UAE to invest $30bn in South Korea over the next few years

The UAE has reiterated its commitment to invest $30bn in South Korea over the next few years, covering several important economic sectors as the two countries seek to expand economic cooperation, according to WAM.

The Minister of State for Foreign Trade Dr Thani Al Zeyoudi explored joint investment opportunities with his South Korean counterpart in several priority fields including trade, industry, real estate, insurance, health, technology, digital transformation and food security.

Al Zeyoudi underlined the strength and vitality of the UAE’s strategic partnership with South Korea, which is the result of the two countries’ commitment to continuously develop and strengthen it.

“The trade and economic relations between the UAE and Korea are witnessing continuous growth. Non-oil trade between the two countries totalled nearly $5.3bn (Dhs19.5bn) in 2022, up 14 per cent from 2021,” Al Zeyoudi said adding that the country’s exports to South Korea surged by 17.5 per cent last year to exceed Dhs2.8bn.

The UAE’s foreign trade minister and his South Korean counterpart agreed to enhance joint efforts to implement the MoU that was recently signed between the two countries.

The MoU aims to boost trade exchanges between the two countries by facilitating import and export procedures for exporters and importers in both markets to create more investment and trade opportunities.

#UAE to invest USD30 billion in #Korea over the next few years#WamNews https://t.co/YzRx69V75N pic.twitter.com/63PfiOumxm

— WAM English (@WAMNEWS_ENG) March 15, 2023

The efforts are expected to encourage SMEs and startups in both countries to expand their businesses into each other’s markets, giving rise to new future-ready partnerships.

There has been a frequent exchange of visits by high-level officials and trade delegations between the UAE and South Korea. South Korean President Yoon Suk Yeol visited the UAE in January during which he met with President Sheikh Mohamed bin Zayed Al Nahyan to explore the strengthening of bilateral relations between the two countries.

Read: UAE, Korea to advance strategic partnership, sign MoUs related to space, clean energy, defence sectors

The two countries also signed 13 MoUs during President Yoon’s visit including an agreement between the state-run Korea Development Bank and Abu Dhabi’s Mubadala to cooperate for investment in South Korean companies.

UAE’s free trade agreements

Meanwhile, the UAE signed free trade deals with India, Israel, Turkey and Indonesia last year, as the Gulf state remodels itself as a global hub for business and finance beyond the Middle East.

Earlier in March, the UAE signed off on a free trade pact with Turkey. The trade deal is expected to more than double bilateral trade volumes between the two countries to anywhere between $40bn and $45bn within the next five years.

The UAE pledged billions of dollars worth of investments in Turkey through government-affiliated entities on top of a $4.9bn currency swap agreement between the two countries.

India also signed a wide-ranging economic pact with the UAE, which is aimed at boosting trade and investment in February 2022. India’s exports to the UAE include petroleum products, precious metals, gems and jewellery, and food items.

Read: India-UAE Partnership Summit held, underscores economic partnerships for joint growth

The country also signed an economic pact with Indonesia in July 2022 as the two countries seek to boost bilateral trade to more than $10bn by 2030. The Southeast Asia country sees its exports climbing 54 per cent over the next 10 years, as the deal erases as much as 94 per cent of existing tariffs.

The UAE has finalised a similar trade agreement with Israel and is to finalise a deal with Ukraine and Colombia in the future. The free trade agreement with Israel was signed in May 2022 and it removes or reduces tariffs on 96 per cent of goods traded between the nations.