Saudi Telecom Co (STC Group) and Chinese technology giant Alibaba have set up a new company with an investment of 894 million riyals ($238.3 million) to tap into the growing cloud computing market.
The Riyadh-based entity, Alibaba Cloud, will provide advanced cloud computing services and solutions to businesses operating in the kingdom.
The establishment of the new entity is in line with the state’s strategy to attract foreign investments into the kingdom and will help organizations digitize their businesses.
“The new company… will employ the best talent and expertise to support the local capabilities of the kingdom and enable it to enhance digital development [in Saudi],” the statement said.
The new company was also set up in partnership with eWTP Arabia for Technical Innovation Ltd., the Saudi Company for Artificial Intelligence (SCAI), and the Saudi Information Technology Company (SITE). The global cloud computing market is forecast to reach $1,554.95 billion by 2030, registering a CAGR of 15.7 percent, according to a report published on ResearchAndMarkets.com.