Huawei Technologies is in discussions with telecoms operators Etisalat and Saudi Telecom for managed services deals, according to Reuters.
The news agency says that Huawei has confirmed it is speaking to both operators, along with other operators in the region, for deals to manage their fixed-line services.
Huawei already has managed services deals with Oman's Nawras, a unit of Qatar Telecom, Saudi Arabia's Mobily - part-owned by Etisalat - and the UAE's du.
"Huawei has strong partnerships with most regional operators and is constantly looking into ways of expanding these," Xia Chaojie, vice-president for delivery and service, Huawei Middle East, told Reuters.
"We see an opportunity to do this through moving towards new technologies and also looking at fixed-line managed services. Our teams have initiated talks with all our fixed network partners in the Middle East, including operators like Saudi Telecom and Etisalat."
Xia estimated that the Middle East's managed services sector is worth around $1bn, with Huawei holding 55% of the market.