Chinese e-commerce giant Alibaba Group Holding Ltd. is currently seeking to establish partnerships with companies from the United Arab Emirates and Saudi Arabia.
In a sense, the mentioned intentions of the specified business structure are related to the current configuration of the system of international relations and the political conjuncture. Today, China is taking actions aimed at deepening ties with the countries of the Persian Gulf, which are already at a high level. In this vector of Beijing’s foreign policy, Alibaba intends to form and develop cooperation with companies based in Saudi Arabia and the United Arab Emirates.
The probability of achieving the mentioned goal by the Chinese e-commerce giant is high. In this case, there is a situation where both sides of potential cooperation have some kind of material and financial arguments in favor of a successful interaction. Investors from the Persian Gulf countries have a significant resource in the form of money. Alibaba is a major player in the sphere of e-commerce. The ownership structure of this business giant includes a multifunctional infrastructure.
Pooling the resources of participants in a potential partnership is likely to produce a significant result. At the same time, investors around the world are currently being cautious about new spending amid the difficult global economic situation. This circumstance of the current configuration of financial reality may complicate the formation of a partnership between the e-commerce giant and companies from Saudi Arabia and the United Arab Emirates.
Alibaba President Michael Evans, at a panel discussion at the World Government Summit in Dubai, in response to a question about how his firm implements initiatives in the area of industrial policy, said that the brand is aimed at cooperation, which is a slightly unusual concept for an organization that is part of the Chinese business structure. He also noted the intention to implement relevant plans in the Persian Gulf countries. Michael Evans announced his intention to start partnerships with companies from the United Arab Emirates. He also said that Alibaba has finished doing something very interesting in Saudi Arabia, without specifying what exactly is meant in this case.
The e-commerce giant is currently seeking to regain its position. For many years, the company has faced sanctions from the Chinese government. Alibaba also made mistakes in its business strategy, which caused serious problems, including financial costs. Against the background of the troubles of recent years, the market positions of the brand have been shaken. Alibaba has also lost its status as a leader in the Chinese technology industry due to the pressure of difficulties. The co-founder of the company, Jack Ma, in November, announced the need to adjust the brand’s course.
Michael Evans in Dubai stated that a partner in the Gulf states is an opportunity to be involved in a dialogue about what is happening.
Over the past few years, the interaction between China and the mentioned region has significantly strengthened. Currently, the countries of the Persian Gulf, which have large oil reserves, are striving to expand their global influence. There is also a request for investments in this region that will diversify the local economy away from hydrocarbons. Last year, Saudi Arabia and the United Arab Emirates received an invitation to join the BRICS.
At the same time, companies from the Persian Gulf countries are currently facing opposition from the United States. In this case, Washington’s attention is focused on firms that, according to the American authorities, have too high a level of cooperation with Beijing. Abu Dhabi-based G42 told reporters this week about scaling back its presence in China and announced plans to invest in major Western markets to allay the concerns of the United States.
As we have reported earlier, Alibaba Promotes Millennials to E-Commerce Leadership Roles.
