Key Points
- Naver Corp. will establish its regional headquarters in Naver Arabia, Saudi Arabia, by the end of 2024.
- The company has secured a $100 million contract to develop digital twin platforms for major Saudi cities.
- Naver signed an MoU with the Saudi Data & AI Authority to develop AI technologies for the Arabic language.
- Naver is focused on AI, cloud computing, and robotics as key growth pillars under Saudi Vision 2030.
Naver Corp., the South Korean IT giant, has announced plans to establish its regional headquarters, Naver Arabia, in Saudi Arabia by the end of 2024. This move aligns with Naver’s strategy to explore growth opportunities in the Middle East, focusing on artificial intelligence (AI), cloud computing, and robotics.
Naver’s decision to set up an office in Saudi Arabia is part of the government’s Regional HQ (RHQ) program, an initiative by the Ministry of Investment and the Royal Commission for Riyadh City to attract foreign businesses. Companies participating in this program can benefit from various forms of state support, including assistance with relocation, business setup, tax consultancy, and banking services.
Establishing Naver Arabia will enable the company to engage more deeply with Saudi Arabia’s ambitious Vision 2030 initiative. This initiative seeks to diversify the nation’s economy from oil reliance to technology-driven growth. As part of this vision, Saudi Arabia has launched a $100 billion fund to invest in AI and other technologies.
Naver Corp. has already secured a significant project, winning a $100 million contract with the Saudi Ministry of Municipal and Rural Affairs (MOMAH) to develop digital twin platforms for Riyadh and four other major cities. Digital twin technology allows for the virtual representation of physical systems for purposes such as simulation and maintenance, thereby enhancing urban planning and management.
In addition to the digital twin project, Naver is forming joint ventures with various partners in Saudi Arabia to expand its technological footprint in the region. Recently, the company signed a memorandum of understanding (MoU) with the Saudi Data & AI Authority (SDAIA) to collaborate on developing a large Arabic language model, cloud computing, and robotics technologies. This MoU was signed at the Gain Summit 2024, a global AI summit in Riyadh.
Earlier this year, Naver Corp. enhanced its AI-driven translation service, Papago, by adding Arabic translation capabilities, further demonstrating its commitment to the region. With the opening of its new headquarters, Naver aims to solidify its position as a leader in cutting-edge technology in the Middle East. It will leverage its existing capabilities, including its HyperCLOVA X AI platform and the recent launch of Asia’s largest data center.
