Lenovo Group Ltd, the world's largest personal computer maker, has reported a strong financial performance for the last quarter of 2024.

The Beijing-based company said revenue in the quarter, which ended on Dec 31, grew 20 percent year-on-year to $18.8 billion, marking the third consecutive quarter of double-digit growth as its investment in AI drives businesses forward. Net income more than doubled year-on-year to $693 million.

Yang Yuanqing, chairman and CEO of Lenovo, said: "Lenovo's revenue and profit both achieved significant growth last quarter, with strong performance across all core businesses. Notably, the infrastructure solutions business returned to profitability and the smartphone business experienced rapid growth."

"AI technology, with higher efficiency and lower costs, is accelerating the maturation of personal AI and has also accelerated enterprise adoption of AI," Yang added. "Looking ahead, our continued investment in innovation, combined with our resilient global operations, positions us well for sustained and profitable growth in the future."

The company added that it is confident that its global, flexible and resilient supply chain — along with its manufacturing expansion in the Middle East with Alat, a unit of the Saudi Arabian Public Investment Fund, and strategic technology partnerships with Formula 1 and FIFA — will enable it to navigate macroeconomic uncertainties successfully.

Earlier this month, Lenovo and Alat broke ground on a new manufacturing base in the Saudi capital of Riyadh.

The factory will cover 200,000 square meters and focus on the production of laptops, desktops and servers, which is expected to begin in 2026.

Lenovo said the partnership is projected to create up to 15,000 direct jobs and 45,000 indirect jobs, with a cumulative non-oil GDP contribution of up to $10 billion by 2030. The company will also establish a regional Middle East and Africa headquarters in Riyadh to serve customers in the region.

Lenovo said the new PC and server manufacturing facility in Saudi Arabia will help extend the company's existing global footprint, which already includes more than 30 manufacturing sites around the world spanning Argentina, Brazil, China, Germany, Hungary, India, Japan, Mexico and the United States.

Alat's CEO Amit Midha said: "With the establishment of a regional headquarters in Riyadh and a world-class manufacturing hub, powered by clean energy, in the Kingdom of Saudi Arabia, we expect the Lenovo team to further their potential across the MEA region."

The Middle East and Africa region continues to see strong growth momentum fueled by an increasing number of large-capital projects and strong economies, with the region's IT and business services market size expected to reach $38.1 billion by 2027, up from $30.3 billion in 2023, according to data from market research company International Data Corp.