Alibaba's cloud computing service Aliyun is going to set up a database centre in Dubai.
The Chinese e-commerce giant will team up with Dubai holding company Meraas Group to form a new technology company.
The company will provide cloud computing services for enterprises and government agencies in the Middle East and North Africa.
Wang Ziling, a communications officer with Aliyun, explains further on the new company.
"Aliyun will provide cloud computing products and technologies. Our cooperation will focus on integration and service based on the demands of our customers. We will make some key breakthroughs in big data analysis and cloud computing. The new company will serve Dubai in six pillar areas, including transportation, communication, infrastructure, economic services and city planning."
Dubai is an important intersection along the "One Belt, One Road" trade route.
Alibaba's move could provide designated cloud computing services for Chinese companies that want to expand in Middle East and African markets.
The Dubai database facility will be Aliyun's seventh centre around the world.
Aliyun is also planning to set up database centers in Japan, Singapore and Germany.