Korea’s 23 SMEs to participate in Saudi-Korean Industrial Village
Korea’s 23 SMEs to participate in Saudi-Korean Industrial Village
The Line, Neom city [Provided by Neom]
More than 20 South Korean small- and medium-sized enterprises armed with advanced technologies in electric vehicles, biotechnology and robotics sectors are expected to join a project worth at least 13 trillion won ($9.9 billion) in Saudi Arabia to build production facilities in an industrial site in the Gulf nation.
About 23 SMEs will sign land contracts at the Yanbu Industrial Complex, located 300 kilometers north of Jeddah, in May and set up production facilities for operations, according to a list of companies that have been confirmed to join the Saudi-Korean Industrial Village obtained exclusively by Maeil Business Newspaper from the Saudi International Industrial Village Co. on Sunday.
In the list are five SMEs in the renewable energy sector, including EV component manufacturer EL B&T and hydrogen fuel cell developer Gaoncell; seven information technology and digital companies, including handset component manufacturer S-Connect and film-type leakage detection sensor manufacturer Yuminst; seven light and heavy industry companies, including autonomous robot developer Potenit and rubber product manufacturer TR Beltrack; and four bio and healthcare companies including diagnostic systems developers Asta and MiCo BioMed.
Saudi Arabia is expected to invest 13 trillion won in the Saudi-Korean Industrial Village in the first round. The Middle East country is hoping to transform itself into an advanced and environmentally-friendly industrial nation through the industrial village while Korean companies are hoping to win large-scale investments and advance into the vast regional market.
It is the first time that Saudi Arabia is opening up to SMEs from a single country and establishing an industrial complex. Industry insiders note that Saudi Arabia selected Korean players over those from German and Japanese peers that own advanced technologies as the Gulf nation has high expectations of the potential growth in Korean SMEs.
There are hopes that the partnership will allow more opportunity for Korean businesses to take part in the larger Neom City project in Saudi Arabia.
Faisal Abdulaziz, chief executive officer of the SIIVC who visited Korea recently, told Maeil Business Newspaper that the manufacturing facilities in the industrial complex will aim to begin operations from 2024.
