News
Saudi Arabia Plans Digital Twins For 5 Cities, Including Mecca
The project involves the creation of a cloud-based platform that will become central to the Kingdom’s smart city project.
South Korean tech company Naver has signed a contract with the Saudi Arabian Ministry of Municipal, Rural Affairs and Housing (MOMRAH) to build and administer digital twins for five of the country’s biggest cities: Riyadh, Medina, Jeddah, Dammam, and Mecca.
The news comes after a visit from South Korean President Yoon Suk Yeol, who arrived in the Kingdom to discuss deepening economic ties, explaining that “If South Korea, which has cutting-edge technologies and a successful experience of industrial development, joins hands with Saudi Arabia, with its abundant capital and growth potential, we can create synergy stronger than any other nation”.

Naver has already signed a memorandum with MOMRAH to support Saudi Arabia’s digital transformation. Discussions have also taken place with Majed Al Hogail, Saudi Arabia’s Minister of Housing, on digitizing other aspects of city planning, transportation, and public safety.
The digital twin program reflects ongoing efforts to boost decision-making and improve digitization using AI, robotics, and cloud-based solutions. The project will be pivotal in the development of smart city infrastructure and will be used for a wide variety of tasks, including urban planning and flood monitoring.
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“Leveraging Naver’s globally competitive technologies, we aim to spearhead the second wave of export boom to the Middle East. With this project as a starting point, Naver will also act as a bridge for Korean IT startups entering the Middle Eastern market,” announced Chae Seon-ju, President of ESG and External Policy at Naver.
Korean company Naver emphasized that digital twins platform could become the foundation for numerous technologies and services in what could become a continually evolving project. South Korean and Saudi startups could also use the open platform cloud software for urban water management, real estate services, robotics, autonomous driving applications, and traffic planning.
News
Microsoft Plans $10 Billion-Plus Gulf Expansion Despite Iran Conflict
Security is shaping Microsoft’s approach, from resilience work with governments to what it will say about how the money splits by country.
Microsoft is planning more than $10 billion of investment across the UAE, Saudi Arabia, Qatar and Kuwait through 2030, Vice Chair and President Brad Smith told Reuters, calling the spending schedule aggressive. The Iranian conflict that began on February 28 has not persuaded the company to scale back.
“We’re sustaining all the investments we planned to make before this conflict started, and we are in fact adding to them,” Smith said. The $10 billion-plus total does not, however, show how large those additions are.
The investment, which Smith described as part of Microsoft’s continued infrastructure expansion, is aimed at cloud and AI infrastructure and at the company’s growing regional operations. Microsoft also intends to put more than $400 million into subsea and terrestrial connectivity across the Middle East by 2030.
The spending fits the region’s own ambitions too. Gulf governments have been investing heavily in AI infrastructure as part of a push to diversify their economies beyond oil and gas and turn themselves into global technology hubs. Major cloud and AI providers have been drawn in part by the land and relatively low-cost energy on offer.
Microsoft is widening its partnerships with regional AI companies, though not on identical terms. In 2024, it invested $1.5 billion in Abu Dhabi-based G42 for a minority stake, and Smith currently sits on G42’s board. Saudi Arabia’s Humain and Qatar’s Qai are working with Microsoft on selected priority areas, but Smith said the company does not plan to make capital investments in either.
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The conflict has added another strand to Microsoft’s work in the region. Since it began, Smith said, the company has supported regional partners with digital resilience assessments, and it is now working with Gulf countries through a digital resilience initiative focused on preparedness and the protection of critical data.
So far, the company has given no country-by-country breakdown of the investment, citing security among other factors. So while the headline figure is public, how Microsoft divides the spending among the four countries is not.
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