KOR-UAE $6.1 Billion Energy and Defense Contracts... "Strengthening Comprehensive Cooperation"

[Asia Economy Sejong=Reporter Dongwoo Lee] Major domestic companies signed contracts worth $6.1 billion (7.5 trillion KRW) with the United Arab Emirates (UAE) in the fields of energy, defense, and new industries.

The Ministry of Trade, Industry and Energy announced on the 16th (local time) that the governments and companies of both countries signed a total of 24 memorandums of understanding (MOUs) and contracts at the 'Korea-UAE Business Forum' held at the Rixos Marina Hotel in Abu Dhabi. These agreements were made through President Yoon Suk-yeol's state visit to the UAE, and the contracts are expected to accelerate the entry of Korean companies into the Middle Eastern market.

[Image source=Yonhap News]

In the energy sector, a total of six MOUs were signed. Samsung C&T agreed to promote hydrogen and renewable energy projects with renewable energy company Masdar, and transmission and gas power generation projects with Abu Dhabi National Energy Company (TAQA). Korea National Oil Corporation signed a strategic partnership with Abu Dhabi National Oil Company (ADNOC) for low-carbon hydrogen and ammonia joint production. Changwon City, Korea Automotive Technology Institute, and Kwangshin Machinery Industry signed an MOU with Abu Dhabi Department of Municipalities and Transport (DMT) to promote hydrogen mobility.

In the bio and new industry sectors, a total of eight MOUs were signed. Pharmaceutical company Medytox will establish a bio finished product manufacturing plant in the UAE, and cloud service company Megazone Cloud will promote the entry of integrated digital services into the Middle East. Additionally, three MOUs related to digital transformation, two related to metaverse technology, and one related to data collection solutions were signed.

Three companies in the smart farm sector signed MOUs, and the Korea Trade-Investment Promotion Agency (KOTRA) and Korea Trade Insurance Corporation agreed to cooperate with the UAE to promote exports and attract investment in the Middle East region.

Following the business forum, a 'Korea-UAE Business Consultation Meeting' was held, involving 36 Korean companies from six sectors including nuclear power, energy, and premium consumer goods, and 105 UAE buyers. The consultation meeting conducted 257 consultations covering export discussions, technology cooperation, joint market entry, and other forms of collaboration, resulting in a contract promotion amount of $11 million.

Meanwhile, the forum was attended by Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy, ministers from the UAE Ministry of Economy and Ministry of Energy and Infrastructure, and business leaders including Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Group Chairman Chung Eui-sun, SK Chairman Chey Tae-won (Chairman of the Korea Chamber of Commerce and Industry), and Hyosung Chairman Cho Hyun-joon.

The Ministry of Trade, Industry and Energy stated, "Together with KOTRA, we will support follow-up consultations for participating companies to ensure that this export consultation leads to substantial export results in the future."