02/01/2024
HRH Crown Prince launches 'Alat' to Make Saudi Arabia a Global Center for Electronics and Advanced Industrials
Riyadh, Kingdom of Saudi Arabia, February 1st, 2024 — His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al-Saud, Crown Prince, Prime Minister, and Chairman of the Board of Directors of the Public Investment Fund (PIF), announced today the launch of “Alat”, a PIF Company, which will create a global sustainable technology manufacturing hub in Saudi Arabia focused on advanced industrials and electronics. Alat will focus on seven key Strategic Business Units: advanced industrials, semiconductors, smart health, smart appliances, smart devices, smart buildings, as well as next generation infrastructure and create products both for Saudi Arabia and the world.
The company will build partnerships to enable the transformation of the industrial sector globally, by providing sustainable industrial solutions based on clean energy sources, some of which have achieved record low generation costs in Saudi Arabia. These partnerships will help meet commercial demand, keep pace with the needs of the next generation of manufacturing, enhance the strength of local supply chains and contribute to making Saudi Arabia a global center for advanced technological manufacturing.
Alat will manufacture more than 30 product categories that will serve vital sectors. These include semiconductors, robotic systems, communication systems, advanced computers, digital entertainment products, healthcare systems, and advanced heavy machinery used in construction, building and mining.
Alat, whose Board of Directors is chaired by His Royal Highness Crown Prince, will invest to enhance the capabilities of the Saudi technological sector, benefiting from the rapid development of this sector in Saudi Arabia, increasing the nation’s attractiveness and its ability to create investment opportunities as well as supporting local content. The company will also empower the private sector and enhance the commercial environment through its business systems and partnerships with leading international manufacturers. The company will also strengthen innovation, research and development, and localize expertise in the industrial and electronics sectors by developing local talent & upgrading job opportunities. Alat aims to create 39,000 direct jobs in the Kingdom by 2030, in line with PIF’s strategy that aims to diversify the economy and achieve sustainable growth, in line with Saudi Vision 2030. The direct non-oil GDP contribution that Alat will make by creating a global sustainable technology manufacturing hub in Saudi Arabia focused on advanced industrials and electronics will reach US$9.3 billion by 2030.
Alat, in cooperation with the Saudi private sector, will focus on providing sustainable manufacturing solutions for international companies by accessing clean energy resources in Saudi Arabia to reach local carbon neutrality goals by 2060 – PIF’s own goal is to be carbon neutral by 2050 – in addition to enabling those global industrial companies to benefit from the competitive advantages of the Saudi economy, its unique geographical location and its investments in the technical sector. The establishment of Alat aligns with PIF’s strategy to expand in sectors that are priorities, while strengthening local supply chains. Alat will have a fundamental role in strengthening the non-oil economy – a key PIF pillar – in line with Saudi Vision 2030.
Source: Alat
