February 22, 2024
Saudi Arabia Business

‘Alat’ aims to make Saudi Arabia a tech manufacturing hub

New PIF company to create 39,000 jobs by 2030

Mohammed bin Salman bin Abdulaziz Al-Saud, Saudi Crown Prince, Prime Minister, and Chairman of the Board of Directors of the Saudi Public Investment Fund (PIF), has launched ‘Alat’, a PIF company that will establish a cutting-edge global sustainable technology manufacturing hub in Saudi Arabia.

Focused on advanced industries and electronics, Alat aims to revolutionise the Saudi and global industrial sectors through strategic business units, including advanced industries, semiconductors, innovative health, intelligent appliances, smart devices, smart buildings, and next-generation infrastructure.

The new commercial entity, under the leadership of the Saudi crown prince, seeks to forge partnerships to transform the global industrial sector by providing sustainable solutions rooted in clean energy sources.

Several of these sources have achieved record-low generation costs in Saudi Arabia, positioning the nation as a leader in the clean energy realm.

Global ambition

Alat’s mission extends beyond catering to local demand, as it aspires to meet the evolving needs of the next generation of manufacturing on a global scale.

The company’s collaboration initiatives aim to fortify local supply chains, contribute to Saudi Arabia’s emergence as a global hub for advanced technological manufacturing, and bolster the nation’s capabilities in the technological sector.

Alat
Alat is under the leadership of Mohammed bin Salman bin Abdulaziz Al-Saud. Image: SPA

With a comprehensive plan to manufacture over 30 product categories crucial to vital sectors, including semiconductors, robotic systems, communication systems, advanced computers, digital entertainment products, healthcare systems, and heavy machinery, Alat is poised to become a significant player in the global tech market.

Domestic investment

Alat will strategically invest in enhancing Saudi Arabia’s technological sector.

This move is expected to make the nation more attractive to global investors while supporting local content development and fostering job opportunities.

Alat aims to generate 39,000 direct jobs in Saudi Arabia by 2030, aligning with PIF’s broader strategy to diversify the economy and achieve sustainable growth, as outlined in Saudi Vision 2030.

The company is expected to contribute an estimated $9.3 billion to Saudi Arabia’s non-oil GDP by 2030.

Alat’s commitment to collaboration with the Saudi private sector underscores its dedication to providing sustainable manufacturing solutions for international companies, tapping into clean energy resources and propelling Saudi Arabia toward carbon neutrality goals by 2060.

PIF’s overarching objective to be carbon-neutral by 2050 is mirrored in Alat’s vision, making it a key player in achieving sustainability targets.

The company’s establishment aligns with PIF’s strategy to expand into priority sectors and ultimately reinforce the non-oil economy—a central pillar of Saudi Vision 2030.

UAE-Saudi manufacturing scenario

The manufacturing industry in Saudi Arabia and the UAE has experienced significant growth driven by economic diversification initiatives.

Vision 2030 aims to reduce dependency on oil by fostering a robust manufacturing sector in Saudi Arabia, focusing on industries like petrochemicals, automotive, and aerospace.

The giant Arab nation has attracted foreign investments, promoting technological advancements and job creation.

Similarly, the UAE, particularly Dubai and Abu Dhabi, has prioritised manufacturing as a critical pillar of economic development. With advanced infrastructure and strategic location, the UAE fosters industries such as electronics, pharmaceuticals, and renewable energy, enhancing its global competitiveness.

Both nations are committed to fostering innovation and sustainability within their manufacturing sectors.

Featured image: Alat may contribute $9.3 billion to the non-oil GDP of Saudi Arabia by 2030. Image: Rob Lambert

    Arnold Pinto

    Arnold Pinto

    Arnold Pinto is an award-winning journalist with wide-ranging Middle East and Asia experience in the tech, space, aerospace, aviation, defence, luxury watchmaking, business, fashion, and automotive verticals. He is passionate about conserving endangered native wildlife globally and protecting the world’s oceans from plastic pollution, overfishing, and climate change. Arnold enjoys 4x4 off-roading, camping and exploring global destinations off the beaten track.
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