Chinese cloud giants are rapidly establishing themselves in the Middle East, challenging the dominance of US-based providers like Amazon, Microsoft, and Google. Huawei, Alibaba, and Tencent are gaining momentum through strategic partnerships and localized services that align with the region’s specific needs and government regulations.
While US cloud providers have been operating data centers in the Middle East for years, Chinese companies are taking a different approach. By focusing on infrastructure investment, regional collaboration, and digital transformation, these firms are carving out significant space in the competitive cloud market.
The Rise of Chinese Cloud Providers
According to IDC’s Manish Ranjan, the Chinese providers are steadily gaining ground by supporting local digital initiatives. Despite the established presence of AWS, Microsoft Azure, and Google Cloud in the region, Ranjan points out that companies like Huawei and Alibaba are increasingly visible, thanks to their tailored approach to the Middle East’s unique requirements.
For instance, Amazon Web Services (AWS) established its first Middle East data center in Bahrain in 2019, followed by a second one in the UAE in 2022. Microsoft launched its cloud regions in Abu Dhabi and Dubai the same year, while Google Cloud entered the market in Dammam, Saudi Arabia, in 2023. Oracle has similarly expanded with multiple cloud zones in the UAE and Saudi Arabia, including an expansion in Neom.
Huawei Leads the Way in Local Collaboration
Huawei, however, has taken a distinct path, focusing on partnerships with regional telecom companies. The company collaborates with major players like STC, du, Zain, OmanTel, and Ooredoo to advance cloud computing, AI, 5G, and smart infrastructure in the region. At the 2025 Mobile World Congress, Huawei’s Alan Qi emphasized the company’s role in Saudi Arabia’s digital transformation, with four operational cloud facilities in the country, including one low-latency data center that reduces processing delays.
In March, Huawei expanded its presence further by partnering with Zain KSA to enhance network infrastructure. The collaboration has already attracted over 1,000 clients, including key government and financial institutions.
Tencent and Alibaba Join the Race
Tencent also entered the regional cloud market in February, committing over $150 million to Saudi Arabia in the coming years. This strategic investment positions Tencent as a serious contender in the Middle East cloud space.
Alibaba Cloud, another major Chinese provider, opened data centers in the UAE in 2022 and in Saudi Arabia in 2024. The company also formed a partnership with STC to launch the Saudi Cloud Computing Company, which supports Saudi Arabia’s Vision 2030 strategy. This collaboration underscores Alibaba’s commitment to the region and its focus on delivering localized cloud solutions.
Localization and Compliance: Key to Success
A defining factor in the success of Chinese cloud providers in the Middle East is their ability to adapt to local regulations and data localization requirements. These companies have not only tailored their platforms to meet these needs but have also formed strategic partnerships with government entities to ensure compliance with regional laws.
The focus on artificial intelligence (AI) has also helped set Chinese providers apart. Huawei, for example, has integrated AI tools into its services more aggressively than its US competitors. At Huawei’s Global AI Summit, the company demonstrated how its Arabic language models could cut diagnostic times in Saudi hospitals by up to 40%. This application of AI to address local challenges has proved to be a major selling point in the region.
The Digital Silk Road: A Strategic Advantage
China’s broader Digital Silk Road initiative plays a significant role in supporting the expansion of Chinese cloud companies. This initiative fosters diplomatic ties and streamlines market entry for Chinese firms by facilitating partnerships and easing regulatory hurdles.
As US cloud providers face increased scrutiny over data governance issues, Chinese companies benefit from high-level agreements with Middle Eastern governments that reduce regulatory friction and promote collaboration. This diplomatic support, combined with strong local partnerships, has given Chinese cloud firms an edge in a region where trust and cooperation are essential for success.
The Appeal for Middle Eastern CIOs
For Chief Information Officers (CIOs) in the Middle East, especially those in government and finance, Chinese cloud services present a compelling mix of local compliance, cost-effectiveness, and robust support. Manish Ranjan points out that Chinese cloud platforms offer bundled services and a strong focus on total cost of ownership, making them particularly attractive in a highly competitive market.
However, as Kenneth Lindegaard, CIO of UAE-based firm Space42, notes, not all workloads are best suited for the cloud. While cloud adoption is growing, certain industry-specific tasks still run better on traditional infrastructure. Regulations like data localization also present challenges, with some companies questioning the business case for building data centers in every country.
Hybrid Cloud: A Winning Strategy
The preference for hybrid cloud deployments—which combine cloud services with on-premise data centers—plays to the strengths of Chinese firms. These companies were early to structure their regional strategies around flexibility, making them well-positioned to support diverse customer needs in the Middle East.
Luis Bravo, a senior analyst at Texas-based Hawk, emphasizes that success in the Middle East cloud market isn’t solely about technological capability. He notes that trust and cooperation are just as critical. Chinese companies have managed to build that trust, showing that successful market entry depends on forming strong, long-term relationships with local partners and customers.
A Changing Cloud Landscape
As the cloud landscape in the Middle East continues to evolve, the competition is shifting. The focus is no longer solely on which provider offers the most advanced technology, but on who can deliver solutions that are tailored to local needs and compliant with regional regulations. Chinese cloud providers appear to have embraced this shift, positioning themselves as reliable, cost-effective, and regionally connected options for businesses and governments in the Middle East.
