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Information technology and gaming companies based in South Korea shifted to the Middle East to seek global growth drivers as the oil-rich countries and regions are expanding IT infrastructure developments.
An online giant based in South Korea, Naver Corp., has begun building a digital twin platform, a virtual representative of an object or system designed to reflect a physical object correctly in Saudi Arabia.
In October 2023, the company won a $100 Million deal to establish the platform in major cities, including Riyadh, from the Kingdom’s Ministry of Municipal and Rural Affairs (MOMRAH).
The metaverse segment of the online juggernaut has been working with the Sharjah Media City of the United Arab Emirates to jointly develop metaverse technology and content.
An official from Naver said, “We aim to get rid of the image of a domestic-only company through global expansion centered on the Middle East.”
Policies to Avoid Dependence on Big Technology Companies
According to the data presented by Frost and Sullivan, in the Middle East, the information and communications technology (ICT) industry was estimated to experience a growth of 12.8% to $95 Billion by the end of 2025, up from $84.2 Billion in 2020.
Major technology companies in Saudi Arabia, UAE and other major Middle Eastern countries are actively investing in artificial intelligence to reduce their economic reliance on oil.
Government authorities generally give importance to tech companies based in South Korea as they aim to establish IT infrastructures without relying on renowned technology firms in English speaking nations such as the USA.
UAE and some of the Middle Eastern countries performed various steps to attract IT companies. The country provides a visa for investors and experts in AI, big data and software to remain intact for 10 years.
IT industry sources Policies like this ease business operations in regions other than major markets, such as the USA, where the big tech companies are already been dominating and countries in Europe that have tough rules on privacy and copyright.
South Korea’s Cyber Security, Cloud and Game
The cyber security, cloud and gaming companies have boosted their presence in the region. An information security solutions provider built a joint venture with Saudi Arabia Information Technology (SITE). The Kingdom’s sovereign wealth fund and public investment fund (PIF) fully funded a security and cloud service national enterprise.
A South Korean cloud infrastructure firm, Bespin Global Inc., joined hands with the cloud business of the Emirati telecommunications company to become the region’s top managed service provider.
Game developers based in South Korea are actively working on blockchain games in the Middle East. The developer of the multiplayer, WeMade Co., which is a roleplaying game (MMORPG), Mir4, developed WEMIX MENA Ltd., a unit in the UAE, as a base for the blockchain game and its cryptocurrency WEMIX businesses.
A WeMade official in Seoul said, “The region is business-friendly for the virtual asset and blockchain game sector.” and “UAE Authorities offer tax benefits with easier regulatory frameworks for digital assets in the free zones.”
The UAE has many free zones, special economic areas that have special tax regimes, customs and import regimes. A framework of regulations governs their framework.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
