Together with IT provider and integrator NexTek Solutions and Quectel, a supplier of wireless modules, Huawei plans to develop narrowband IoT solutions to target the relevant regional needs and conditions. The arena for this development is the Middle East, where the IoT is being driven by smart cities. Governments in this region have made expanding smart cities a key goal of their national agendas and begun to initiate innovative projects that stand as a reference for smart city development worldwide. The Smart City Center of Excellence in Dubai is acting as a testing ground and platform for leading industrial companies. Huawei plans to invest US$ 200 million in its OpenLabs over the next three years.
These collaborations are just a further development stage of the Chinese strategic and operational focus on the Arabian market, where Huawei is already working with numerous cities and governments on smart solutions and systems for IoT cities, establishing research centers, and operating data centers.
Smart city expansion, but also public safety, transport, and education are particularly important in the region. Chinese companies – in addition to Huawei, also Alibaba – that cooperate closely with the respective governments, and thereby outdo other technology providers in the lucrative market, do especially well in this region.