Saudi Prince Courts Korean AI Firms in Gulf Tech Boom

Published Date : 09/07/2025 

Saudi Arabia and the UAE are rolling out the red carpet for Korean AI startups as they pivot from oil to advanced technologies, aiming to become global AI hubs. 

Back in the 1960s and 1970s, the Middle East was a land of opportunity for many South Korean construction workers, who labored there under the scorching sun to earn oil money.

Fast forward several decades, and the region is once again emerging as a land of opportunity for the Korean business circle. This time, Koreans are not begging for jobs. It’s countries like Saudi Arabia and the United Arab Emirates that are rolling out the red carpet for Korean artificial intelligence startups, as they bet big on their post-fossil futures.

From Riyadh’s futuristic city of Neom to the high-rise sprawl of Abu Dhabi and Dubai, Gulf nations are ramping up their pursuit of AI technologies, positioning themselves as the world’s next AI hub. Flush with petrodollars and bolstered by cheap electricity and low taxes, Middle Eastern countries are seeking investments in and partnerships with Korean AI startups.

“Saudi Arabia was once a fortress,” said a Seoul-based venture capitalist. 

Frequently Asked Questions (FAQS): 

Q: What is Saudi Arabia's Vision 2030?

A: Vision 2030 is a comprehensive plan launched by Saudi Arabia to reduce the country's dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, recreation, and tourism.

Q: Why are Gulf nations interested in Korean AI startups?

A: Gulf nations are interested in Korean AI startups because they seek to diversify their economies away from oil and gas, and they view AI as a key technology for future growth. Korean startups are known for their innovative solutions and strong technical expertise.

Q: What is the role of the Public Investment Fund (PIF) in Saudi Arabia's AI strategy?

A: The Public Investment Fund (PIF) is Saudi Arabia’s sovereign wealth fund and plays a crucial role in the country's AI strategy. It has launched Humane, an AI company, and is raising $10 billion in an AI-focused fund to invest in and support AI development.

Q: How are Gulf states supporting the growth of AI companies?

A: Gulf states are supporting the growth of AI companies through low electricity prices, tax incentives, and the establishment of specialized institutions and universities. They are also increasing their investments in AI through sovereign wealth funds and venture capital firms.

Q: What are some notable Korean AI startups that have gained traction in the Gulf region?

A: Notable Korean AI startups that have gained traction in the Gulf region include Rebellions Inc., FuriosaAI, and Nota AI. These companies are involved in areas such as AI chip design, autonomous driving, and smart surveillance. 

More Related Topics :