 |
Photo: Kakao Mobility |
[Alpha Biz= Kim Jisun] Kakao Mobility has begun expanding into the Middle Eastern market through Saudi Arabia’s large-scale Diriyah smart city project, but escalating geopolitical tensions in the region are emerging as a potential risk to the initiative.
Recent military tensions between the United States and Iran have raised concerns that conflict could spread to Gulf allies. The closure of the U.S. Embassy in Riyadh, Saudi Arabia, has further heightened geopolitical uncertainty, prompting worries that regional instability could weaken momentum for new business projects.
On Feb. 23, Kakao Mobility signed a paid proof-of-concept (PoC) contract to supply integrated mobility solutions for the Diriyah Project, a massive urban development initiative led by the Public Investment Fund (PIF).
The Diriyah Project is a $63 billion (about 93 trillion won) infrastructure and city development project aimed at transforming areas surrounding Diriyah in Riyadh, the Saudi capital. As part of the Saudi government’s “Giga Project” initiatives, the development covers about 14 square kilometers and will include luxury resorts, hospitals, shopping centers and other facilities.
Under the agreement, Kakao Mobility will provide a full-stack parking solution that combines local parking infrastructure data with software based on the **Kakao T user environment.
The company plans to deploy its system initially in three zones with capacity for about 5,000 vehicles, part of a larger development expected to accommodate more than 60,000 vehicles across the site.
Kakao Mobility is also focusing on building an integrated mobility platform. The system will include indoor navigation capable of operating in large underground parking areas where GPS signals are unavailable, along with AI-based space optimization and demand forecasting technologies.
The company plans to first conduct a parking PoC in areas of the Diriyah development that are currently partially open, ahead of the project’s planned completion in 2030. Based on the results, Kakao Mobility intends to discuss with Diriyah Company the potential expansion of its parking solutions across the entire development site.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
