As China races to expand its global digital presence, technology giant Tencent is stepping up its investments in Saudi Arabia with major cloud projects that align with the Kingdom’s Vision 2030 digital transformation agenda.
The company’s strategy was outlined during exclusive interviews with Asharq Al-Awsat, the first Arab media outlet to visit Tencent’s global headquarters in Shenzhen.
Founded in 1998, Tencent Holdings is one of the world’s largest internet and technology companies, operating across three main sectors: value-added services, marketing, and financial and business solutions. Listed on Hong Kong’s main exchange since 2004, the firm has grown into a global powerhouse.
In the second quarter of 2025, Tencent reported revenues of 184.5 billion yuan ($25.6 billion), compared with 161.1 billion yuan ($22.4 billion) a year earlier. Net profit rose 16 percent year-on-year to 56 billion yuan ($7.8 billion), boosted by strong gaming revenues and improvements to its AI-driven advertising platform.
Dowson Tong, Senior Executive Vice President of Tencent and CEO of the Cloud and Smart Industries Group, confirmed that the company is in the final stages of launching a new data center in Riyadh, which he described as a “significant growth opportunity.”
“We are already supporting many Chinese companies expanding in the Kingdom, and several of our partners are preparing to use the new facility,” Tong said. “This will enable us to grow not just in Saudi Arabia but across the wider Middle East.”
Tong added that the project reflects Tencent’s strategy of expanding internet coverage and delivering services closer to users. He emphasized that the Middle East is one of the fastest-growing digital markets globally and that Tencent is committed to long-term investment in the region.
For now, the company’s Saudi operations are focused on serving Chinese enterprises active in the Kingdom. However, licensing and regulatory approvals are under way to allow Tencent to extend cloud services to the public sector and make its “public cloud” accessible to Saudi businesses.
In February, Tencent announced the launch of its first Middle East cloud region, based in Saudi Arabia, with a $150 million investment in infrastructure and innovation to support Vision 2030. The hub includes two availability zones and a comprehensive suite of cloud computing and AI services, bringing Tencent’s global network to more than 50 availability zones across 21 regions.
According to Dan Hu, Vice President of Tencent Cloud International for the Middle East and North Africa, the Saudi cloud hub is a “strategic cornerstone” of the company’s regional presence.
He said the facility will accelerate digital transformation and enable smart city growth with solutions such as edge computing and AI-powered analytics, which allow real-time data processing in areas like predictive maintenance, urban planning, and smart building management.
Hu stressed that Saudi Arabia serves as Tencent’s gateway to the Middle East, with growing commitments expected across digital media, gaming, e-commerce, tourism, finance, and telecommunications.
He noted that the Middle East has already emerged as Tencent’s fastest-growing market. In 2024, the company recorded double-digit growth in international markets, fueled by strong demand for digital media services.
The launch of the Saudi cloud region is a milestone in the region’s digital transformation journey, Hu said, adding that it reflects confidence in the Kingdom’s ambition to become a global hub for digital solutions.
Tencent is also tailoring its technologies to local needs by building teams on the ground and working with regional system integrators and developers. This ensures flexibility, regulatory compliance, and alignment with business requirements.
Hu noted that the prioritization of AI by governments in Saudi Arabia, the UAE, and Qatar is strengthening public services, enhancing digital infrastructure, and advancing economic diversification.
