• Home
• /
• Business

S.Korea is emerging as a key trade partner of UAE

DUBAI — The UAE is one of the largest export market of Korea and the bilateral trade between the UAE and Korea reached more than $ 12 billion in 2005 compared to $9.8 billion in 2004.

"Last year, Korea exported goods worth $2.7 billion and imported energy products worth $10 billion from the UAE. More than 50 Korean companies are serving the UAE markets and fostering the economic relations between the two countries, said Sohn Kyung Shik, Chairman of the Korea Chamber of Commerce & Industry.

He was speaking at the Korea-UAE business forum held yesterday which highlighted the various investment and trade opportunities between the two growing economies.

Ki- Hwa Hong, President and Chief Executive Officer of Korean Trade-Investment Promotion Agency, (KOTRA) told Khaleej Times: “Korea is the 16th largest Investor in Foreign Direct Investment (FDI) and 11th largest trading nation in the world offering tremendous business opportunities for UAE investors. FDI flow is the key to revitalisation of mutual investment. Investment in Korea receives strong government support, advanced IT environment, excellent infrastructure and strategic regional location. Last year, UAE made five investments in the Korean IT/electronic industry worth $ 8 million and holds 25 per cent share in Busan Newport project."

He also added: "Like UAE, Korea is also safe for investment and the stock market in Korea is number three in Asia worth $528 billion and the bond market is number two in Asia valued at $714 billion."

Regarding future investment in the UAE, Hong said: “In the UAE, Korean companies secured Dh31.92 billion worth of contracts compared to Dh10 billion in 2004 and is actively involved in the Burj Tower project and The Jebel Ali Power and Desalination plant which will be completed in 2008. Korea is planning to invest in Dubai Internet city, Dubai Silicon Project and U-city project."

Meanwhile, the Dubai Chamber of Commerce & Industry (DCCI) signed a Memorandum of Understanding (MoU) with the Korea Trade Investment Promotion Agency (KOTRA) yesterday which stipulates that the two parties shall promote and assist in the exchange of contacts, the fostering of mutual cooperation in trade-related matters, and encouraging joint ventures, the transfer of know-how and other forms of sound business relations between their members.

The parties shall exchange statistical information, economic data, and other information that may be required by their respective business communities.

One senior official from Kotra told Khaleej Times"

"Apart from this, two more strategic agreements were signed to ensure more development and progression in our relations at all levels with the UAE and this includes U-City project in Abu Dhabi with Korean Electronic Institute Technology and Ubiquitous project with Korean Telecom and Dubai Holding."

The Korea Plant and Construction Support centre was officially inaugurated yesterday at Shaikh Zayed Road.

This office will represent the interests of Korean companies in all matters relating to overseas construction and development activities as plant construction is an increasingly important source of overseas business for Korean contractors.