Saudi Arabia, South Korea Discuss Joint AI and Semiconductor Investment Fund
RIYADH — Saudi Arabia and South Korea are discussing the establishment of a joint investment fund targeting startups and small and medium-sized enterprises in deep technology sectors including artificial intelligence and semiconductors.
The proposal was discussed during a meeting between South Korean Minister of SMEs and Startups Noh Yong-seok and Saudi Minister of Communications and Information Technology Eng. Abdullah Alswaha, as the two countries explored practical cooperation in AI, SME digital transformation, startup expansion and venture investment.
The proposed fund is currently under negotiation between Korea Venture Investment Corporation and Riyadh Valley Company, with both sides expected to provide joint financing.
Its investment strategy would focus on SMEs and startups operating in advanced technology sectors, particularly artificial intelligence and semiconductors, as Saudi Arabia and South Korea seek to deepen their innovation and investment links.
Noh called for cooperation to complete the establishment of the fund during the current year.
The discussions also covered opportunities to support the digital transformation of SMEs, help startups enter international markets and strengthen venture capital activity between the two countries.
Noh highlighted Saudi Arabia’s position as an important Middle Eastern export destination for South Korean SMEs and cited previous cooperation between the two countries, including the opening of a Global Business Center in Riyadh in 2023 and bilateral startup events.
He also invited Saudi government representatives, investors and startups to participate in COMEUP, a global startup event scheduled for December.
The talks come as Saudi Arabia continues expanding international technology partnerships covering AI, semiconductors, digital infrastructure and investment. On July 16, the Saudi Ministry of Communications and Information Technology separately confirmed that Alswaha held a series of meetings in South Korea focused on AI, semiconductors, technology investment and digital-economy cooperation.
The proposed joint fund could provide another channel for connecting South Korean technology companies with Saudi capital and market opportunities while giving Saudi startups greater exposure to Korea’s advanced technology and venture ecosystem.
If completed, the initiative would deepen bilateral cooperation at the intersection of venture capital, emerging technologies and startup growth.
