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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)
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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.

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Business

Canada to Impose Retaliatory Across a Raft of US Sectors, Carney Says

Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)
Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)
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Canada to Impose Retaliatory Across a Raft of US Sectors, Carney Says

Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)
Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)

Canada's Prime Minister Mark Carney said on Saturday that starting September 8 Canada would impose tariffs on imports from the United States across a raft of sectors in retaliation for President Donald Trump's new 50% tariffs that came into effect from midnight.

After days of intense negotiations, the two countries failed to reach a ‌trade deal late ‌Friday, worsening an already ‌delicate relationship ⁠between the two ⁠long-term trade partners and allies and complicating the future of a highly successful continental free trade pact called the US-Mexico-Canada agreement.

Trump's new tariffs hit a slew of sectors including furniture, dairy products, cement, clothing, fishing ⁠rods, hockey equipment and cover some $20 billion ‌of Canadian exports south ‌of the border.

These duties do not ‌give exemption to Canadian products under the USMCA, ‌which have shielded most of Canadian exports to the USin the last 18 months.

"Canada will match Washington’s new tariffs dollar for dollar ‌in order to protect Canadian workers, farmers, families, and businesses," Carney said at ⁠a ⁠news conference.

These retaliatory tariffs will hit sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics and will also include products currently subject to the unjustified Section 232 and 338 tariffs, Carney said in a spirited speech from the Parliament building in Ottawa.

"We cannot accept what they have offered, and we will not give what they have asked," Carney said.

Business

Brazil’s Lula Urges Tariffs Resolution in Call with Trump

Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)
Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)
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Brazil’s Lula Urges Tariffs Resolution in Call with Trump

Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)
Brazil's President Luiz Inacio Lula da Silva speaks during a campaign rally at Praca da Estacao in Belo Horizonte, Minas Gerais state, Brazil on August 21, 2026. (AFP)

Brazilian President Luiz Inacio Lula da Silva urged US counterpart Donald Trump in a phone call Friday to resolve their countries' trade dispute, saying US tariffs were imposed on "baseless" grounds.

Washington imposed two new sets of tariffs on the Latin American giant in July, a move that has become a key campaign issue ahead of Brazil's presidential election in October.

Lula -- seeking a fourth and final term -- told Trump that the tariffs "negatively affect both Brazil and the United States," according to a statement from his office.

"To remain at the negotiating table is the best option for both countries," he said.

Relations between Trump and the leftist Lula have blown hot and cold in recent months, but diplomatic tensions have flared as the election approaches.

Trump has backed several victorious right-wing candidates in recent Latin American elections. He is an ally of Brazil's jailed far-right former president Jair Bolsonaro, whose son Flavio is Lula's main election rival.

The Brazilian presidency statement said the conversation between Trump and Lula lasted an hour and 20 minutes and "took place in a friendly and cordial tone."

During a campaign event in the southeastern state of Minas Gerais, Lula said Trump asked Commerce Secretary Howard Lutnick to contact his Brazilian counterpart Marcio Elias Rosa "and they already scheduled a meeting."

He added that Trump acknowledged during their call that the tariffs on Brazil are "based on a lie."

Lula, who like Trump is 80, has made national sovereignty a key theme of his campaign.

In an interview last week, he warned Trump: "Don't meddle in Brazil's affairs, especially regarding the election. If you do meddle, you'll lose."

"I said, 'Hey Trump, if you want to fight organized crime, let's fight organized crime,'" Lula told the crowd in Minas Gerais. "We want to work together. What we don't want is interference in Brazil."

- 'Daily terror'-

The two leaders have often appeared to get on well one-on-one, with Trump last year hailing an "excellent chemistry" with Lula.

The US last year dropped punitive tariffs it imposed over the trial against Jair Bolsonaro, which Trump labelled a "witch hunt," after diplomatic efforts by Lula's government.

However, Lula then suffered a blow after a May visit to the White House by Flavio Bolsonaro.

Two days later, the US designated Brazil's two largest drug cartels as terrorist organizations, which Flavio has said was a personal request.

"These criminal groups inflict daily terror on the most vulnerable populations, but they are not the same as terrorist organizations," Lula told Trump.

Security is the main concern of Brazilians heading into this year's elections, polls have shown.

Flavio Bolsonaro is pushing for a tough-on-crime model like that of El Salvador's President Nayib Bukele, whose sweeping crackdown on gangs and mass detentions have drawn controversy.

- Deforestation and PIX -

The United States imposed a 25-percent tariff on a range of Brazilian goods over policies it argued harm US commerce, such as deforestation and a free electronic payments system known as PIX.

Brazilian data shows deforestation in the Amazon fell last year to its lowest point since 2016.

Brazil was also impacted under a separate global tariff regime against US trading partners accused of using forced labor.

Lula has repeatedly said he believes it was US Secretary of State Marco Rubio and not Trump who was behind the tariffs against Brazil.

"Trump is the best of the lot, and the one who talks most seriously with me," he said last week.

Business

Arctic Shipping a Daunting Prospect in Hotly Contested Region

This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
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Arctic Shipping a Daunting Prospect in Hotly Contested Region

This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)
This handout photo taken and released on August 15, 2026 by the Ningbo Zhoushan Port Group shows the "Dubai Tower" container ship, operated by Chinese shipowner Sea Legend, setting sail from the port of Ningbo headed to the port of Felixstow, England. (Handout / Ningbo Zhoushan Port Group / AFP)

With Middle East turmoil slashing Suez Canal traffic, shipping firms are tempted to try the Arctic for quicker trips between Europe and Asia -- but commercial prospects are unlikely to match countries' strategic ambitions for the North Pole.

Container ships from China and South Korea aim to transit the Northern Sea Route in Russian territorial waters in the coming weeks, testing its viability as climate change keeps the passage free of ice longer each year.

Industry experts remain skeptical, saying that even if more vessels start going through, the bulk of global shipping will remain along established lines for the foreseeable future.

- Shorter, cheaper, harder -

Houthi militants in Yemen have disrupted traffic through the Bab el-Mandeb Strait by attacking vessels heading to and from the Suez Canal.

Many operators now avoid the passage and send ships instead around South Africa's Cape of Good Hope, vastly prolonging the journey between Asia and Europe and driving up fuel costs and emissions.

By contrast, the Northern Sea Route (NSR) could cut the distance by 30 to 40 percent compared to using the Suez Canal, and by nearly half from going around the southern tip of Africa, the credit insurance group Coface said in April.

But what looks good on spreadsheets ignores daunting constraints.

"The Arctic link can only be seasonal, from August to October," said Paul Tourret, director of the Higher Institute of Maritime Economics (ISEMAR) in Saint-Nazaire, France.

"And you need ice-class ships, which cost more," he told AFP.

That rules out Supramax and other hulking container ships that make up a major share of global traffic, since they can offer hugely competitive rates.

By contrast, the capacity of the Chinese container ship "Dubai Tower" that embarked on the NSR from Ningbo to Europe this month, is one-tenth the size, said Jerome de Ricqles, a sea freight specialist at Upply, a French-based transport management firm.

- Real but limited potential -

Most container ships using the NSR need to be escorted by Russia's fleet of nuclear-powered icebreakers.

Last year, a record 23 vessels made the passage, up from 15 in 2024, according to a recent study by insurance group Allianz Commercial.

That's fewer than the number using the Suez Canal each day.

Even with conflicts in the Middle East, some 35 ships a day transited the Egyptian canal in the first half of this year, down from more than 50 a day before the Houthis started their attacks in 2023.

The northern route is "a temporary and minuscule solution with regards to the overall needs", De Ricqles said.

According to Coface, just 3.5 percent of the current traffic between East Asia, northern Europe and North America could actually shift to Arctic routes.

Looking out to 2030, viability "remains extremely limited and mainly only concerns raw materials", Eve Barre, an economist who piloted the Coface study, said in a statement.

Even so, the NSR could attract bulk liquid vessels carrying oil and liquefied natural gas, who could see their costs slashed by 45 to 50 percent in some cases, the study found.

Dry bulk ships might also start using it, especially if they can operate with icebreaker escorts.

But the prospect also carries environmental risks if increased traffic accelerates Arctic melting, with soot emissions that settle on the ice cap trapping heat from sunlight.

Fuel spills are also a concern, and several big Western shipping firms including France's CMA-CGM, Switzerland's MSC and Germany's Hapag-Lloyd have already pledged they will not use the Northern Sea Route.

All in all, the route "isn't likely to upend the major balances of global trade", Barre said, noting that the interest in Arctic shipping "is less commercial than political" at a time of tense rivalries between Russia, China and the United States.

Tourret at the French marine institute agreed, calling the trips by the Chinese and South Korean vessels a sideshow.

"One swallow does not a summer make, and one Chinese container ship doesn't create a Polar Silk Road," he said, referring to Beijing's Belt and Road Initiative aiming to knit together a trading network between Asia, Europe and Africa.