Huawei Cloud to accelerate Saudi Arabia’s AI goals with massive new investment

The rapid development of cloud computing infrastructure in Saudi Arabia has accelerated since Huawei Cloud launched its Riyadh Region in September 2023. The establishment of this regional hub marks a significant milestone in Saudi Arabia’s digital transformation journey under Vision 2030.

Current status and reach: Huawei Cloud’s Riyadh Region has established itself as a major AI hub serving the Middle East, Central Asia, and Africa, delivering advanced cloud services to over 1,000 customers and 300 partners.

• The region’s 3AZ architecture provides impressive latency rates of 25ms within Saudi Arabia and 100ms across the broader region
• Huawei Cloud has secured a Class C license from Saudi Arabia’s Communications, Space, and Technology Commission
• The company has been included in the National Framework Agreement (NFA V2.0), enabling direct cloud service procurement by government entities

Strategic investments and commitments: Huawei has pledged substantial resources to develop Saudi Arabia’s cloud computing and AI capabilities.

• A $400 million investment is planned for the Saudi Arabia cloud region over the next five years
• The company aims to train 500,000 developers and partner with 1,000 local organizations
• The ‘Saudi Arabia Go Cloud Go Global’ initiative will facilitate connections between Chinese and Saudi enterprises

Technical capabilities and focus: Huawei Cloud employs a dual strategy combining cloud infrastructure with AI development.

• The company’s “AI for industries” approach leverages the Pangu model series and DataArts platform
• Special emphasis is placed on developing Arabic language models and localized AI solutions
• The infrastructure supports both “Cloud for AI” and “AI for Cloud” methodologies, creating a synergistic relationship between cloud services and AI development

Ecosystem development: Lawrence Liu, CEO of Huawei Cloud Saudi Arabia, has outlined ambitious plans for growing the local digital ecosystem.

• The Huawei Cloud Entrepreneurship Program aims to support 2,000 startups
• Current initiatives focus on developing 200,000 developers and building solutions with local partners
• The company is actively supporting government digital transformation efforts through AI implementation

Looking ahead – Strategic implications: While Huawei Cloud’s rapid expansion in Saudi Arabia demonstrates the Kingdom’s commitment to becoming a regional technology leader, the success of this initiative will largely depend on the development of local talent and the creation of sustainable partnerships between international and Saudi enterprises.