Naver signs $100M with Saudi government for digital platform project

Tech

Published: 24 Oct. 2023, 10:57 Updated: 25 Oct. 2023, 15:43

Naver signs $100M with Saudi government for digital platform project

Korean President Yoon Suk Yeol, third from left in the second row, participates in the contract signing ceremony between Naver and Saudi Arabia's Ministry of Municipal and Rural Affairs and Housing for establishing a digital twin platform for five Saudi cities. [NEWS1]

Naver clinched a $100 million digital twin platform contract with Saudi Arabia’s Ministry of Municipal and Rural Affairs and Housing, a deal that marks the Korean IT giant’s first large-scale project in the Middle East.

The news sent Naver’s shares up by nearly 5 percent during the trading session on Tuesday. It closed at 187,000 won ($140), up by 4.88 percent from the previous day.

Under the deal, Naver for the next five years will establish and operate a cloud-based 3D digital twin of five Saudi cities — Riyadh, Medina, Jeddah, Dammam and Mecca — on an open platform. The project will commence as early as next year.

A digital twin is a virtual replica of the real physical world, be it a person or an entire city, that updates itself in real time using technology such as sensors and cameras.

Naver, Naver Labs and Naver Cloud will participate in the project.

Saudi Arabia plans to utilize the digital replica for city planning, weather simulation and to make forecasts on natural disasters like floods.

Naver said it will make a “world-class” digital twin platform leveraging its expertise in AI, robot and cloud technology which the company has been focusing on since 2016 with the development of its mapping robot M1.

It said it has secured proprietary technology in replicating the city with less than 10-centimeter error range.

“Globally speaking, Naver is the only company that has digital twin technology with its own mapping equipment, AI for automation and cloud-based processing infrastructure,” said a Naver spokesperson.

Naver had tested the technology on several occasions like when it collaborated with the National Museum of Korea to provide augmented reality (AR) experiences of the exhibition and with Seoul Metropolitan Government to provide a 3D map service.

More opportunites

Naver expects the latest deal will help domestic IT firms to make inroads into the Middle East as new business opportunities are poised to be made from the open platform.

An AR or virtual reality startup, for example, can create a 3D real estate service based on the land and building data from the digital platform. A robotics startup can also make an autonomous robot that is able to run errands based on the digital twin map of the city.

In fact, LX and the Korea Water Resources Corporation, are participating in the latest project.

Starting with this project, Naver wishes to make a foray into the Middle East by establishing a local corporation and cloud region. Naver's IT business has been largely focused on Korea and other Asian markets.

“On the back of solid IT capabilities, [Naver] will tow the second wave of the export boom to the Middle East,” Chae Seon-ju, President of Naver's ESG and External Policy, said.

“Naver will act as a bridge for Korean IT startups to advance into the Middle East,” Chae said.

The project announcement came during President Yoon Suk Yeol's state visit to Saudi Arabia.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]