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.



French Economy Likely to Grow at Least 0.8% in 2025, Finance Minister Says

French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)
French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)
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French Economy Likely to Grow at Least 0.8% in 2025, Finance Minister Says

French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)
French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure attends the 7th formal meeting of the Franco-Chinese Business Council in Beijing on December 4, 2025. (Reuters)

Unless there is a sharp reversal in the final three months of the year, the French economy is likely to grow by at least 0.8% in 2025, outpacing the 0.7% that the government had anticipated, Finance Minister Roland Lescure said on Sunday.

"We will most likely exceed the government's growth forecast for this year. We had predicted 0.7%, but I think we will have at least 0.8%. That's good news," Lescure told LCI television.

"So we would really need to have a bad fourth quarter, which I don't believe will happen, for us to be below 0.8%, so 0.8% is within reach," he added.

France's economy grew 0.5% in the third quarter, final data from statistics office INSEE showed in November, reflecting resilience in the euro zone's second-largest economy.


Saudi Real Estate Shifts from Temporary Upswing to Operational Maturity

Real estate projects in Riyadh (SPA) 
Real estate projects in Riyadh (SPA) 
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Saudi Real Estate Shifts from Temporary Upswing to Operational Maturity

Real estate projects in Riyadh (SPA) 
Real estate projects in Riyadh (SPA) 

Saudi Arabia’s listed real estate sector recorded an exceptional and unprecedented transformation in the third quarter of 2025, with profits surging more than sixfold. Total earnings jumped 633.6 percent to $496 million (SAR 1.86 billion), compared with $67.5 million a year earlier, an indication that the industry has entered a phase of sustained operational maturity rather than a short-term cyclical rebound.

The sharp rise reflects the companies’ success in restructuring their product portfolios, enhancing cash flows, and shifting from “paper growth” to revenue-driven expansion supported by project deliveries and operational income.

Sector analysts attributed the leap in profitability to the rollout of major real estate projects in large cities, higher project quality, improved financing conditions, and stronger liquidity.

They noted that the leap aligns with the rapid expansion of Saudi Arabia’s non-oil economy, which now contributes about 56 percent of GDP. This has strengthened demand across residential, commercial, industrial, and office real estate, supporting profit growth alongside recent regulatory reforms.

During the first nine months of 2025, listed real estate firms achieved combined profits of $1.44 billion (SAR 5.4 billion), led by Cenomi Centers, Jabal Omar, and Masar (Umm Al-Qura for Development and Construction) - a 244 percent increase from the same period in 2024.

Financial disclosures show that nine out of sixteen listed developers reported higher profits in Q3, while four companies returned to profitability. Masar topped the sector in Q3 with SAR 516.6 million in earnings, up 341.9 percent year-on-year. Cenomi Centers ranked second with SAR 499.8 million, a rise of 52.2 percent, followed by Dar Al-Arkan, whose profits climbed 89 percent to SAR 255.6 million.

Real estate specialist Abdullah Al-Mousa told Asharq Al-Awsat that the historic profit surge confirms the sector has “entered a stage of operational maturity,” reflecting companies’ improved efficiency, stronger recurring revenues, and the successful transition to asset-operation models.

He identified three key drivers: higher-quality projects and stronger occupancy across income-generating assets; improved financing conditions amid stabilizing interest rates; and the completion of major projects, particularly in Riyadh and Makkah.

Al-Mousa expects continued positive performance in coming quarters, though at a more moderate pace, supported by new strategic projects entering operation, sustained housing demand, rising commercial activity in Riyadh, and ongoing regulatory reforms that reduce risk and attract institutional investment.

Real estate analyst Salman Saeed said the strength of the non-oil economy has sharply boosted demand in housing, retail, industrial, and office markets. He highlighted reforms such as the expansion of the white-land tax and rental-regulation measures, along with significant government support for homeownership, which has raised the share of Saudi citizens owning homes.

Saeed noted that rising demand for commercial and office space, driven by multinational companies relocating to Riyadh, has lifted occupancy rates and diversified developers’ income streams. Some firms also improved results through land sales and divestment of non-core assets, enhancing operational efficiency.

 

 


Qatar’s Energy Minister: AI Will Secure Future Demand for LNG

Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)
Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)
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Qatar’s Energy Minister: AI Will Secure Future Demand for LNG

Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)
Al-Kaabi speaks at a panel discussion at the Doha Forum 2025. (X)

Statements by Qatar’s Minister of State for Energy Affairs Saad Al-Kaabi became a focal point at the Doha Forum 2025, opened by Emir Sheikh Tamim bin Hamad Al Thani under the theme “Anchoring Justice: From Promises to Tangible Reality.”

Al-Kaabi delivered an upbeat assessment of the gas sector’s future, insisting he has “no concern whatsoever” about long-term demand thanks to the soaring power needs of artificial intelligence data centers.

Al-Kaabi said global demand for natural gas will remain robust as AI-driven energy consumption accelerates, forecasting that liquefied natural gas (LNG) demand will reach 600–700 million tons annually by 2035. He warned, however, that insufficient investment could constrain future LNG and gas supplies.

“I have absolutely no worries about future gas demand,” he said, adding that AI-related power consumption will be a key driver.

Once fully operational, Qatar’s North Field expansion is expected to produce 126 million metric tons of LNG a year by 2027 - an 85 percent increase from today’s 77 million tons.

He also noted that the first train of the Golden Pass LNG project, a joint venture with ExxonMobil in Texas, is scheduled to begin operations in the first quarter of 2026.

Al-Kaabi argued that oil prices between $70 and $80 per barrel would generate sufficient revenue for companies to invest in future energy needs, while prices above $90 would be “too high.”

He separately cautioned that the Gulf region is witnessing an “excess of real-estate construction,” raising the risk of a property bubble.

The minister hoped that the European Union will address corporate concerns over new sustainability regulations by the end of December.

Gulf Cooperation Council states voiced deep concern on Friday about two proposed EU directives, which tackle corporate sustainability due diligence and sustainability reporting, recently amended by the European Parliament for trilogue negotiations.

The GCC warned that the measures would effectively compel major European and international companies to adopt the EU’s sustainability model, comply with additional human rights and environmental obligations, submit climate-transition plans beyond existing global accords, file detailed sustainability reports, and face penalties for non-compliance.

Qatar has also criticized the due-diligence directive and has threatened to halt gas supplies. The dispute centers on potential fines of up to 5 percent of a company’s global revenue.

Al-Kaabi has repeatedly stated that Qatar will not meet net-zero emissions targets under such conditions.