The national flags of South Korea and Saudi Arabia.
South Korea’s 17 small- and mid-sized enterprises (SMEs) have been confirmed to participate in the Saudi-Korean Industrial Village (SKIV) project in Saudi Arabia, in which the Saudi royal family and government will invest about 10 trillion won ($7.52 billion) in the first round.
It is unprecedented for Saudi Arabia to open its doors to SMEs from a single country and create an industrial complex. The move comes as Saudi Arabia is seeking to reduce its reliance on oil and shift economic focus to high-tech manufacturing.
Maeil Business Newspaper has learned on Sunday that 17 Korean SMEs have recently completed the establishment of a local joint venture with Saudi International Industrial Village Company (SIIVC) and will hold a contract signing ceremony for land acquisition in the economic special zone city of Jazan in southwestern Saudi Arabia in the second week of October.
“The number of Korean SMEs participating in SKIV has been finalized at 17 after due diligence,” said an official familiar with the project. “We plan to start building local production facilities with the goal of full-scale operation starting next year.”
By Yang Yeon-ho and Yoon Yeon-hae
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]