South Korea’s Naver signs a MOU with Saudi Data & AI Authority (SDAIA) to collaborate on Arabic language AI development, cloud computing, and robotics as part of Saudi Vision 2030

In a landmark partnership, South Korean tech giant Naver Corp. has joined forces with Saudi Arabia’s state-run Saudi Data & AI Authority (SDAIA) to develop an Arabic large language model (LLM), aiming to boost AI innovation in the region. The agreement was formalized with the signing of a memorandum of understanding (MOU) on September 10, 2024, during the Gain Summit 2024 in Riyadh, Saudi Arabia.

Under this MOU, Naver Cloud Corp. and Naver Labs Corp. will collaborate with SDAIA to build and manage data centres, provide cloud services, and co-develop AI-driven technologies, including robotics. This collaboration is a significant step in advancing the Arabic-speaking AI ecosystem, as Naver has already demonstrated its capabilities in the field with its advanced Korean-language AI model, HyperCLOVA X, which outperforms international counterparts in specific language tasks.

Saudi Arabia’s ambitious AI sector, which is set to contribute $135.2 billion to the nation’s GDP by 2030, is key to the country’s Vision 2030, led by Crown Prince Mohammed bin Salman. This partnership is designed to further strengthen Saudi Arabia’s position as a leader in AI within the Middle East. Naver’s expertise in AI, robotics, and cloud computing positions the company as an ideal partner for Saudi Arabia’s transformative digital ambitions.

The Arabic LLM will support various applications including natural language processing (NLP) and translation services, particularly building upon Naver’s success with Papago, an AI-powered real-time translation service that recently added Arabic to its supported languages.

The MOU is part of a broader collaboration between Naver and Saudi Arabia that began earlier in 2024 with a five-year project to develop digital twin platforms for Riyadh and four other cities. Digital twins—virtual representations of physical entities—are key to Saudi Arabia’s smart city initiatives. This collaboration underpins the country’s efforts to create sustainable, technologically advanced urban environments.

Naver sees the development of LLMs as a crucial growth area. Following the success of HyperCLOVA X, the company is now setting its sights on creating a powerful Arabic LLM, which will facilitate deeper AI integration into Saudi Arabia’s public and private sectors.

The MOU not only marks a deepening of relations between South Korea and Saudi Arabia but also underscores the strategic importance of artificial intelligence and data science in shaping the future of both nations. As Saudi Arabia continues to invest heavily in AI, this partnership is expected to lead to significant advancements in technology, aligning with Saudi Arabia’s long-term goal of becoming a global hub for AI innovation.

Analysis

Political: This partnership is a significant political move as it strengthens diplomatic and economic ties between South Korea and Saudi Arabia. The collaboration aligns with Saudi Arabia’s Vision 2030, an ambitious initiative aimed at reducing the Kingdom’s dependency on oil by diversifying its economy. AI and technology are cornerstones of this plan, and Naver’s expertise in these fields is crucial in helping Saudi Arabia meet its objectives. By joining forces, both countries can leverage their technological prowess and strengthen their geopolitical positions. South Korea benefits from the visibility and influence of entering the burgeoning Middle Eastern AI market, while Saudi Arabia gains access to cutting-edge AI technology that will accelerate its growth into a global tech hub.

Social: The development of an Arabic LLM by Naver and SDAIA is a major step towards improving accessibility and digital literacy in the Arab-speaking world. AI models tailored to specific languages often enhance user experience by providing more accurate translations, better contextual understanding, and more efficient services for businesses and governments. This initiative will help bridge the digital divide, especially in a region where technological advancement has been uneven. Moreover, the partnership opens doors for knowledge exchange and technological collaboration between South Korean and Saudi professionals, creating a cross-cultural dialogue that fosters innovation and inclusivity.

Racial: This collaboration is significant in fostering inclusivity and representation in AI development. As major global language models are predominantly focused on English, the development of a robust Arabic LLM will empower millions of Arabic-speaking individuals by making advanced AI technology accessible in their native language. In a world where racial and ethnic diversity is often overlooked in AI, the creation of region-specific models like this is essential to ensuring that underrepresented languages and cultures are adequately served by technological advancements. The partnership between Naver and Saudi Arabia marks a meaningful step toward making AI more equitable and culturally sensitive.

Gender: The AI and tech sectors have traditionally been male-dominated, but partnerships like this one can serve as a catalyst for change by creating new opportunities for women in both South Korea and Saudi Arabia. Saudi Arabia, in particular, has been focusing on increasing female participation in various industries as part of Vision 2030. The partnership between Naver and SDAIA will likely lead to job creation in tech fields such as AI, robotics, and cloud computing, where women could play a more active role. By promoting gender diversity in high-tech fields, this collaboration has the potential to contribute to breaking gender barriers in the workplace.

Economic: Economically, the partnership is poised to have a profound impact on Saudi Arabia’s burgeoning AI industry. With PwC predicting that Saudi Arabia’s AI sector will contribute $135.2 billion to the national economy by 2030, the development of an Arabic LLM could serve as a cornerstone of this growth. The partnership also enhances South Korea’s presence in the Middle Eastern market, giving Naver a foothold in a region with rapidly growing demand for cloud computing, AI, and smart city technologies. Moreover, the project to develop digital twins for Riyadh and other cities signals further opportunities for economic development, as digital twins can improve urban planning, infrastructure management, and sustainability efforts.

From a broader economic perspective, this partnership also aligns with global trends toward AI-driven industries. By focusing on a language as widely spoken as Arabic, Naver and SDAIA are tapping into a market that includes over 400 million speakers, unlocking new business opportunities and revenue streams. This collaboration could potentially lead to the export of Saudi-developed AI solutions to other Arab-speaking countries, establishing the Kingdom as a tech leader in the region.