Saudi Telecom Company, the biggest telecommunications operator in the kingdom by market value, will invest $500 million in cloud services in a partnership with venture capital fund eWTP Arabia Capital and Alibaba Cloud, the technology arm of Chinese e-commerce firm Alibaba.
The agreement will help Saudi Arabia, the Arab world's largest economy, to become the "digital and cloud services hub" in the Middle East and North Africa region, it said in a statement.
“Through this project, STC aims to reinforce digital infrastructure and to leverage the proven cloud-based technologies and services of Alibaba Cloud to accelerate the growth of [the] local technology ecosystem … in alignment with Vision 2030 objectives,” it added.
The take-up of cloud services is increasing in the Gulf, aided by ongoing investment by cloud providers and the continued need for remote working arrangements due to the Covid-19 pandemic, according to the International Data Corporation.
The GCC public cloud market is expected to more than double in value by 2024, growing from $956m in 2020 to $2.35 billion at an annual growth rate of 25 per cent, the IDC said.
“Saudi Arabia is a strategic market for us,” Jeff Zhang, president of Alibaba Cloud, said in a statement.
"Alibaba Cloud is committed to delivering its best-in-class services and business practices to accelerate the digital transformation of its partners and customers in the kingdom," he added.
Saudi Arabia’s accelerated growth in cloud infrastructure is attracting global tech companies.
Last week, Saudi Aramco Development Company, a subsidiary of the state-owned oil company, partnered with Alphabet-owned Google to set up a new cloud region in the kingdom.
High-tech multinationals are "waking up to the booming Saudi digital economy", establishing physical data centres in the kingdom, said Sam Blatteis, chief executive of The Mena Catalysts, which advises technology companies on policy and government affairs in the region.
“Saudi Arabia has invested over $4bn in cloud computing to date … the kingdom’s cloud computing economy has grown over 50 per cent on average per year [over] the last four years,” Mr Blatteis added.
“The Saudi cloud economy's never-ending creation of data explains why demand in data centres will likely surge in the future … making the Saudi cloud computing market an emerging competitive arena for the world’s largest tech companies.”
In October, the Saudi Data and Artificial Intelligence Authority joined forces with Alibaba Cloud to develop smart cities using artificial intelligence.
And in December, SDAIA partnered with US company Dell to build advanced capabilities in emerging technology such as artificial intelligence and machine learning.
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
