UAE Decides to Invest 40 Trillion Won in Korea... 13 MOUs Signed Including Nuclear Power and Defense Industries

Mohamed, UAE President, "Investment Decision Based on Trust in South Korea Keeping Promises"
Elevated to 'Special Strategic Partner'... Cooperation on Entry into 3 Nuclear Countries and Joint Development of Transport Aircraft

[Abu Dhabi=Asia Economy Reporter Baek Kyunghwan] The United Arab Emirates (UAE) has decided to invest $30 billion (approximately 40 trillion KRW) in South Korea. Thirteen memorandums of understanding (MOUs) were also signed, focusing on four core sectors: nuclear power, energy, investment, and defense industry. The two leaders agreed to elevate bilateral relations to the highest level of cooperation as a "Special Strategic Partnership."

On the 15th (local time), the Presidential Office disclosed the results of the summit between President Yoon Suk-yeol and UAE President Mohamed bin Zayed Al Nahyan, reporting that President Mohamed stated he decided on the $30 billion investment "based on trust in South Korea, which keeps its promises under any circumstances."

President Yoon Suk-yeol, on a state visit to the United Arab Emirates (UAE), is shaking hands and conversing with President Mohamed bin Zayed Al Nahyan during a state luncheon held at the Abu Dhabi Presidential Palace on the 15th (local time).
[Photo by the Office of the President]

On this day, the two leaders signed agreements including ▲ a net-zero acceleration program centered on joint entry into third countries for nuclear power plants ▲ a voluntary carbon market partnership involving investment in a carbon trading platform and the establishment and operation of a carbon offset certification center ▲ international joint development of multipurpose transport aircraft ▲ hydrogen production, storage, transportation, and utilization within cities ▲ cooperation in the water resources sector ▲ administrative arrangements under the Korea-UAE nuclear agreement ▲ and financial cooperation between the Export-Import Bank of Korea and Abu Dhabi National Energy Company (TAQA).

In the much-anticipated nuclear sector, the two countries agreed to cooperate on joint entry into third countries for nuclear power plants, nuclear fuel, and the development of small modular reactor (SMR) technology. In the energy sector, ADNOC crude oil will be introduced and sold at the Korea National Oil Corporation's Yeosu base, allowing South Korea to exercise a priority purchase right on the contracted crude oil volume in case of a supply crisis.

In the defense sector, they will promote information exchange such as defense industry technology transfer and engage in joint development of transport aircraft as a medium- to long-term cooperation project. In the investment sector, Mubadala, the second-largest sovereign wealth fund in Abu Dhabi, and the Korea Development Bank will jointly invest to support the growth of promising Korean companies. They also agreed to expand cooperation projects and mutual investments to enhance SME and startup collaboration between the two countries. A Presidential Office official added, "We expect this to be an important starting point to develop the Korea-UAE 'Special Strategic Partnership' to the highest level."

At the meeting, President Yoon said, "I am pleased to visit the UAE as my first overseas trip in 2023 and to hold talks with President Mohamed. The first state visit since the establishment of diplomatic relations in 1980 demonstrates the strong will of both countries to develop bilateral relations." He continued, "Through this summit, we expect this to be an important starting point to develop Korea-UAE relations to the highest level by further strengthening strategic cooperation not only in the four core areas of nuclear cooperation, energy, investment, and defense but also in future cooperation fields such as new industries, health and medical care, culture, and human exchanges."

President Mohamed also strongly agreed with President Yoon's assessment, saying, "I am very pleased that you visited the UAE as your first state visit since taking office, and I strongly hope to further develop the strategic partnership with Korea." He emphasized, "The UAE is ready to dramatically expand cooperation with Korea across all fields including peaceful use of nuclear energy, renewable energy, hydrogen, defense technology, climate change, space, digital transformation, advanced infrastructure, smart agriculture, food security, and water resources."

On this day, President Mohamed warmly welcomed President Yoon, who was the first Korean president to make a state visit to the UAE. After deciding on the investment in Korea, President Mohamed conveyed to President Yoon that the decision was made "based on trust in South Korea, which keeps its promises under any circumstances."