On February 28, Barcelona local time, Saudi Arabia's emerging e-commerce company Zode and Huawei Cloud officially signed a cooperation agreement. The signing took place during Mobile World Congress 2024, and was attended by Sami Alahmadi, CTO of Zode, Qi Xiaoxiao, President of Huawei Cloud Middle East Central Asia, and other senior executives from both organizations.
Zode is one of the latest challengers in the Saudi e-commerce market, committed to rapidly shaping and bringing consumers a more convenient and smooth online shopping experience, and ultimately becoming the world's leading online e-commerce platform in the Arab world. Notably, the two parties also mentioned in the cooperation agreement that they will develop and provide artificial intelligence services based on Arabic language and culture, which will further contribute to the formation of new technological forms of e-commerce in the Middle East. The two sides announced in the signing ceremony that Huawei Cloud will provide Zode with comprehensive technical support, including computing resources, data storage, database services, network architecture, SMS communication and security services, etc., to ensure the stable and efficient operation of the platform, and help it grow into an internationally competitive e-commerce platform at an early date. It is believed that with Huawei Cloud's technical support, the Zode platform will achieve overall molding and core function deployment within nine months.
The MENA region is rising to become the region with the most rapid growth in global e-commerce. According to authoritative organizations, the e-commerce market size in the region is expected to rise at a high rate with a compound growth rate of nearly 11% per year between 2023 and 2027, and is expected to reach a peak of $50 billion by 2027, according to forecasts. This growth momentum is due to the Middle East's latecomer advantage in building e-commerce and digital economy infrastructure, although e-commerce sales currently account for only 4% of total retail sales, compared to 15% in more developed regions, revealing the Middle East's huge potential for e-commerce market growth. In addition, more than 30% of the region's population is in the young and active age group of 15 to 29, a demographic that provides a solid foundation for e-commerce market expansion and consumption growth.
Chinese technology companies, represented by Huawei Cloud, are also playing an increasingly important role in the rising Middle East e-commerce market. As a strategic partner of many e-commerce giants in the Middle East, Huawei Cloud has built a data center in Abu Dhabi as a hub to provide reliable technology and intelligent service solutions to partners in the region. Since the opening of the Riyadh service area in September 2023, Huawei Cloud has deployed three Availability Zones (AZs) in the region, relying on its intelligent infrastructure system to provide cutting-edge, reliable, low-latency, and secure cloud services. In November 2023, Huawei also organized the "Go Cloud, Go Middle East" roadshow series in Shenzhen, Shanghai, Hangzhou, and Beijing, focusing on the development trends in the Middle East in key tracks such as AIGC, venture capital, media and gaming, and fintech, and demonstrating the confidence of Chinese companies in the long-term development and prosperity of the Middle East region. Dai Boyao, President of Huawei Cloud Middle East and Central Asia, said at the roadshow event, "Huawei Cloud will work hand in hand with overseas enterprises to bring China's experience in technology and innovation to the Middle East, and provide more and better choices for Middle Eastern customers and partners."
Translated with DeepL.com (free version)