Alat has announced a strategic partnership with SoftBank Group Corp. to establish a next-generation industrial automation business in the Kingdom of Saudi Arabia that will manufacture groundbreaking industrial robots. Alat is a Public Investment Fund (PIF) company launched on Feb. 1, 2024, by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, Chairman of the Board of Directors of Alat.

Specifically, Alat, headquartered in Riyadh, has been established to create a global champion in electronics and advanced industrial segments. It was mandated to create world-class manufacturing enabled by global innovation and technology leadership. With an allocated investment budget of US$100 billion, Alat is partnering with global technology leaders. Mainly, they will transform industries while establishing world-class businesses in the Kingdom, powered by clean energy.

Create Groundbreaking Industrial Automation Business

The company takes pride in its joint venture (“JV”) with SoftBank Group. Specifically, the JV will manufacture industrial robots for various manufacturing and assembly processes that will radically transform manufacturing. Mainly, the partners will invest up to US$150 million to establish a fully automated manufacturing and engineering hub in Riyadh that will serve local and global demand. Specifically, the first factory is targeted to open in Dec. 2024.

Amit Midha, CEO of Alat, said: “We want this to be the start of a game-changer for manufacturing around the world. Together with SoftBank Group, we see an immense market opportunity for robotics both in the Kingdom, the Gulf, and globally. With this initial set-up, we predict a contribution of 1 billion dollars to Saudi Arabia GDP by 2025. Our ambition is to fundamentally transform industrial manufacturing by robots, manufactured in the Kingdom.”

Masayoshi Son, Chairman and CEO of SoftBank Group, said: “The combination of Saudi Arabia’s vision, economic growth, and leading logistics location coupled with abundant access to green energy and Alat’s mandate to manufacture sustainably, made this strategic partnership between us very compelling. Today’s announcement marks a historic milestone for how future manufacturing will take place.”

Mainly, the new JV will build industrial robots based on intellectual property developed by SoftBank Group and its affiliates. Specifically, these robots will perform tasks with minimal additional programming. They are ideally suited for industrial assembly and applications in manufacturing and production. Also, the robot manufacturing factory that the JV will create in the Kingdom is a lighthouse factory. It will use the latest technology to manufacture unprecedented next-generation robots to perform a wide variety of tasks.

By 2030, Saudi Arabia’s extensive infrastructure investments will be the foundation to accelerate the adoption of Fourth Industrial Revolution applications in the Kingdom, enhancing supply chains and logistics. By 2035, some 32,000 factories are expected to be operating in the country powered by clean energy and enabled with leading-edge technology.

Generally, Saudi Arabia is one of the most intense sunlight regions in the world. It receives around 105 trillion kilowatt hours a day, which is equivalent to 10 billion barrels of raw oil in energy terms. Alat is focused on transforming manufacturing making it carbon zero manufacturing, with sustainability at the heart of everything.