Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman Reaffirm Commitment to Market Stability

Saudi Arabia is emerging as a destination for Asian chip and artificial intelligence companies, not because it manufactures the most chips, but because it can provide the energy and infrastructure needed to run them at scale.

The shift is reflected in South Korean AI chipmaker Rebellions’ decision to establish its regional headquarters in Riyadh. The move brings together two sides of the expanding AI economy: companies that design computing chips and countries seeking the capacity to operate the data centers and digital systems those chips support.

Rebellions CEO Sunghyun Park told Asharq Al-Awsat that three factors made Saudi Arabia attractive: high energy availability, a commitment to developing AI infrastructure, and strong ambitions to build a sovereign AI ecosystem. Together, he said, they make Riyadh a suitable base for expanding the company’s AI chip business.

The Korean company’s move comes as Saudi Arabia invests in data centers and AI projects while seeking to accommodate rising demand for computing power. The article presents this development as part of a broader redrawing of technological power, in which the ability to host and operate computing infrastructure is becoming as important as the ability to manufacture chips.

South Korea is also strengthening its position. The government has proposed a record 821 trillion won ($596.92 billion) budget for 2027, up 12.8 percent from the current year. The proposal includes 21.3 trillion won for industrial water systems, electricity grids, and logistics services supporting semiconductor infrastructure, as well as 2.6 trillion won for semiconductors. Seoul is betting that public spending will help preserve the industry’s role in the economy as demand grows for high-bandwidth memory used in AI systems. Samsung Electronics and SK Hynix have reported strong profits from that demand.

“

Three main factors make Saudi Arabia an attractive destination for the company: high levels of energy availability, a commitment to developing AI infrastructure, and strong ambitions in sovereign AI.