Tech companies seeking fortune in the Middle East have already entered a "wartime state."
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On the day the military conflict broke out in the Middle East, many domestic workers hadn't even seen accurate news on social media yet, but for companies on the front lines of overseas expansion, the shock had already transmitted directly into their internal groups.
Insiders at a Shenzhen technology company told All Weather Technology that they had never imagined war could be so close. Staff currently on business trips were immediately recalled, all scheduled flights were suspended, and the company urgently procured supplies for their team in Dubai.
This tense "sudden braking" scenario is a true reflection of the severe tests faced by some Chinese tech companies against the backdrop of escalating tensions in the Middle East.
Just last year, the Middle East was a feverishly popular “hot land” for Chinese enterprises going abroad, especially favored by tech giants and photovoltaic companies.
In the tech sector, not only have internet giants like Meituan and JD.com accelerated their layouts, but innovative Robotaxi tech companies represented by Baidu Apollo Go, Pony.ai, and WeRide have also entered this market.
Benefiting from the energy transition strategies vigorously promoted by multiple Middle Eastern governments, the market is experiencing explosive growth. Companies like JA Solar and Junda Stock are rushing to build factories in Oman.
When the shadow of war suddenly covers this land, all aggressive expansion plans instantly face life-or-death tests.
Adapt at Any Time
In the past one or two years, the Middle East has witnessed the surging advance of Chinese capital and technology, with multiple tracks converging here:
For tech companies, Meituan (Keeta) chose Saudi Arabia as its starting point for the Middle Eastern market in September 2024 and quickly expanded into Qatar, Kuwait, and the UAE;
JD.com plans to work with the Saudi Authority for Industrial Cities and Technology Zones to develop over 2 million square meters of industrial and logistics assets locally;
On the autonomous driving track, with support from local governments, Baidu Apollo Go, WeRide, and Pony.ai are leveraging Uber to expand their markets in Dubai and other places;
For medical devices, United Imaging’s high-end PET/CT uMI Panorama 35 has entered Kuwait, and Mindray’s information and support business has landed in Saudi Arabia and other countries as well;
Photovoltaic companies are advancing boldly, with major PV projects backed by Chinese manufacturers such as GCL Technology, Junda Stock, TCL Zhonghuan, and others.
Yet, with Israel and the U.S. launching large-scale joint military strikes against Iran—and after Iran’s counterattacks—UAE, Qatar, Saudi Arabia, and other neighboring countries have been affected, and the entire Gulf region was instantly swept into war.
The sudden crisis made many people gasp.
"At the time, we didn’t expect it to be so serious. We had originally planned to travel, but since flights were canceled, we didn’t go; looking back now, it feels like ‘dodging a bullet’." An unnamed internet technology company employee in Beijing told All Weather Technology.
And partners on the front lines have also quickly switched to a wartime state.
"Israeli clients are already working from home. Fortunately, we can still communicate normally these days." An insider at a Shenzhen security company told All Weather Technology.
Faced with the sudden geopolitical shock, based on our communications with various companies, although local business development has been interrupted in the short term, Chinese firms overseas have not panicked.
The first priority is those directly exposed outdoors—“people and cars.”
Keeta told All Weather Technology that they are closely monitoring the Middle Eastern situation, and the safety of riders, merchants, users, and employees has always been their top concern.
Keeta also stated that they are keeping in close contact with relevant departments in the Middle East, strictly following all government guidelines and directives, including instructions related to operations suspension or service adjustments. If necessary, specific regions will temporarily restrict or cease services to ensure community safety, and they will adapt quickly as the situation changes.
Robotaxi companies Apollo Go, WeRide, and Pony.ai have suspended services in certain areas.
To ensure testing safety, Apollo Go suspended operations within the UAE, while service in the Abu Dhabi area remains normal; Pony.ai first ceased road testing in Dubai and Doha, but after evaluation, resumed testing in Doha on March 2nd;
WeRide also halted fleet operations in Dubai, but its commercial fleets in Abu Dhabi and Riyadh, Saudi Arabia, continue to operate normally.
This sudden outbreak of war is testing everyone’s ability to localize and manage risk.
Geopolitical Risk: A Mandatory Question
In recent years, the Middle East has become a “hot soil” for Chinese enterprises going overseas.
On one hand, competition in the domestic market is increasingly fierce, and companies urgently need to seek incremental space abroad to relieve domestic “involution.”
On the other hand, many Middle Eastern countries are undergoing economic transformation. Top-level plans like Saudi Arabia’s “Vision 2030” try to break free from a single reliance on oil, opening doors to foreign companies in high-tech, new energy, and other tracks.
Take the Robotaxi industry as an example. One autonomous driving company executive told All Weather Technology: "The development of L4 Robotaxi in the Middle East is a top-down initiative, with a clear timetable, so everyone is proactive. Also, since there aren’t really any local Robotaxi companies, there’s no local protectionism, which motivates them to bring in foreign investment."
Against the backdrop of energy transition in the Middle East, a factory-building surge by Chinese giants has arrived.
The massive new energy plans put forward by Middle Eastern governments have attracted a large number of heavy asset projects. As early as June 2024, Junda Stock signed a non-binding letter of intent with an Omani government entity, planning to invest about $560 million to build an N-type TOPCon cell production base with a total capacity of about 10GW. Its 5GW first-phase project is expected to be commercialized by 2026.
In November of the same year, JA Solar signed a memorandum of understanding with the UAE, planning to build a 2GW solar cell and module factory.
With such attractive policy dividends and a market blue ocean, Chinese companies have launched a frenzy of "gold mining" in the Middle East.
In this process, geopolitical risks were often ignored by the market, perhaps just relegated to a formatted risk warning at the end of the due diligence report.
But with this sudden eruption of war, geopolitics has changed from a low-probability paper event to a real variable costing real money.
Those heavy-asset projects with investments in the hundreds of millions are extremely passive in the face of uncontrollable military conflict. If war causes flight routes to be suspended or critical infrastructure to be damaged, companies will face the heavy price of huge investments going down the drain and ruptured supply chains.
At the same time, whether the previously “top-down” openness of countries like Saudi Arabia will shift under the external pressure of national games and camp confrontation remains unknown.
It is undeniable that the Middle East remains one of the few global markets with massive purchasing power, but the feverish window where you could "mine gold with your eyes closed" has already ended.
When regional conflicts turn from occasional black swans into structural normality, the lesson for Chinese enterprises going abroad is not only how to quickly secure orders, but also how to balance the accounts of business interests and political risks under extreme pressure and truly build a system resilient against volatility.
Risk Warning and DisclaimerThere are risks in the market; investment requires caution. This article does not constitute personal investment advice, nor does it take into account the specific investment goals, financial circumstances, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article suit their particular situation. Invest accordingly at your own risk. ```