Chinese e-commerce giant Alibaba Group Holding has sought to partner with local firms in Saudi Arabia and the United Arab Emirates as China deepens its ties with the Gulf.

“One of the things we’ve chosen to do, which is a little unusual for a Chinese company, is we partner,” Alibaba’s president, Michael Evans, said on a panel in Dubai’s World Government Summit, responding to how his firm navigates industrial policy initiatives. “And partnering in a local market, we’ve done it here in the Gulf Cooperation Council (GCC). We’re going to do it in the UAE. We’ve just finished doing something very interesting in Saudi.”

Alibaba is trying to stage a comeback after years of government punishment and strategic missteps that cost the e-commerce operator its place as leader of the country’s tech industry. Co-founder Jack Ma in November urged the company to correct its course.

“A local partner is basically an opportunity to keep you very tightly integrated in the dialogue about what’s happening,” Evans said. 

Gulf countries have been deepening ties with Beijing over the past few years as the oil-rich region expands its global influence and seeks investments to diversify its economy away from hydrocarbons. Last year, the UAE and Saudi Arabia were among a few countries invited to join the BRICs bloc in a push for expansion largely driven by China.

These efforts are complicated by pushback from the US on entities perceived to have close ties with Beijing. Abu Dhabi’s G42 told Bloomberg this week it’s paring back its presence in China and has pledged to invest in key Western markets in an effort to assuage US concerns. BLOOMBERG

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