BUSINESS

From Market Entry to Local R&D: Chinese Tech Firms Scale Up in Dubai

Published: Dec. 2, 2025 3:56 a.m. GMT+8

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Dubai Internet City

Dubai Internet City, the Middle East’s first tech-focused free zone, is stepping up efforts to court Chinese tech firms as it deepens its role as a regional hub for AI, cloud computing, and digital innovation, according to the zone’s managing director.

Ammar Al Malik, executive vice president of TECOM Group and head of Dubai Internet City, told Caixin that major Chinese players including Huawei Technologies Ltd., Alibaba Cloud, Tencent Holdings Ltd.’s gaming unit, Baidu Inc.’s robotaxi unit Apollo Go, and China Mobile Group Co. Ltd. have already set up regional operations in the zone, shifting from initial market entry to localized R&D and product development.

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Dubai Internet City is intensifying efforts to attract Chinese tech firms, with major players like Huawei, Alibaba Cloud, and Baidu already present and shifting to local R&D.
The zone, launched in 2000, hosts global tech giants, contributes about 65% of Dubai’s tech-sector GDP, and supports firms' regional expansion.
Challenges for Chinese startups include geopolitics and market perception, but Dubai Internet City focuses on ecosystem-building and long-term impact.

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Who’s Who

Huawei Technologies Ltd.: Huawei Technologies Ltd. has established regional operations in Dubai Internet City. It is among the major Chinese tech players shifting from initial market entry to localized R&D and product development within the free zone.

Alibaba Cloud: Alibaba Cloud has established regional operations in Dubai Internet City, a tech-focused free zone. This move signifies a shift from initial market entry to localized R&D and product development for Chinese companies, as noted by Ammar Al Malik, head of Dubai Internet City.

Tencent Holdings Ltd.: Tencent Holdings Ltd.'s gaming unit has established regional operations within Dubai Internet City. This move highlights a trend of Chinese tech firms setting up in the city, which is a major hub for AI, cloud computing, and digital innovation in the Middle East.

Baidu Inc.: Baidu Inc.'s robotaxi unit, Apollo Go, has established regional operations in Dubai Internet City. This move signifies a shift from initial market entry to localized research and development and product creation, underscoring the company's commitment to the Middle Eastern market and the region's growing importance as a tech hub.

China Mobile Group Co. Ltd.: China Mobile Group Co. Ltd. has established regional operations in Dubai Internet City. The company is among the major Chinese players that have shifted from initial market entry to localized research and development and product development within the zone.

Microsoft Corp.: Microsoft Corp. is a global heavyweight located in Dubai Internet City, a tech-focused free zone. They are involved in a 200-megawatt data center project in the Emirates, in partnership with UAE-based G42, announced in November.

Oracle Corp.: Oracle Corp. is a global heavyweight in the tech industry. It has established a presence in Dubai Internet City, a tech-focused free zone in the Middle East. The zone aims to be a regional hub for AI, cloud computing, and digital innovation.

IBM: IBM is one of the global heavyweights, alongside Microsoft Corp., Oracle Corp., and Meta Platforms Inc., that are hosted at Dubai Internet City. The presence of such large anchor firms helps attract startups, connects with universities, and fosters steady innovation pipelines within the tech-focused free zone.

Meta Platforms Inc.: Meta Platforms Inc. is a major global heavyweights hosted at Dubai Internet City, the Middle East's first tech-focused free zone. This campus-style cluster contributes significantly to Dubai's tech-sector GDP.

Hisense Group Corp.: Hisense Group Corp., a Chinese appliance manufacturer, opened a local R&D center in Dubai Internet City in 2023. This center focuses on developing products specifically for consumers in the Middle Eastern market. Hisense is among the major Chinese players establishing regional operations in the free zone to support localized R&D and product development.

G42: G42, a UAE-based company, is partnering with Microsoft to build a 200-megawatt data center in the Emirates. This initiative highlights the region's increasing investment in digital infrastructure and Dubai's focus on seizing opportunities in the tech sector.

AI generated, for reference only