UAE Promises $30 Billion Investment in Korean Companies... Establishing Cooperation Platform

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kim Hyewon] The government of the United Arab Emirates (UAE) has decided to invest $30 billion (approximately 37.3 trillion KRW) in advanced sectors such as energy, nuclear power, hydrogen, solar power, and defense industries of Korean companies, centered around its sovereign wealth fund.

On the 15th, the Ministry of Economy and Finance announced that it had agreed with the UAE government to strengthen cooperation in investment and finance during President Yoon Seok-yeol's visit.

As part of concretizing this investment cooperation, the Korea Development Bank and Mubadala, one of the UAE's sovereign wealth funds, signed a Memorandum of Understanding (MOU) on a Strategic Investment Partnership (SIP). The government explained that this $30 billion investment in Korea significantly surpasses the scale of investment cooperation the UAE has made with other countries so far.

The Ministry of Economy and Finance stated, "Korea Development Bank and Mubadala are expected to expand various forms of investment cooperation, including seeking joint investment opportunities in advanced fields such as life sciences, sharing investment information, and jointly entering third countries."

Mubadala is reportedly exploring investments in the life sciences sector, including bio and pharmaceuticals, and is also interested in advanced manufacturing such as energy transition, semiconductors, and batteries.

In the financial sector, the Export-Import Bank of Korea signed an MOU with TAQA, the Abu Dhabi state-owned energy company, which is one of the key clients in the Middle East.

Going forward, the Export-Import Bank plans to pursue the conclusion of a Framework Agreement (F/A) with TAQA to provide prompt financial support when Korean companies secure projects.

The government expects that support for domestic companies will be strengthened in various infrastructure projects ordered by TAQA, including power generation, seawater desalination, and transmission and distribution sectors.

To systematically promote and monitor the achievements of this summit, including investment and financial cooperation, the government plans to consult with the UAE government about holding the Korea-UAE Economic Joint Committee, the highest regular economic cooperation channel between the two countries, in Seoul in the first half of this year.

Additionally, the government intends to focus on establishing a Korea-UAE investment cooperation platform to support the UAE's $30 billion investment and to swiftly and smoothly implement the investment agreements made between the two heads of state.