PIF sets up new company to manufacture robotic systems and heavy machinery

Saudi Arabia’s Public Investment Fund has set up Alat, a new company that will seek to make the kingdom a global centre for sustainable technology manufacturing.

Alat will focus on manufacturing products for domestic and international markets within seven business units, the PIF said. The units are advanced industries, semiconductors, smart appliances, health, devices, buildings and next generation infrastructure.

It will manufacture more than 30 product categories including robotic systems, communication systems, advanced computers and digital entertainment products, as well as advanced heavy machinery used in construction, building and mining. The company, chaired by Saudi Crown Prince Mohammed bin Salman, aims to create 39,000 direct jobs in Saudi Arabia and achieve a direct non-oil gross domestic product contribution of $9.3 billion by 2030.

It seeks to “enhance the capabilities of the Saudi technology sector [and] increase its contribution to local content”, the PIF said. Alat will build partnerships to provide sustainable industrial solutions based on clean energy sources.

“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 centre for advanced technological manufacturing,” the fund said.

Saudi Arabia, the Arab world’s largest economy, is taking ambitious measures to diversify its economy away from oil as part of its Vision 2030 initiative, with technology a key element of the strategy.

In August, the kingdom launched a $200 million fund to invest in domestic and international high-tech companies as part of its economic diversification plan.

The PIF, one of the world’s largest sovereign wealth funds, is playing a key role in implementing Vision 2030 by investing heavily in developing the kingdom’s non-oil sector.

The fund said the creation of Alat aligns with its strategy to expand in priority sectors while strengthening local supply chains to enable economic diversification and sustainable growth.

Alat will seek to boost innovation, manufacturing, and research and development, and localise expertise in the industrial and electronics sectors.