Saudi PIF-backed Alat signs global pacts to boost technology manufacturing
Alat, a sustainable technology manufacturing company backed by Saudi Arabia’s Public Investment Fund, has joined with four global companies to boost the sector in the kingdom.
The company, which aims to invest $100 billion by 2030 to bolster the technology sector, has teamed up with SoftBank Group, Carrier Corporation, Dahua Technology and Saudi Technology and Security Comprehensive Control Company (Tahakom).
Under the agreements, Alat will offer sustainable manufacturing to help its partner companies reduce their emissions and move towards carbon-zero manufacturing.
“Alat’s mandate is focused on harnessing the kingdom´s solar, wind and green hydrogen clean energy,” said Amit Midha, global chief executive of Alat.
“We are passionately using technology to transform businesses, leveraging cutting-edge AI technology and Fourth Industrial Revolution technologies for manufacturing.
“This is not only using clean energy, but applying sustainability measures to all our operations, buildings, logistics and supply chain with sustainability at the core of everything we do.”
Saudi Crown Prince Mohammed bin Salman announced the launch of Alat this month.
It 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.
Alat and investment holding company SoftBank will set up an industrial automation business in the kingdom that will produce robots.
They will invest nearly $150 million to establish a fully automated manufacturing and engineering centre that is expected to open in December.
Florida-based intelligent climate and energy solutions company Carrier has agreed to develop a manufacturing and research and development centre in the kingdom in collaboration with Alat.
The new centre aims to decarbonise emissions in buildings and increase their energy efficiency. It is expected to create more than 5,000 local jobs.
Alat said it would focus on manufacturing products for domestic and international markets within seven business units: advanced industries; semiconductors; smart appliances; health; devices; buildings; and next-generation infrastructure.
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.
Alat and security systems company Dahua Technology will invest $200 million to establish a secure and compliant global business for products, called Alat AIVisio Technology, and a plant in Saudi Arabia.
And Alat has joined Tahakom to advance smart mobility and intelligent cities solutions.
The PIF, one of the world’s largest sovereign wealth funds, is playing a key role in enacting Vision 2030 by investing heavily in developing the kingdom’s non-oil sector. The fund was the top global sovereign investor last year, spending $31.6 billion in 49 deals, up 33 per cent from 2022, industry specialist Global SWF said.
The fund outpaced Singapore’s GIC, which ranked as the top investor for 2022.