Sign in
UAE, South Korea to slash import customs: The UAE has formalized its trade and economic partnership agreement with South Korea during the presidential summit between President Sheikh Mohamed bin Zayed and his counterpart Yoon Suk Yeol, the president said in a statement. This pact marks the first trade agreement signed between an Arab state and South Korea, Korean news agency Yonhap reports.
The trade pact was signed alongside a total of 19 cooperation agreements and MoUs, the Korean news agency reports. The agreements, which span energy, nuclear power, defense, technology, climate change and cultural exchange, aim to “build upon the robust economic cooperation that links [both] nations and deliver tangible growth for [their] peoples,” the president said.
A step towards the AED 4 tn non-oil trade goal: The agreements are expected to drive the UAE’s non-oil foreign trade to exceed AED 4 tn by 2031, Wam reports
Background: The UAE and South Korea concluded negotiations for the trade agreement last year. Under the agreement, the UAE is set to lift tariffs on 91.2% of all traded goods from South Korea, while South Korea will lift tariffs on 92.8% over a 10-year period. The UAE will also gradually eliminate the 3% tariff on crude oil exports to the country, paving the way for more crude oil exports to the country, South Korean Trade Minister Cheong In-kyo said, according to Reuters.
The agreement should also see all tariffs on South Korea’s arms exports to UAE, as well as import duties on vehicles, eliminated, Reuters reported, citing a statement from South Korea. It will also see the UAE “open its market” to online gaming content and medical services, Yonhap said.
The two heads of state discussed enhancing cooperation in a myriad of fields of mutual interest, including economy and investment, conventional and clean energy, peaceful nuclear energy, and defense and defense technology, during a meeting in Seoul, attended by senior officials from both countries, Wam reports. The president emphasized the “deep strategic relations,” between the UAE and Korea, bolstered by their partnership on the Barakah Nuclear Energy Plant.
INVESTMENT-
The visit also saw the UAE reaffirm its commitment to invest USD 30 bn in South Korean businesses through Abu Dhabi’s sovereign wealth fund Mubadala, in the fields of nuclear power, defense, and renewable energy.
AND- Mubadala inked an MoU with the Korean Finance Ministry to “increase investment flows into future-focused sectors in South Korea’s economy,” including technology and small and medium-sized enterprises (SMEs), according to a joint statement (pdf). “The Republic of Korea remains one of the world’s most vibrant and dynamic economies, with a wide range of investment opportunities that offer compelling financial returns,” Mubadala CEO Khaldoon Khalifa Al Mubarak said.
The details: Mubadala had inked an agreement with the Korea Development Bank in January to establish the UAE-Korea Sovereign Investment Partnership, through which the UAE will plan its investments. The two sides are currently mulling some USD 6 bn in potential investments, the statement said.
ALSO- DMCC and AGCC will help South Korean startups expand in the UAE: Dubai Multi Commodities Centre (DMCC) signed an MoU with the Seoul Business Agency (SBA), which is the Seoul government’s investment promotion agency, to support with South Korean startups’ expansion in the UAE, according to a statement. The partnership will see DMCC launch dedicated accelerator programs in partnership with Dubai-based venture capital firm AGCC for “exceptional” South Korean startups.
ENERGY-
Adnoc to receive AED 9.4 bn LNG ships from South Korean shipbuilders: Among the slew of agreements were two letters of intent between Abu Dhabi National Oil Company (Adnoc) and Korean shipbuilders Samsung Heavy Industries and Hanwha Ocean to build 10 liquefied natural gas (LNG) carriers, in a transaction valued at AED 9.4 bn, Wam reports.
What we know: Adnoc kicked off a tender in January for Chinese and South Korean shipyards for six firm and four optional standardized LNG carrier newbuilds, LNG Prime reports.
The newbuilds are expected to service Adnoc’s second LNG terminal at Ruwais, LNG Prime said.
On the nuclear energy front: The Emirates Nuclear Energy Corporation (Enec) signed an agreement with state-run Korea Electric Power Corporation (Kepco) to cooperate on building nuclear reactors in an unnamed third state, Yonhap reports. They also agreed to cooperate on potential “follow-up unit projects,” according to a joint statement.
REMEMBER- South Korea’s Kepco was awarded the contract to construct the four nuclear reactors in Abu Dhabi’s Barakah nuclear power plant in 2009, which was completed in December. The government is reportedly mulling a second nuclear power plant as it looks to double nuclear reactors and meet energy demands, Reuters reported recently, citing people familiar with the matter. Tenders for four reactors at the potential plant — which would be the second nuclear facility in the country after the Barakah nuclear plant — could be issued “within the next few months,” with tenders awarded sometime this year, Reuters’ sources say.
The two countries also pledged to collaborate on carbon capture and storage projects, under an MoU geared towards establishing a supply chain for clean hydrogen and carbon emissions reduction.
REFRESHER- The South Korean government announced its intention to import green hydrogen from the UAE by 2027 last year.
The two countries agreed to establish a framework for climate change cooperation under an agreement signed by the Industry minister Sultan bin Ahmed Al Jaber and Korean Trade Minister Ahn Duk-geun.
DEFENSE-
Bolstering UAE’s defense: The two countries are currently reviewing their defense capabilities — including helicopters and fighter jets — to establish the UAE’s defense shield. “Each aspect is being discussed, and they will be finalized and announced one by one,” Yonhap reports, citing a presidential spokesperson. Other investment agreements and defense transactions were not disclosed at the UAE’s request, Yonhap reported, citing Seoul officials.
DIPLOMACY-
The foreign affairs ministry launched its inaugural AI-powered smart mission in Seoul to provide consular services for UAE citizens in South Korea, including document authentication and return document issuance, according to a statement from the foreign ministry. The smart mission utilizes facial recognition technology and a hologram service that provides responses to inquiries.
OTHER AREAS OF COOPERATION-
The two countries also agreed to cooperate on railway infrastructure and maritime transport; protecting intellectual property, developing joint projects in Africa and infrastructure projects in “third countries”, climate cooperation, advanced technology, space, agriculture, and healthcare.
