Saudi-listed Advance International Company for Communication and Information Technology (AICTEC) has entered into a memorandum of understanding (MoU) with the Chinese firm ZKTeco to establish a new factory in Saudi Arabia. Under this agreement, ZKTeco will hold a 60% stake in the joint venture, while AICTEC will retain the remaining 40%. The total capital for the new company is set at $1.5 million, equivalent to approximately SAR 5.63 million, according to a statement provided by AICTEC to Tadawul.

The factory will specialize in the local manufacturing and assembly of various security technologies, including inspection gates for security checks, as well as vehicle and pedestrian access control systems. ZKTeco, which is listed on the Shenzhen Stock Exchange, is known for its development of biometric solutions and AI-powered spatial cognitive intelligence technologies.

The joint venture aims to primarily address the needs of the Saudi market, but it also plans for regional expansion in the future. This initiative reflects a growing partnership between Saudi Arabia and China in the manufacturing sector, enhancing local production capabilities.