Naver announced on September 23 that it plans to establish “NAVER Arabia,” its Middle East headquarters in Saudi Arabia, by the end of this year. (Image courtesy of Naver)
SEOUL, Oct. 28 (Korea Bizwire) – South Korean technology companies are rapidly expanding their presence in the Middle East, focusing on artificial intelligence (AI), cloud computing, and cybersecurity initiatives.
Naver, South Korea’s leading IT platform company, is spearheading this expansion. The company announced on September 23 that it plans to establish “NAVER Arabia,” its Middle East headquarters in Saudi Arabia, by the end of this year.
The tech giant plans to collaborate with Saudi Arabia on major national technology projects and establish joint ventures for specific initiatives, including the development of digital twin platform projects. Naver expects its B2B operations to expand globally from the Middle East, particularly in digital twin technology and sovereign AI development.
Earlier in September, Naver signed a memorandum of understanding with the Saudi Data and Artificial Intelligence Authority (SDAIA) at the Global AI Summit in Riyadh, agreeing to cooperate in AI, cloud computing, data centers, and robotics. A key aspect of this partnership includes developing a Large Language Model (LLM) based on Arabic language.
Mid-sized companies and startups are also entering the Middle Eastern market. On October 13, Korea Software Industry Association (KOSA) Chairman Cho Jun-hee, along with representatives from companies including Megazone Cloud, Upstage, and Wrtn Technologies, visited Saudi Aramco’s headquarters in Dhahran. During this visit, Megazone Cloud signed an MOU with Aramco for AI cloud research and operations cooperation.
In September, Aramco also formed partnerships with Korean AI semiconductor startups Rebellions and FuriosaAI. These collaborations reflect Saudi Arabia’s positive assessment of Korean AI technology capabilities. According to Tortoise Media’s “2024 Global AI Index,” South Korea ranks sixth globally in AI competitiveness, closely following the United States, China, Singapore, the United Kingdom, and France.
“Saudi Arabia recognizes Korea’s AI technological competitiveness and considers Korean services and products more cost-effective compared to U.S. big tech offerings,” an industry insider noted.
The National IT Industry Promotion Agency (NIPA) recently opened an IT Support Center in Dubai, UAE, hosting AI companies including Wrtn Technologies, Deepnoid, and Core Movement.
This expansion comes as wealthy Middle Eastern nations seek to diversify their economies away from oil dependency through digital transformation investments. Saudi Arabia’s Vision 2030 national development strategy notably includes South Korea among its five key partnership countries.
In the cybersecurity sector, AhnLab completed the establishment of Rakeen, a joint venture with Saudi cybersecurity and cloud provider SITE, on October 21. Another Korean cybersecurity firm, Genians, opened a new office in Dubai on October 18, planning to expand its presence through IT security exhibitions and roadshows across the region.
According to MarketsandMarkets, the Middle East cybersecurity market is projected to grow at an annual rate of 9.6% to reach $23.4 billion by 2028.
Kevin Lee (kevinlee@koreabizwire.com)
