business expansion agreement that includes investing in a flagship retail store in Riyadh, as well as increasing investments in research and development, marketing, and strategic partnerships in the MEA region.

The MEA’s information technology and enterprise services market may be worth nearly USD38 billion by 2027, according to a projection by IDC.

Lenovo’s shares [HKG: 0992] closed down 2 percent at HKD9.53 (USD1.23) each in Hong Kong today.

Editor: Tom Litting