South Korea and UAE Strengthen Ties with Trade Pact Signing
SEOUL: In a momentous summit between South Korea and the UAE, a trade pact was signed on Wednesday to significantly reduce import duties, highlighting the commitment to closer business and investment ties.
The UAE’s President Sheikh Mohammed bin Zayed Al-Nahyan was warmly welcomed by host South Korea with a traditional honour guard and a breathtaking flypast of air force jets.
Described as a “special bond,” the meeting between the two leaders is seen as an opportunity to enhance the special strategic partnership between the two countries, as stated by the office of President Yoon Suk Yeol.
Focused on energy and defense, the summit, following Yoon’s state visit to Abu Dhabi last year, aimed to explore the investment potential of the energy-rich Gulf state for South Korea.
Yoon’s office confirmed that the UAE reiterated its commitment to investing $30 billion in South Korean businesses, spanning various sectors including nuclear power, defense, hydrogen, and solar energy.
Additionally, both sides inked an agreement to increase investment flows into forward-looking sectors within South Korea’s economy.
Notably, the Abu Dhabi National Oil Co. signed a letter of intent for a South Korean company to construct at least six LNG carriers valued at approximately $1.5 billion.
The industry ministers also formally sealed a Comprehensive Economic Partnership Agreement that will eliminate all tariffs on South Korean arms exports once ratified, as confirmed by South Korea.
Over the next decade, the UAE will gradually phase out import duties on automobiles, while South Korea will reciprocate by lifting tariffs on crude oil imports.
Ultimately, the trade deal aims to eliminate tariffs on over 90 percent of the imports from both nations.
During his visit, Sheikh Mohammed met with key leaders of South Korea’s top conglomerates, including Jay Y. Lee of Samsung Electronics, SK Group Chairman Chey Tae-won, and Kim Dong-kwan of Hanwha Group, a prominent defense contractor.
Although no new arms deal was announced, Yoon’s office expressed the mutual goal of enhancing long-term cooperation between their defense industries.
South Korea’s ambition to become the world’s fourth-largest defense exporter by 2027 has led to a series of global defense equipment contracts, with recent agreements involving countries like Poland, seeking to bolster their defense amid the conflict between Ukraine and Russia.