SITE, Korean firm to launch cybersecurity venture
New entity is expected to be launched during first half of 2024
The Saudi market is poised to benefit from advanced cybersecurity solutions through a new venture established by a Public Investment Fund-owned company and Korean firm AhnLab.
Saudi Information Technology Co., also known as SITE, will hold a 75 percent stake in the local joint venture to be set up in the Kingdom, with the Korean company holding the remaining 25 percent, according to a press release.
The new entity is expected to be launched during the first half of 2024, subject to regulatory approvals and the fulfillment of certain commercial conditions, it added.
Saad Al-Aboodi, CEO of SITE, said: “This new joint venture is one of many ambitious investments that SITE is developing. We recognize our strategic role to localize top-tier cybersecurity technologies in our country and the region as a whole, to address the evergrowing market dynamics and demands while maintaining the highest standards of excellence to our clients in both the public and private sectors.”
The JV will market, offer, and localize AhnLab’s cybersecurity solutions and services to clients in Saudi Arabia. This includes the company’s cloud and artificial intelligence-based platform, which collects and analyzes logs from various systems, aiding customers in prioritizing and managing cyber risks.
The partnership also aims to expand the new company’s services, including generative AI security, to the Middle East and North Africa region in the future. “The establishment of this joint
venture signifies a long-term cooperation based on the competitive strengths of both companies to grow together in the Middle East region,” said Suk-Kyoon Kang, CEO of AhnLab, in the release. “Through the new JV, we expect to jointly tailor our technologies, such as cybersecurity, cloud and AI, to the needs of the markets of the Middle East, including Saudi Arabia, and accelerate global growth,” he added.
In conjunction with the establishment of this company, SITE Ventures, a wholly owned subsidiary of SITE, will acquire a 10 percent stake in AhnLab to further strengthen business cooperation.
The investment amount is approximately SR206 million ($54.93 million), with a payment due date of June 27, the release noted.
This falls within SITE’s goal to contribute through its national capabilities and international partnerships to the development of innovative offerings in cybersecurity, cloud computing and software development as well as human capital development in the Kingdom.