Attracting 40 Trillion Oil Money, 50 MOUs Signed... Expanding 'Advanced Industries'

Presidential Office Expects Over 50 MOUs Including Heads of Both Countries, Government, and Companies
Government Begins Review of UAE Demand Sectors... Expansion in Digital and Smart Farm Expected

[Abu Dhabi=Asia Economy Reporter Baek Kyunghwan] Following President Yoon Suk-yeol's state visit to the United Arab Emirates (UAE), where he secured $30 billion (approximately 40 trillion KRW) in 'oil money' investments, the government and companies are expected to achieve investment results from over 50 cooperative projects.

On the 16th (local time), a senior official from the presidential office stated, "If additional corporate cooperation is realized through the Korea-UAE Business Forum during the tour, the number of memorandums of understanding (MOUs) will easily exceed 50," adding, "Considering the additional cooperation based on this, it is a result as meaningful as attracting 40 trillion KRW in investment."

Earlier, on the 15th in Abu Dhabi, President Yoon secured investments worth $30 billion (approximately 40 trillion KRW). This amount is comparable to South Korea's total overseas investment attraction last year ($30.5 billion), and 13 MOUs were signed under the watchful eyes of the two heads of state. The presidential office analyzes that including all MOUs to be secured by the government and companies during the remaining UAE visit, the total will exceed 50. The Korean government also plans to identify additional cooperative industrial sectors between the two countries, focusing on advanced technologies.

According to the presidential office, the government has begun establishing a 'Roadmap for Korea-UAE Advanced Industry Cooperation.' This is interpreted as a measure to maximize the outcomes of President Yoon's UAE visit. The roadmap focuses on the UAE federal government's '10-year Industrial Development Strategy,' which includes plans to foster advanced industries such as space, medical and pharmaceutical, and clean and renewable energy.

First, the government plans to assess the current status of advanced technology cooperation between the two countries. During this process, it will analyze areas of increased demand from the UAE side, designate new cooperation agendas, and discuss handling them as policy tasks. A government official elaborated, "Fields such as digital cooperation and smart farms could also be included."

The government expects that the outcomes of President Yoon's recent talks will serve as a foundation to broaden industrial cooperation between the two countries. The 13 MOUs signed under the presence of President Yoon and UAE President Mohammed bin Zayed Nahyan the previous day cover not only traditional cooperation areas such as strategic defense business cooperation and joint development of multipurpose transport aircraft but also future-oriented cooperation fields like the net-zero (carbon neutrality) acceleration program MOU and the revision of the Korea-UAE space cooperation MOU.

The agreements also include strategic investment partnership MOUs between KDB Industrial Bank and Mubadala, the UAE's second-largest sovereign wealth fund, as well as financial cooperation MOUs between the Export-Import Bank of Korea and Abu Dhabi's state-owned energy company, outlining ways to attract oil money. Kim Eun-hye, the chief spokesperson, described the talks as "a stepping stone for prosperity and leap forward between Korea and the UAE."

President Yoon will intensify sales diplomacy during the remaining schedule of his state visit to the UAE. He is scheduled to attend the Korea-UAE Business Forum to encourage businesspeople from both countries and present a vision for economic cooperation. Additional corporate cooperation is expected to be realized at this event as well. This is why the number of MOUs expected to be signed during this UAE visit exceeds 50.

The $30 billion investment decided by the UAE in Korea is also linked to the MOUs signed by the two heads of state. It serves as so-called 'seed money' for a long-term cooperative relationship between the two countries. A senior presidential office official explained, "Considering similar cases, this investment agreement amount is overwhelmingly large," adding, "It far exceeds the ?10 billion (approximately 15 trillion KRW) agreed with the UK, $5 billion (approximately 6.2 trillion KRW) with China, and €1.5 billion (approximately 2 trillion KRW) with France." Moreover, the investment amount promised by the UAE exceeded Korea's initial expectations. Another senior presidential office official recalled, "I asked Khaldoon Al Mubarak, the Abu Dhabi Administrative Chief, 'We discussed $5 billion to $10 billion among working-level officials, but isn't that too large a figure?'" In this regard, the two countries have agreed to establish an 'Investment Cooperation Platform' to implement the investment agreement. This platform will include public investment institutions such as the Industrial Bank, private companies, and investment institutions.

President Yoon stated, "I am confident that the talks will be an important starting point to elevate the Korea-UAE 'Special Strategic Partnership' to a higher level," and expressed full agreement on the need to strengthen strategic cooperation in four core areas: nuclear power, energy, corporate investment, and defense industry, to newly develop bilateral relations. He also emphasized, "I believe the areas of cooperation between the two countries are limitless," adding, "The UAE is actively promoting cooperation in advanced industries such as digital transformation, mobility, aerospace, materials and components, and bio, and Korean companies with global competitiveness will be good partners for the UAE."

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