(Yicai Global) July 6 -- eWTP Arabia Capital helped the cloud computing division of Chinese internet behemoth Alibaba Group Holding to open two data centers in Saudi Arabia last month to boost the development of the Middle Eastern country’s digital sector.

It marks the latest partnership between Chinese firms rich in experience in the digital economy and the world's biggest oil exporter which has become a regional leader in cloud technologies as the digital economy becomes a new engine driving global development.

The data centers are located in Riyadh and provide localized cloud services to clients. They are run by a joint venture between the two parties and Saudi Telecom, called Saudi Cloud Computing Company (SCCC).

Saudi Arabia is the biggest cloud services market in the Middle East and the Arab world at present. It is expected to be worth SAR25 billion (USD6.7 billion) by 2030 as the market is huge, the country’s Ministry of Communications and Information Technology said.

"Saudi Arabia has made great progress in providing extendable and safe information technology infrastructure to fulfill the needs of powerful and secure cloud services products in the digital era," said Saudi Telecom’s Chief Executive Olayan Mohammed Alwetaid. "We are very happy to partner with Alibaba Cloud, which will leverage its technical expertise and industrial know-how to help us secure more clients through digital innovation," he added.

"This partnership which is of major strategic significance has finally been realized after more than two years of efforts," Jerry Li, eWTP Arabia Capital founder and managing partner, told Yicai Global. "We believe Alibaba Cloud can provide mature services to Saudi Telecom’s customer base with its world-class cloud technology and digital solutions," Li said.

Alibaba Cloud, which operates across 84 areas in 27 countries and regions, has strong global operational abilities and can provide Saudi's cloud services construction with reliable guarantees. The Hangzhou-based firm's cloud computing infrastructure is the largest in Asia.

Investment Bridge

eWTP Arabia Capital is committed to acting as a bridge for Chinese firms that wish to access emerging markets. Backed by the Saudi Arabian Public Investment Fund in the Middle East and North Africa, the firm aims to set up a digital ecosystem in the region by investing in the latest available digital and technological products and services.

Founded in 2020, the firm has already invested almost USD400 million, focusing on fifth-generation wireless networks, internet of things, cloud services, platform as a service, software as a service, logistics and fintech. It has supported 16 Chinese digital technology firms from different sectors to enter the Middle East and North African market, and 13 projects are already underway on the ground.

Systemic opportunities in the Middle East and North African market represented by Saudi Arabia have long been ignored and overlooked, Li said. Valuing local industrial transformation can lay the foundation for further global expansion of companies from China and other non-Middle East and North African regions.

As a notable example, the firm has brought Indonesian courier giant J&T Express to the region. J&T said in February that it will base its Middle East and North African headquarters in Riyadh and build the largest smart logistics park in the region. The firm now employs over 1,000 staff in Saudi Arabia.

Four of eWTP Arabia Capital’s portfolio projects are expected to go public next year, with two of them listing on Saudi stock exchange Tadawul, it said.

Editors: Chen Juan, Kim Taylor