South Korean tech giants, including Samsung and Naver, are expanding into the Middle East as the region intensifies its focus on artificial intelligence (AI) to diversify its oil-reliant economies.
Countries like the UAE and Saudi Arabia are ramping up investments in AI, creating opportunities for collaboration with South Korean companies known for their advanced technology and competitive pricing.
Samsung and TSMC Explore UAE Chip Plants
According to the Wall Street Journal, Samsung Electronics and Taiwan Semiconductor Manufacturing Co. (TSMC) are considering building semiconductor manufacturing facilities in the UAE. Though discussions are still in the early stages, such projects could cost over $100 billion.
However, industry experts have raised concerns about the Middle East’s sandy environment and the challenge of securing the superclean water necessary for chip production. Despite these hurdles, both companies are exploring the potential of the UAE as a hub for AI and semiconductor development.
Naver to Open Middle East Headquarters
Naver has announced plans to open its regional headquarters, Naver Arabia, as part of Saudi Arabia’s Regional HQ program.
The headquarters will oversee operations in the Middle East and collaborate on national technology projects. Naver also plans joint ventures with Saudi government entities, including projects with the Saudi Ministry of Municipalities and Housing involving digital twin technology.
The move comes as Saudi Arabia invests heavily in AI, aiming for the sector to contribute 12% to the country’s GDP by 2030. Naver executives recently attended the Global AI Summit 2024 in Saudi Arabia, signing agreements to collaborate on AI, cloud technology, data centers, and robotics.
Korean AI Startups Also Expand in the Middle East
Several Korean AI startups are joining the region’s AI push. Rebellions and FuriosaAI have partnered with Saudi energy giant Aramco to collaborate on supercomputing and AI projects. Wrtn Technology, specializing in generative AI, is also planning to open a regional headquarters in the Middle East after being selected for Dubai’s AI accelerator program.
The Middle East’s stable decision-making structures and long-term investment strategies make it an attractive market for South Korean tech firms, as the region positions itself as a leader in AI and advanced technology.
Source: Wall Street Journal, Naver press release