– Establishment of a joint venture between a PIF technology subsidiary and South Korea’s AhnLab to develop cybersecurity technologies localized for Saudi Arabia

– Investment exceeding SAR500 million ($133 million) allocated by Saudi Information Technology Company (Site) and its subsidiary, Site Ventures, for research and development within the joint venture

– Strategic acquisition of a 10 percent stake in AhnLab by Site Ventures to bolster collaborative business endeavors and adapt cybersecurity solutions to meet evolving market dynamics in Saudi Arabia and the MENA region

A subsidiary of the Public Investment Fund (PIF) dedicated to technology is poised to initiate a joint venture with South Korea’s AhnLab, aiming to foster and adapt various cybersecurity technologies within Saudi Arabia. 

According to reports from the state-run SPA news agency, Saudi Information Technology Company (Site) and its subsidiary, Site Ventures, are earmarking over SAR500 million ($133 million) for research and development endeavors in this collaborative effort.

The new venture will be predominantly owned by Site, holding a 75 percent stake, while AhnLab will retain the remaining 25 percent, as outlined in an official statement from AhnLab. Launching is anticipated in the first half of 2024.

Furthermore, Site Ventures is set to acquire a 10 percent share in AhnLab, further cementing their collaborative business ties.

Saad Alaboudi, CEO of Site, expressed that this strategic investment aligns with Site’s ongoing development initiatives, emphasizing the importance of localizing cybersecurity technologies to meet the evolving market demands within Saudi Arabia and the broader MENA region.

CEO Suk-Kyoon Kang of AhnLab highlighted the joint venture’s mission to tailor AhnLab’s cybersecurity solutions to suit the specific needs of the MENA market, particularly in Saudi Arabia to expedite global expansion.

Recent reports, including from The New York Times, have highlighted Saudi Arabia’s ambition to establish a $40 billion fund dedicated to artificial intelligence (AI) investments. 

Saudi officials are keen on supporting the growth of chip manufacturers and data centers, essential components for advancing computing capabilities.

There have even been discussions about establishing AI companies under PIF’s purview.

Yasir Al-Rumayyan, Governor of PIF, underlined in February the kingdom’s potential to emerge as a prominent hub for AI activities globally, outside the United States.