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HANGZHOU, May 12 -- Aliyun, Alibaba's cloud computing subsidiary, signed a deal to set up a technology joint venture with Dubai-based Meraas on Tuesday, in order to boost big data and cloud computing services in the Middle East and North Africa region(MENA).

The new company, to be headquartered in Dubai, will offer system integration services to help private companies and government institutions in the region to reduce IT spending.

It will build Aliyun's seventh data center, with four others in the Chinese mainland, one in Hong Kong and one in the United States.

Neither company disclosed the investment amount or their separate stake.

The company will offer services for six key pillars including transport, communications, infrastructure, electricity, economic services and urban planning to help transform the emirate into a smart city, said Meraas Chairman Abdulla Al Habbai.

"We strongly believe that the new company will alter the information technology landscape of the region," said Abdulla Al Habbai.

"Dubai's advanced infrastructure and economic strength is a good match for our technology edge, and with Meraas we will be able to provide local entrepreneurs with vital infrastructure that will ignite innovation and help them to succeed," said Jack Ma, Founder and Executive Chairman of the e-commerce giant Alibaba Group.

The Information and Communication Technology (ICT) industry in the MENA region is witnessing unprecedented growth. An International Data Corporation (IDC) report anticipates regional ICT spending to surpass 270 billion U.S. dollars in 2015.