With checkbook and alliances: This is how Saudi Arabia wants to become a new world technology center

Alat, the company created by the Saudi sovereign wealth fund earlier this year, has announced that it is partnering with Softbank, Carrier, Dahua and Tahakom and will invest 100 billion to improve technological capabilities in the Kingdom by 2030.

Saudi Arabia wants to be on the technological map. And he wants to have a prominent position. At the beginning of February, the prince of the Kingdom and the president of the board of directors of the country’s sovereign fund (Public Investment Fund, PIF), Mohammed bin Salman, announced the launch of Alat, a new technology that was born with the objective of ” to create a world-class manufacturing hub in the Kingdom of Saudi Arabia.”

Today, the new technology company has announced another step towards its goal through four collaborations, with Softbank Group, Carrier Corporation, Dahua Technology and Tahakom. During the Mobile World Congress being held next week in Barcelona, the company intends to announce a fifth alliance.

Likewise, the Saudi sovereign fund company has also announced its plans to invest $100 billion by 2030 to improve the capabilities of the technology sector. In addition, they affirm, it will seek to benefit the private sector and its commercial environment through its commercial and associative systems with the main international technology manufacturers.

Collaborations

Specifically, Amit Midha, recently appointed Global CEO of Alat, and former Dell executive, has indicated that thanks to the partnership with Softbank , an advanced industrial automation business will be established in Saudi Arabia . This business will manufacture innovative industrial robots. The partners will invest up to $150 million to create a fully automated manufacturing and engineering center that will meet both local and global demand. This manufacturing plant will be operational by December 2024.

For its part, through the alliance with Carrier Corporation , a climate and smart energy solutions company, it will develop an advanced manufacturing and R&D facility with the aim of decarbonizing emissions in buildings and increasing their energy efficiency. With the agreement, it is expected that more than 5,000 jobs will be created in the region.

In the case of Dahua Technology, a security manufacturer, it will begin manufacturing technological products in the region through a new joint venture with Alat. This initiative will focus on producing and marketing security and surveillance solutions applicable in smart cities, smart buildings and enterprise applications. Alat and Dahua Technology will invest $500 million to develop a global business focused on artificial intelligence . These devices will be developed in a state-of-the-art manufacturing facility in Saudi Arabia.

And finally, through the Saudi Arabian Technology and Security Comprehensive Control Company (Tahakom), Alat will manufacture smart city and mobility solutions.

In this way, Saudi Arabia seeks to make a place for itself on the map of the world’s largest technology companies, since as stated in its presentation, they aspire to be a global center for the manufacturing of advanced technologies and electronics in a sustainable way.

In total it has seven strategic business units: advanced industries and semiconductors, smart home appliances, health, smart devices and buildings, and next-generation infrastructure. First of all, it will manufacture products from 34 categories in seven business units , each of them led by recognized experts in the technology industry.

At its head is the president of the board of directors of the sovereign fund and also prime minister, Mohammed bin Salman, whose intention is to attract investment to his country’s technology sector. And as CEO Alat chose former Dell Technologies executive Amit Midha.

In total, it is estimated that Alat will allow the creation of 39,000 direct jobs in Saudi Arabia and that its contribution to non-oil GDP will amount to 9.3 billion dollars in 2030.

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