Tencent Deepens Digital Footprint in Saudi Arabia to Support Smart Transformation

Dowson Tong, Senior Executive Vice President of Tencent and CEO of the Cloud and Smart Industries Group. (Asharq Al-Awsat)
Dowson Tong, Senior Executive Vice President of Tencent and CEO of the Cloud and Smart Industries Group. (Asharq Al-Awsat)
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Tencent Deepens Digital Footprint in Saudi Arabia to Support Smart Transformation

Dowson Tong, Senior Executive Vice President of Tencent and CEO of the Cloud and Smart Industries Group. (Asharq Al-Awsat)
Dowson Tong, Senior Executive Vice President of Tencent and CEO of the Cloud and Smart Industries Group. (Asharq Al-Awsat)

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.



Oil Heads for Second Weekly Loss on Lingering Oversupply Concerns

Panamanian-flagged Caribbean Glory vessel with a capacity of 2 million barrels of oil, loads crude oil at a TLU (Tanker Loading Unit) in the Gulf of Morrosquillo, operated by Cenit, owned by Ecopetrol, in Covenas, Colombia October 1, 2025. REUTERS/Nelson Bocanegra
Panamanian-flagged Caribbean Glory vessel with a capacity of 2 million barrels of oil, loads crude oil at a TLU (Tanker Loading Unit) in the Gulf of Morrosquillo, operated by Cenit, owned by Ecopetrol, in Covenas, Colombia October 1, 2025. REUTERS/Nelson Bocanegra
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Oil Heads for Second Weekly Loss on Lingering Oversupply Concerns

Panamanian-flagged Caribbean Glory vessel with a capacity of 2 million barrels of oil, loads crude oil at a TLU (Tanker Loading Unit) in the Gulf of Morrosquillo, operated by Cenit, owned by Ecopetrol, in Covenas, Colombia October 1, 2025. REUTERS/Nelson Bocanegra
Panamanian-flagged Caribbean Glory vessel with a capacity of 2 million barrels of oil, loads crude oil at a TLU (Tanker Loading Unit) in the Gulf of Morrosquillo, operated by Cenit, owned by Ecopetrol, in Covenas, Colombia October 1, 2025. REUTERS/Nelson Bocanegra

Oil prices rose on Friday but remained on track for a second consecutive weekly loss after three days of declines on worries about excess supply and slowing US demand.

Brent crude futures rose 50 cents, or 0.8%, to $63.88 a barrel by 1243 GMT. US West Texas Intermediate crude was up 51 cents, or 0.9%, at $59.94.

Both benchmarks are poised to register weekly declines of more than 1.5% as leading global producers raise output.

"The market continues to weigh a rising oil surplus against mixed macro," said SEB analyst Ole Hvalbye, Reuters reported.

An unexpected US inventory build of 5.2 million barrels reignited oversupply fears this week, said IG Markets analyst Tony Sycamore.

US crude stocks rose more than expected on higher imports and reduced refining activity while gasoline and distillate inventories declined, the Energy Information Administration said on Wednesday.

Concern over the effects of the longest government shutdown in US history also pressured oil prices.

The Trump administration has ordered flight reductions at major airports because of a shortage of air traffic controllers while private reports are pointing to a weaker US labor market in October.

The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Sunday to increase output slightly in December. However, the group also paused further increases for the first quarter of next year, wary of a supply glut.

European and US sanctions on Russia and Iran, meanwhile, are disrupting supplies to the world's largest importers, China and India, providing some support for global markets.

China's crude imports in October rose 2.3% from September and were up 8.2% from a year earlier at 48.36 million tons, customs data showed, against a backdrop of high utilisation rates at refineries in the world's largest oil importer.

"China kept importing elevated amounts of crude in October," UBS analyst Giovanni Staunovo said. "That move keeps those barrels away from the OECD, where inventories remain low."

Swiss commodities trader Gunvor said on Thursday that it had withdrawn its proposal to buy the foreign assets of Russian energy company Lukoil after the US Treasury called it Russia's "puppet" and signalled that Washington opposed the deal.

"Gunvor scrapping its Lukoil assets purchase suggests the US is maintaining its maximum pressure campaign against Russia, and potential strict enforcement of sanctions on Rosneft and Lukoil," said Vandana Hari at oil market analysis provider Vanda Insights.


China Announces 1-year Suspension of Expanded Rare Earth Export Controls

A glass jar containing the rare earth metal Terbium (L) is pictured inside the storage room of Tradium, a company specialised in trading rare earths, in Frankfurt am Main, western Germany, on November 4, 2025. (Photo by Kirill KUDRYAVTSEV / AFP)
A glass jar containing the rare earth metal Terbium (L) is pictured inside the storage room of Tradium, a company specialised in trading rare earths, in Frankfurt am Main, western Germany, on November 4, 2025. (Photo by Kirill KUDRYAVTSEV / AFP)
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China Announces 1-year Suspension of Expanded Rare Earth Export Controls

A glass jar containing the rare earth metal Terbium (L) is pictured inside the storage room of Tradium, a company specialised in trading rare earths, in Frankfurt am Main, western Germany, on November 4, 2025. (Photo by Kirill KUDRYAVTSEV / AFP)
A glass jar containing the rare earth metal Terbium (L) is pictured inside the storage room of Tradium, a company specialised in trading rare earths, in Frankfurt am Main, western Germany, on November 4, 2025. (Photo by Kirill KUDRYAVTSEV / AFP)

China suspended an array of export control measures it imposed on October 9, including expanded curbs on some rare earths materials and equipment, as well as lithium battery materials and super-hard materials, the Commerce Ministry said in a statement on Friday.

The suspensions were effective immediately and would apply through November 10, 2026, the ministry said.

The announcement confirmed and formalized an agreement reached after US President Donald Trump and Chinese President Xi Jinping hammered out a trade truce last month.

The White House and China's Commerce Ministry had both said such an announcement was forthcoming.


FAO: World Food Prices Fall for 2nd Consecutive Month in October

People wait in line outside Adams County Emergency Food Bank for their completed grocery cart, weeks into the continuing US government shutdown, in Commerce City, Colorado, US October 31, 2025.  REUTERS/Mark Makela
People wait in line outside Adams County Emergency Food Bank for their completed grocery cart, weeks into the continuing US government shutdown, in Commerce City, Colorado, US October 31, 2025. REUTERS/Mark Makela
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FAO: World Food Prices Fall for 2nd Consecutive Month in October

People wait in line outside Adams County Emergency Food Bank for their completed grocery cart, weeks into the continuing US government shutdown, in Commerce City, Colorado, US October 31, 2025.  REUTERS/Mark Makela
People wait in line outside Adams County Emergency Food Bank for their completed grocery cart, weeks into the continuing US government shutdown, in Commerce City, Colorado, US October 31, 2025. REUTERS/Mark Makela

World food commodity prices fell for a second consecutive month in October, driven largely by ample global supplies, the United Nations' Food and Agriculture Organization (FAO) said on Friday.

The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 126.4 points in October, down from a revised 128.5 in September.

The index was down slightly compared to its October 2024 level and stood 21.1% below its March 2022 peak.

In a separate report, FAO forecast 2025 world cereal production at a record 2.990 billion metric tons, after projecting 2.971 billion tons last month.

The latest outlook was up 4.4% from 2024 output.