HP’s first advanced manufacturing facility in Saudi Arabia underscores the kingdom’s AI ambitions, but what does it mean for the region’s tech ecosystem?
HP Inc. has announced the launch of its first advanced manufacturing facility in Riyadh, a move positioned as part of the kingdom’s Vision 2030 initiative to diversify its economy and strengthen local production capabilities. Initially set to produce desktop computers, the facility is expected to expand into laptops and printers, with a key focus on artificial intelligence and research-driven manufacturing.
A key component of HP’s investment is the launch of this high-tech manufacturing facility under the “Made in Saudi Arabia” initiative. The company aims to increase local production to serve domestic and regional markets while enhancing supply chain efficiency by reducing reliance on external manufacturing. By localising production, HP seeks to streamline logistics, accelerate product availability, and reinforce the country’s position as a growing technology hub.
This strategic expansion highlights Saudi Arabia’s growing role as a technology and AI hub, aligning with broader ambitions to position the region as a leader in innovation. By localising production, HP aims to serve both domestic and regional markets more efficiently, reducing reliance on external supply chains and accelerating technology adoption in the Middle East and Africa.
The announcement was first made in Asharq Al-Awsat, reinforcing HP’s commitment to the Saudi market and its broader technological transformation. Alongside manufacturing, HP is establishing a Centre of Excellence for AI and R&D in Dhahran, focusing on AI-driven solutions in key industries such as healthcare, smart cities, and energy. The centre signals HP’s investment in artificial intelligence, potentially influencing the development of smarter digital infrastructure in the region.
Riyadh, the capital of Saudi Arabia, is the country’s political and economic centre, rapidly transforming into a global hub for business and technology. With ambitious infrastructure projects, a growing financial sector, and government-backed initiatives like Vision 2030, the city has positioned itself as a key player in the Middle East’s technology landscape. Riyadh’s expanding industrial zones and innovation districts offer an ideal environment for companies like HP to invest in manufacturing and research, ensuring strategic access to both local and regional markets.
Located in Saudi Arabia’s Eastern Province, Dhahran is a major hub for energy and technology, home to Saudi Aramco’s headquarters and the prestigious King Fahd University of Petroleum and Minerals. With a well-developed infrastructure, world-class research institutions, and access to skilled talent, the city provides an ideal base for HP’s AI-driven research and innovation efforts.
HP’s choice of Saudi Arabia for this investment aligns with the kingdom’s push to attract high-tech industries through government incentives, tax benefits, and investment-friendly policies. The move also reflects a broader trend among global tech companies diversifying their manufacturing bases away from traditional hubs like China to enhance supply chain resilience. Additionally, partnerships with Saudi entities, universities, and government bodies could strengthen HP’s foothold in the region’s evolving AI and manufacturing ecosystem.
With thousands of jobs expected to be created by 2027, the broader impact on Saudi Arabia’s tech ecosystem and workforce development is substantial. HP has also pledged to enhance digital skills among young Saudis through AI-focused educational initiatives, training teachers and collaborating on AI-integrated curricula.
For the global tech industry, the key takeaway is HP’s positioning within the Saudi AI and manufacturing ecosystem. Rather than merely expanding its supply chain, HP’s move represents a strategic alignment with the kingdom’s push for technological leadership, making Riyadh a potential hub for future AI-driven innovations.
