K-pop giants like Hybe and SM Entertainment are increasingly interested in the Middle Eastern music market. Hybe Chairman Bang Si-hyuk recently met with United Arab Emirates President Mohamed bin Zayed Al Nahyan to discuss potential collaboration in K-pop ventures, while SM Entertainment signed a memorandum of understanding with the Saudi Arabian Ministry of Culture to establish a studio for content creation and host a large-scale K-pop concert in Saudi Arabia in November 2022. Kakao Entertainment's acquisition of SM Entertainment also led to discussions with Saudi Arabia Tourism Authority officials to leverage their intellectual property for cultural exchanges. However, doubts from industry insiders have arisen regarding the potential profitability of the Middle Eastern music market, citing its relatively small market size and low current music business profitability. The Middle East and North Africa region has shown the fourth highest growth rate in recorded music revenues in 2023, but its market size remains much smaller than other regions like the US, Japan, and Latin America. Despite the large population of young people in Saudi Arabia and high internet penetration, some K-pop concerts in the region have faced challenges, with a K-pop concert promoter noting that certain events were canceled and expressing concerns about the lineup of K-pop artists not meeting local fans' expectations. Industry sources also indicate that the Middle East is considered a lower priority compared to the US, Japan, and Latin America for K-pop companies due to the higher potential for success in those regions.