South Korean IT and gaming companies are expanding their operations in the Middle East, particularly in Saudi Arabia and the United Arab Emirates (UAE), despite military tensions in the region affecting key business schedules. Companies are strengthening their foundations by launching local mapping services and expanding game distribution.
The international real estate and urban development exhibition, Cityscape Global 2026, scheduled to take place in Riyadh, Saudi Arabia, has been postponed to February next year due to heightened military tensions in the region.
This postponement has drawn attention to the business activities of South Korean IT and gaming firms operating in the Middle East. Naver, which planned to unveil its outdoor delivery robot at the event, now faces uncertainties regarding its launch schedule.
Naver is continuing its existing operations in Saudi Arabia while expanding local services. On October 29, it launched the open beta of its mapping app, Baladi Plus. Following its contract with the Saudi government to build a digital twin platform in 2023, Naver is now introducing mapping services aimed at local consumers.
Saudi Arabia has established the Vision 2030 strategy to diversify its oil-dependent economy, investing in smart cities and digital infrastructure. Naver is leveraging this demand for digital transformation by developing digital twin projects in major cities such as Mecca, Medina, and Jeddah.
The launch of Baladi Plus is part of Naver's efforts to expand its digital infrastructure business in Saudi Arabia. The app is operated by Naver Innovation, a joint venture between Naver Cloud and the Saudi National Housing Company (NHC).
Naver plans to add features such as reservations, delivery, and artificial intelligence (AI) agents to the local mapping app. The strategy aims to create a super app that connects local users with various lifestyle services, thereby diversifying revenue sources in the Middle East as user acquisition and service expansion progress.
In the gaming sector, companies are also moving to expand their overseas operations from the UAE. Nexters signed a memorandum of understanding (MOU) with the Dubai Media Office on October 30 to promote the gaming industry and is seeking to expand its app market platform, One Store, internationally. The company plans to support local developers in entering overseas markets and to expand its game publishing business.
Nexters established a partnership with the Dubai Multi Commodities Centre (DMCC) last year and is currently advancing its business through its local entity, Nexters Hub. With the Dubai government actively fostering the gaming and Web3/blockchain industries and attracting foreign companies, Nexters aims to strengthen local collaborations. The geographical advantage of Dubai, connecting Europe and Southeast Asia, is also a factor in its selection as a base for overseas operations.
A Nexters representative stated, "Dubai is proactive at the government level in fostering the gaming industry, and there is significant demand for blockchain games."
Nexon also has a blockchain business unit, Nexspace, based in Abu Dhabi, UAE. Nexspace is responsible for integrating blockchain technology with Nexon's game intellectual properties (IPs) and is working to expand the MapleStory Universe ecosystem.
The Dubai government aims to position the city among the top 10 gaming industry hubs globally by 2033 through its Dubai Gaming Program 2033 (DPG33). The initiative plans to create 30,000 jobs in the gaming sector and increase the contribution to the gross domestic product (GDP) by approximately $1 billion.
However, ongoing military tensions in the Middle East have raised concerns about the impact on local business operations, especially with changes to major event schedules. There are voices suggesting that if the instability in the region persists, it could burden local workforce management and the advancement of new projects.
In response, Naver is taking measures to ensure stable operations in the region. For services related to the mapping app, the company is facilitating the return of employees and their families currently in Saudi Arabia to South Korea or relocating them to neighboring countries, while essential personnel for the app's launch are working remotely from within the region.
A Naver representative stated, "We are focusing on ensuring personnel safety and business continuity by supporting remote work for those who can operate from neighboring countries."
* This article has been translated by AI.
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