Chinese tech firms deepen ties in Saudi Arabia

Chinese technology firms have strengthened their partnerships in Saudi Arabia, as reported by Xinhua. A senior Saudi government official recently hailed China's scientific advancements and vowed to deepen ties between the two nations at a technology conference. Since then, numerous deals have been announced, bringing Chinese robotaxis, laptops, AI models, and data centers to the kingdom.

Saudi Arabia, under the leadership of Crown Prince Mohammed bin Salman, is investing heavily in its domestic tech ecosystem through Vision 2030, despite some projects facing delays.

The young, tech-savvy Saudi population has a high demand for apps and computing power, making the Gulf an essential location for China to showcase its superior technology compared to US counterparts. Karim Alwadi, a Beijing-based academic, noted that Chinese firms are targeting the Gulf as a gateway to the Global South and a source of capital for high-tech industries. State-backed funds and family offices are eager to co-invest in these ventures, reducing the financial strain typically associated with high-tech sectors.

This week's announcements highlighted AI-focused products and services from Chinese companies. WeRide plans to expand its robotaxi services in Riyadh, potentially reaching up to 10,000 vehicles. The Public Investment Fund's HUMAIN commissioned an Arabic-language AI model from China's MiniMax, while Tencent Cloud secured a Saudi operating license to cater to government and finance clients. Lenovo is set to begin mass production of a laptop unveiled at the LEAP technology event by the end of the year.

Although US companies like Amazon Web Services (AWS) are constructing data centers in Saudi Arabia worth $5.3 billion, the competition between China and the US in the tech domain is increasingly evident. China's AI and telecommunications sectors are rapidly expanding across the Global South, with Saudi Arabia setting a precedent for other Gulf countries to follow.

HUMAIN, a leading venture capital firm, has tied funds to compute power in Saudi Arabia and plans to introduce its clients to Chinese open-source AI models on local data centers.