Chinese tech firms deepen Saudi ties at LEAP

The LEAP event in Riyadh has become a stage for Chinese technology companies to secure deals in Saudi Arabia, marking a shift from the kingdom's past role as merely a source of capital. With Crown Prince Mohammed bin Salman pouring billions into a domestic tech ecosystem under Vision 2030, Saudi Arabia is now actively courting foreign tech firms to operate locally, despite some mega-projects being delayed. The kingdom's young, gaming- and smartphone-obsessed population creates a strong demand for apps and computing power, making it a lucrative market.

This wave of deals carries strategic significance beyond commerce. According to James Kynge of Chatham House, the Gulf is a crucial focal point for China to demonstrate to the world that its technology can out-compete American tech. By landing robotaxis, AI models, and data centers in Saudi Arabia, Chinese firms are not just expanding their reach—they are testing and showcasing their ability to operate globally. The presence of Chinese state media at the event, where a Saudi official praised Chinese scientific innovation, underscores the political dimension of these business ties.

For US tech companies, this development highlights the intensifying rivalry in a region that is pivotal for global influence. The deals announced this week could serve as a benchmark, indicating which country's tech approaches gain favor in the Gulf and beyond. However, the long-term impact depends on the execution of these projects and Saudi Arabia's ability to sustain its investment pace, especially with some mega-projects facing delays. As the competition between China and the US for tech dominance plays out, the Gulf represents a visible arena where choices have global implications.