Huawei, the Shenzhen, China-based telecom equipment manufacturer, is upgrading its local offices in Saudi Arabia to a regional headquarters. The move underscores the Chinese tech giant’s commitment to the kingdom’s, and the region’s, economic and technological development, Asia Times reported.
Saudi Arabia’s Regional Headquarters Program stipulates that a multinational company wishing to do business with Saudi government agencies must locate its regional headquarters for the Middle East & North Africa (MENA) in the country. The RHP is a joint initiative of the Saudi Ministry of Investment and the Royal Commission for Riyadh City, and takes effect in January 2024.
This announcement follows the signing of a business agreement involving Huawei by Chinese President Xi Jinping and Saudi King Salman during Xi’s visit to Saudi Arabia last December. That agreement covers cloud computing, data centers and the establishment of high-tech complexes in different Saudi Arabian cities.
The two leaders also signed a Comprehensive Strategic Partnership Agreement to “firmly support each other’s core interests” and a “harmonization plan” between China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030 blueprint for economic and technological development, which aims to diversify the kingdom’s economy away from oil export dependence.
Fostered by Crown Prince Mohammed bin Salman, prime minister, and chairman of the Council of Economic and Development Affairs, Vision 2030 aims to turn Saudi Arabia into a “global investment powerhouse” and “a global hub connecting… Asia, Europe and Africa.”
Huawei is already making inroads. During the recent Mobile World Congress 2023 held in Barcelona, Huawei and Saudi Arabian telecom operator Zain signed a Memorandum of Understanding to build a 5.5G network for individual, corporate and government customers. On the commercial side, the project includes the Internet of Things (IoT) and private network solutions, cloud computing, fintech, business support and drones.
The participation of Huawei, Siemens and other foreign technology companies is key to realizing Saudi Arabia’s vision. In that context, Saudi and Chinese economic development officials signed a separate agreement covering the digital economy (e-commerce and fintech), communications and information technologies (including nationwide broadband coverage), their commercial and industrial application and research into emerging technologies.
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