Chinese cloud providers are progressively expanding their presence in the Middle East, challenging the dominance of established US tech companies by aligning more closely with local government priorities and regulations.
While Amazon, Microsoft, Google, and Oracle have operated regional data centres for several years, companies like Huawei, Alibaba, and Tencent are gaining traction through targeted partnerships and services tailored to regional needs. These Chinese firms are investing in infrastructure, training, and collaboration with regional telecom providers to strengthen their foothold.
According to IDC’s Manish Ranjan, Chinese cloud providers are making progress by supporting local digital transformation efforts. “Despite the established dominance of AWS [Amazon Web Services], Azure, and Google Cloud in the Middle East, Chinese providers like Huawei and Alibaba are making a significant presence in the region,” Ranjan noted in comments reported by Rest of World.
US cloud firms were early entrants in the region. Amazon Web Services opened its first Middle East data centre in Bahrain in 2019, with a second in the UAE in 2022. Microsoft launched cloud regions in Abu Dhabi and Dubai in the same year, while Google Cloud entered Saudi Arabia’s Dammam region in 2023. Oracle currently operates multiple cloud zones in both the UAE and Saudi Arabia, including a planned expansion in Neom.
However, Chinese providers have pursued a different strategy. Huawei has partnered with telecom companies such as STC, E& Enterprise, du, Zain, OmanTel, and Ooredoo to support cloud computing, AI, 5G, and smart infrastructure. At the 2025 Mobile World Congress in Barcelona, Alan Qi, president of Huawei Cloud Middle East and Central Asia, emphasised the company’s role in enabling digital growth in Saudi Arabia. The company currently operates four cloud facilities in the country, including a low-latency data centre that reduces processing delays.
In March, Huawei announced a collaboration with Zain KSA to enhance network infrastructure. The company says it has already onboarded more than 1,000 clients in Saudi Arabia through its Riyadh hub, including government departments and financial institutions.
Tencent entered the regional cloud market in February, pledging to invest over $150 million in Saudi Arabia in the coming years.
Alibaba Cloud has followed a similar path, opening data centres in the UAE in 2022 and in Saudi Arabia last year. It also partnered with STC to launch the Saudi Cloud Computing Company, designed to support the kingdom’s Vision 2030 strategy.
Chinese firms have built partnerships with public-sector organisations and customised their platforms to support data localisation requirements. “They have also formed strategic partnerships with government entities in the region, especially in Saudi Arabia, to ensure compliance with local data laws,” Ranjan said in remarks reported by Rest of World.
Artificial intelligence has also become a key focus. Chinese companies providers have integrated AI tools into their services earlier and more aggressively than their US competitors. At the Huawei Global AI Summit, the company’s CTO, Bruno Zhang, revealed how its Arabic language models might save hospital diagnostic times in Saudi Arabia by up to 40%—a practical example of AI tailored to local needs.
These efforts are further supported by China’s Digital Silk Road initiative, which fosters diplomatic ties and eases market entry for Chinese firms. While US providers face scrutiny over data governance, Chinese companies benefit from high-level agreements that streamline operations and reduce regulatory friction.
For CIOs in the Middle East, especially in sectors like government and finance, Chinese cloud services present a mix of local compliance, cost efficiency, and support. Ranjan pointed out—according to Rest of World—that bundled service offerings and a clear focus on total cost of ownership have made these platforms especially attractive.
Kenneth Lindegaard, CIO of UAE-based firm Space42, said that while cloud adoption is growing, some industry-specific workloads still run better on traditional infrastructure. “The cloud market is very competitive, and there are many players,” Lindegaard noted in comments reported by Rest of World. “Regulations like data localisation, etc., are risky because there might not be a business case for all of them to build cloud data centres in all countries.”
The preference for hybrid deployments—combining cloud services with on-premise data centres—has played to the strengths of Chinese firms, which structured their regional strategy around this flexibility early on.
Luis Bravo, a senior analyst at Texas-based data centre firm Hawk, observed that technological capability alone isn’t enough to succeed in markets like the Middle East. “Chinese companies are showing that success depends as much on trust and cooperation as it does on computing power,” Bravo said in remarks reported by Rest of World.
As the cloud landscape in the Middle East evolves, the competition increasingly centres on who can offer tailored, locally compliant solutions—rather than who offers the most advanced technology. Chinese providers appear to have taken that message to heart.
(Photo by Unsplash)
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