Alibaba Group Holding, the Chinese e-commerce behemoth, intends to bolster its presence in the Gulf region by forging partnerships with local companies in Saudi Arabia and the UAE.
Michael Evans, President of Alibaba Group, highlighted the company’s successful collaborations with the Gulf Cooperation Council during a panel session at Dubai’s World Government Summit. He emphasized plans to replicate this model in the UAE, citing recent achievements in Saudi Arabia.
“We’ve chosen to partner, which is somewhat unconventional for a Chinese company,” Evans remarked, according to Bloomberg. “Partnering in a local market, we’ve done it here in the GCC. We’re going to do it in the UAE. We’ve just completed something very significant in Saudi.”
Alibaba’s strategic moves come amid efforts to rebound from regulatory penalties and strategic missteps that have challenged its dominance in China’s tech sector, as reported by Bloomberg. Co-founder Jack Ma urged the company to correct its course in November.
According to Evans, collaborating with local partners facilitates close engagement with market dynamics. Last year, both the UAE and Saudi Arabia were invited to join the BRICS bloc, largely led by China.
Saudi Arabia’s ambitious Vision 2030 initiative has spurred significant socioeconomic progress, opening avenues for foreign investors. Alibaba Cloud, the world’s largest cloud computing provider, entered the Saudi market through a joint venture, Saudi Cloud Computing Co. This partnership aims to deliver high-quality services to both public and private sector entities, in line with Vision 2030 objectives.
The selection of King Abdullah Financial District (KAFD) as the launch site for Alibaba’s Saudi operations underscores the district’s growing stature as a global financial hub. Selina Yuan, President of International Business for Alibaba Cloud Intelligence, highlighted KAFD’s global recognition as a prominent financial center.
As Alibaba Cloud Intelligence strengthens its footprint in Saudi Arabia, the region can anticipate enhanced collaboration, innovative solutions, and sustainable growth opportunities. These endeavors align with the objectives of Saudi Arabia’s Vision 2030, driving the digital transformation journey across the Middle East.
