President Yoon to Make State Visits to Saudi Arabia and Qatar Starting the 21st
Economic Delegation of 139 Including Lee Jae-yong, Chung Eui-sun, Kim Dong-kwan, and Huh Tae-soo
Entered Middle East During First Oil Shock, Sparking Middle East Boom... Middle East 2.0 Kicks Off
President Yoon Suk-yeol will make a state visit to Saudi Arabia and Qatar for 4 nights and 6 days starting from the 21st. Based on 50 years of economic cooperation with these countries, he plans to actively promote 'Middle East 2.0,' expanding cooperation areas such as renewable energy, IT, electric vehicles, shipbuilding, smart farms, and cultural contents.
According to the Presidential Office on the 20th, President Yoon plans to advance the second Middle East boom by holding summits and various economic events in Saudi Arabia and Qatar, where Korea's first Middle East boom began in the 1970s. Choi Sang-mok, Chief Secretary for Economic Affairs at the Presidential Office, explained, "It is time to establish a new cooperative relationship moving beyond the carbon-based Middle East 1.0 to the decarbonized Middle East 2.0," adding, "Korea, which possesses advanced manufacturing technology and industrial development experience, is the optimal partner for Middle Eastern countries to achieve their future visions."
Saudi Arabia and Qatar, which President Yoon is visiting as a Korean president for the first time on a state visit, are considered major partners in the Middle East that have economically cooperated with Korea in construction and energy sectors for about half a century. Korea established diplomatic relations with Saudi Arabia in 1962, and Korean companies first entered Saudi Arabia 11 years later during the first oil shock in 1973. At that time, Samhwan Corporation won the contract for the Al-Ula-Khaibar highway construction in Saudi Arabia, marking Korea's first entry into Saudi Arabia and the Middle East. Since then, Hyundai Engineering & Construction has secured projects such as the Jubail Industrial Port construction in Saudi Arabia, cooperating in construction and infrastructure sectors.
In particular, since Crown Prince and Prime Minister Bin Salman’s visit to Korea in November last year, the relationship between Korea and Saudi Arabia has been elevated to a "strategic partnership," and with cooperation in the development of the "NEOM City" new town, they are experiencing a second Middle East boom. In the energy sector, amid the high oil price era caused by the Ukraine war, Korea increased its share of Saudi crude oil imports to 32.9% last year, up 3.6 percentage points from 2021, strengthening cooperation.
In the case of Qatar, Korea established diplomatic relations in 1974, and economic cooperation began when IC Corporation won the contract for the construction of a steel mill in Qatar in 1976. Since then, Hyundai Engineering & Construction, Daewoo Engineering & Construction, GS Engineering & Construction, Samsung C&T, and SK Engineering & Construction have built close cooperative relationships with Qatar, making it a major overseas construction market for Korean companies. Qatar is also Korea’s top supplier of liquefied natural gas (LNG) (second place in 2022).
In these countries, facing the post-oil era, there is interest in Korea’s renewable energy and nuclear power technologies, and they desire cooperation in IT, manufacturing, smart agriculture, cultural contents, and human exchanges. Therefore, President Yoon plans to meet directly with political and economic figures during his tour to open new avenues for cooperation.
Starting with the Korea-Saudi Investment Forum on the 22nd, President Yoon will attend the Korea-Saudi Future Technology Partnership Forum and the 50th Anniversary Ceremony of Korea-Saudi Construction Cooperation on the 23rd, the Future Investment Initiative Forum and the Qatar Doha International Horticultural Expo on the 24th, and the Korea-Qatar Business Forum on the 25th, encouraging the cooperative spirit of businesspeople.
The Presidential Office explained that dozens of memorandums of understanding (MOUs) are expected to be signed during President Yoon’s visit to Saudi Arabia. The Saudi itinerary will be accompanied by an economic delegation of 139 businesspeople, including Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Chairman Chung Eui-sun, Hanwha Vice Chairman Kim Dong-kwan, GS Chairman Huh Tae-soo, HD Hyundai President Jung Ki-sun, and Doosan Enerbility Chairman Park Ji-won. Kim Tae-hyo, First Deputy Director of the National Security Office, said, "Saudi Arabia and Qatar are our major trading partners and key players in regional politics and economy in the Middle East. Friendly cooperation with these countries is very important for our economy and security," adding, "This visit is expected to revitalize our economy and industry and deepen mutually beneficial cooperation that helps both Saudi national development and our economic growth." Chief Secretary Choi also introduced, "Through this state visit, the president plans to actively support Korean companies’ entry into mega projects in the Middle East, where global competition is fierce."
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