“We are eager to invest, so please visit” Saudi Arabia woos Korean SMEs
Saudi Vision 2030 project is building a post-oil industrial complex
Wooing Korean firms in biotech, robotics, hydrogen vehicles, and EVs
CEO of fund controlled by Saudi royal family visits Korea to inspect 23 firms, including Gaoncell.
Reporter Yang Yeon-ho
The Middle East and Africa suffer from chronic water shortages, and this also includes Saudi Arabia and the United Arab Emirates. To conserve water, the region desperately needs solutions to prevent water loss from leaking pipes. Saudi Arabia found a Korean company that addresses this problem by using technology developed to prevent hazardous chemical leaks. The company is YUMINST, which developed the world's first liquid detection sensor strip (custom-printed flexible circuits) that can detect hazardous leaks. YUMINST is a participating firm in the Saudi-Korea Industrial Village (SKIV). The company's leak detection solution can detect and select all liquids, including water, chemical solutions and oils that are harmful to the human body.
Oil-producing countries in the Middle East are forging ahead with diversification policies to reduce their dependency on oil and gas. One such example is the adoption of a smart grid to improve efficiencies in the power grid and modernize existing infrastructure. Saudi Arabia is building an advanced metering infrastructure (AMI) throughout the country and needs battery solutions which is why it has shown interest in S-Connect, a Korean lithium battery firm. Lithium primary batteries are used as a power source for smart meters and advanced meter readers for electricity, gas, water, and heat sources. S-Connect's lithium batteries boast high and stable voltage, a battery lifespan of more than 10 years when maintained at room temperatures, an operational range between -55° C and 85° C , and a low discharge rate.
Many Korean SMEs were selected to participate in Saudi Arabia’s massive industrial complex project due to South Korea's technological expertise that is widely recognized and how the SMEs are good match with the goals of Saudi Arabia’s economic and industrial restructuring project.
Kim Gyo-woo, the CEO of Saudi International Industrial Village Company’s (SIIVC) Korean headquarters, sat down to talk with Maeil Business Newspaper on March 19th. He said, "The reason that Saudi Arabia is partnering with Korean SMEs instead of firms from Germany and Japan, which possess leading technology, is because Korean SMEs are growth-driven and passionate about pursuing new markets in addition to having technological expertise.”
The business portfolio of Korean SMEs is diverse, demonstrated by how they are players in renewable energy, medical equipment, biotechnology, EVs, and chemicals. This wide portfolio fits nicely with what Saudi Arabia deems as crucial businesses. Ever since 2016, Saudi Arabia has targeted digital technology, renewable energy, EVs, and biotech as new growth engines for their economy and has also been promoting Saudi Vision 2030. SKIV is one component of Saudi Vision 2030 and will play a critical role in preparing the economy for a post-oil era. Without any major manufacturing facilities except for its oil refineries and oil-related platforms, Saudi Arabia is eagerly advancing their vision to establish production capabilities.
A significant portion of the funds invested in the SKIV project come directly from the Saudi Arabian government and its sovereign wealth fund. SIIVC has made an initial investment of $10 billion to build an industrial complex. The 23 Korean firms participating in this project will operate as joint ventures within Saudi Arabia. Once the industrial complex is completed and the plants become operational by 2024, it is likely that more investment will stream in. The Saudi Arabia-Korea industrial complex being built in Yanbu covers an area of 2 million square meters and will be divided into four sectors. The sectors are information technology, renewable energy, general manufacturing, and medical/pharmaceuticals. Korean SMEs will operate the manufacturing facilities, oversee technology transfer, engage in manufacturing, and manage the complex.
Abdulellah Almutalaq, Chairman of the Saudi International Industrial Village Company (SIIVC) (right), and Fahad Al-Qurashi, CEO of Royal Commission in Yanbu, signing a MoU for investment in the Saudi-Korea Industrial Village at the Saudi Royal Commission headquarters in 2021. 【 Photo courtesy of SIIVC】
Gaoncell, which possesses hydrogen fuel cell technology, will build a hydrogen fuel cell production plant in Saudi Arabia as a member firm of SKIV. ELB&T, a South Korean EV maker, will become the first Korean EV firm to manufacture and sell EVs and lithium batteries in Saudi Arabia. The firm developed the world's first 7-speed transmission for high-speed EV motors and manufactures its own parts as well as lithium iron phosphate (LFP) batteries. The company’s high-speed EVs and parts manufacturing technology attracted the attention of Saudi Arabia officials.
Korean biotechnology firms are also expecting big growth. Asta, a manufacturer of medical diagnostic equipment is gearing up to sell its medical equipment which will be produced in Saudi Arabia for sale in that country as well as in North African and Middle Eastern countries. MiCo BioMed, another Korean medical equipment maker, plans to build a factory in Saudi Arabia. Their strategy is to provide technology transfer in molecular diagnostics, biochemical diagnostics, and immunological diagnostics to Saudi Arabia while exporting the locally-made products all over the Middle East.
[Reporter Yang Yeon-ho]
[ⓒ Maeil Business Newspaper & mk.co.kr Copyrights reserved]
“We are eager to invest, so please visit” Saudi Arabia woos Korean SMEs
Saudi Vision 2030 project is building a post-oil industrial complex
Wooing Korean firms in biotech, robotics, hydrogen vehicles, and EVs
CEO of fund controlled by Saudi royal family visits Korea to inspect 23 firms, including Gaoncell.
Reporter Yang Yeon-ho
The Middle East and Africa suffer from chronic water shortages, and this also includes Saudi Arabia and the United Arab Emirates. To conserve water, the region desperately needs solutions to prevent water loss from leaking pipes. Saudi Arabia found a Korean company that addresses this problem by using technology developed to prevent hazardous chemical leaks. The company is YUMINST, which developed the world's first liquid detection sensor strip (custom-printed flexible circuits) that can detect hazardous leaks. YUMINST is a participating firm in the Saudi-Korea Industrial Village (SKIV). The company's leak detection solution can detect and select all liquids, including water, chemical solutions and oils that are harmful to the human body.
Oil-producing countries in the Middle East are forging ahead with diversification policies to reduce their dependency on oil and gas. One such example is the adoption of a smart grid to improve efficiencies in the power grid and modernize existing infrastructure. Saudi Arabia is building an advanced metering infrastructure (AMI) throughout the country and needs battery solutions which is why it has shown interest in S-Connect, a Korean lithium battery firm. Lithium primary batteries are used as a power source for smart meters and advanced meter readers for electricity, gas, water, and heat sources. S-Connect's lithium batteries boast high and stable voltage, a battery lifespan of more than 10 years when maintained at room temperatures, an operational range between -55° C and 85° C , and a low discharge rate.
Many Korean SMEs were selected to participate in Saudi Arabia’s massive industrial complex project due to South Korea's technological expertise that is widely recognized and how the SMEs are good match with the goals of Saudi Arabia’s economic and industrial restructuring project.
Kim Gyo-woo, the CEO of Saudi International Industrial Village Company’s (SIIVC) Korean headquarters, sat down to talk with Maeil Business Newspaper on March 19th. He said, "The reason that Saudi Arabia is partnering with Korean SMEs instead of firms from Germany and Japan, which possess leading technology, is because Korean SMEs are growth-driven and passionate about pursuing new markets in addition to having technological expertise.”
The business portfolio of Korean SMEs is diverse, demonstrated by how they are players in renewable energy, medical equipment, biotechnology, EVs, and chemicals. This wide portfolio fits nicely with what Saudi Arabia deems as crucial businesses. Ever since 2016, Saudi Arabia has targeted digital technology, renewable energy, EVs, and biotech as new growth engines for their economy and has also been promoting Saudi Vision 2030. SKIV is one component of Saudi Vision 2030 and will play a critical role in preparing the economy for a post-oil era. Without any major manufacturing facilities except for its oil refineries and oil-related platforms, Saudi Arabia is eagerly advancing their vision to establish production capabilities.
A significant portion of the funds invested in the SKIV project come directly from the Saudi Arabian government and its sovereign wealth fund. SIIVC has made an initial investment of $10 billion to build an industrial complex. The 23 Korean firms participating in this project will operate as joint ventures within Saudi Arabia. Once the industrial complex is completed and the plants become operational by 2024, it is likely that more investment will stream in. The Saudi Arabia-Korea industrial complex being built in Yanbu covers an area of 2 million square meters and will be divided into four sectors. The sectors are information technology, renewable energy, general manufacturing, and medical/pharmaceuticals. Korean SMEs will operate the manufacturing facilities, oversee technology transfer, engage in manufacturing, and manage the complex.
Abdulellah Almutalaq, Chairman of the Saudi International Industrial Village Company (SIIVC) (right), and Fahad Al-Qurashi, CEO of Royal Commission in Yanbu, signing a MoU for investment in the Saudi-Korea Industrial Village at the Saudi Royal Commission headquarters in 2021. 【 Photo courtesy of SIIVC】
Gaoncell, which possesses hydrogen fuel cell technology, will build a hydrogen fuel cell production plant in Saudi Arabia as a member firm of SKIV. ELB&T, a South Korean EV maker, will become the first Korean EV firm to manufacture and sell EVs and lithium batteries in Saudi Arabia. The firm developed the world's first 7-speed transmission for high-speed EV motors and manufactures its own parts as well as lithium iron phosphate (LFP) batteries. The company’s high-speed EVs and parts manufacturing technology attracted the attention of Saudi Arabia officials.
Korean biotechnology firms are also expecting big growth. Asta, a manufacturer of medical diagnostic equipment is gearing up to sell its medical equipment which will be produced in Saudi Arabia for sale in that country as well as in North African and Middle Eastern countries. MiCo BioMed, another Korean medical equipment maker, plans to build a factory in Saudi Arabia. Their strategy is to provide technology transfer in molecular diagnostics, biochemical diagnostics, and immunological diagnostics to Saudi Arabia while exporting the locally-made products all over the Middle East.
[Reporter Yang Yeon-ho]
[ⓒ Maeil Business Newspaper & mk.co.kr Copyrights reserved]