UAE and South Korea Forge Strong Economic Partnership with Joint Projects and Investment Plans

The United Arab Emirates (UAE) and South Korea have reaffirmed their commitment to collaborate on joint projects and investment plans in various sectors, including energy, the arms industry, and overall economic and trade fields. The Ministry of Trade, Industry, and Energy in Seoul announced that the two countries had reached a consensus during a meeting between South Korea’s Industry Minister, Lee Chang-yang, and the UAE Minister for Economy, Abdullah bin Touq Al Marri, in Seoul.

The ministers acknowledged the ongoing efforts to implement business deals and cooperation agreements that were signed in January. They expressed their determination to achieve tangible results in trade promotion, advanced technologies, and the energy sector, among other areas. The January summit between South Korean President Yoon Suk Yeol and UAE President H.H. Mohamed bin Zayed Al Nahyan had resulted in the signing of 45 memorandums of understanding, two deals, and a letter of intent, with a combined value of $6.1 billion. The UAE also pledged to invest $30 billion in South Korea in the nuclear power, arms, and energy sectors.

As the details of the investment plan are being worked out, the ministers agreed to explore cooperation in emerging industries such as aviation, biotechnology, education, agriculture, and information and communication technology. They also committed to making joint efforts to secure a free trade agreement between South Korea and the Gulf Cooperation Council (GCC) at an early stage. The GCC consists of six countries: the UAE, Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait. Negotiations for the bilateral Free Trade Agreement (FTA) were underway, with the most recent session held in February.

The South Korean ministry stated that they would monitor the progress of planned projects with the UAE, as well as with major Middle Eastern nations like Saudi Arabia and Qatar, through high-level exchanges and ministerial-level cooperation channels.

Trade between the UAE and South Korea has been robust, with the UAE serving as South Korea’s second-largest trade partner in the GCC and the Arab regions as of 2022. The non-oil foreign trade between the UAE and South Korea amounted to $917 million in the first two months of 2023, representing a 9% increase from the previous year. In 2022, the total volume of non-oil trade exchanges reached $5.31 billion, marking a 14% year-on-year growth.

The UAE has announced plans to invest approximately $29.95 billion in South Korea over the next few years. These investments will be focused on key sectors such as industry, trade, shipping, communications, real estate, and commerce. On the other hand, South Korean foreign direct investment (FDI) in the UAE reached around $2.21 billion as of early 2021, indicating a substantial growth of 73% since the beginning of 2013.

According to the World Trade Organization’s Global Trade Outlook and Statistics Report 2022, the UAE’s trade in goods with the rest of the world reached $1.024 trillion in 2022, driven by higher oil prices and an increase in both exports and imports.

In conclusion, the UAE and South Korea are committed to strengthening their economic ties and expanding cooperation in various sectors. The joint projects and investment plans agreed upon by the two countries demonstrate their shared commitment to mutual growth and prosperity. The UAE’s significant investments in South Korea, coupled with South Korean FDI in the UAE, highlight the strong economic partnership between the two nations. As they work towards a free trade agreement and explore new avenues of cooperation, both countries stand to benefit from enhanced trade and technological advancements.