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UAE, South Korea commit to boost ties in new sectors

dubai - Clean energy is a key area where both governments plan to boost collaboration

Proactive strategies adopted by the UAE and South Korea to prepare for the Fourth Industrial Revolution as well as their investments in space development and ICT will help further advance both economies in the future, Moon Jae-in, President of the Republic of Korea, said on Tuesday at the UAE-Korea Business Forum.

The Korean leader, who is on a 2-day visit to the UAE, said his country is committed to expanding cooperation with the UAE in new sectors as both countries push ahead with strategic plans to further develop their economies.

Addressing government and business leaders at the business forum, Moon emphasised the historic and cultural ties that the UAE and South Korea share, and highlighted the important role that South Korean companies have played in the UAE's development over the years. He identified clean energy as a key area where both governments can boost collaboration and explore new opportunities.

The UAE and South Korea have been strengthening relations in clean energy over the past few years that had culminated in the completion of the first UAE nuclear reactor - the Barakah power plant - on Monday. The plant is the first in the Arab world, and is part of the UAE's effort to curb its reliance on fossil fuels and to adopt cleaner sources of energy.

Both sides also have bolstered ties in the oil sector with Adnoc signing two contracts worth a total of $3.5 billion with Korean industrial giant Samsung Engineering for crude oil processing flexibility and power and water recovery on Monday.

The Korean president said both the UAE and South Korean governments had adopted strategies to prepare for the Fourth Industrial Revolution, with the UAE going one step further by appointing a minister of artificial intelligence.  

The forum, organised by the Dubai Chamber of Commerce and Industry in cooperation with the Korean International Trade Association, put the spotlight on UAE-South Korea economic ties, and explored the potential for the 2 countries to enhance their cooperation beyond energy and construction to other sectors such as technology, security, infrastructure, healthcare, innovation and smart solutions.

Majid Saif Al Ghurair, chairman of Dubai Chamber, said the UAE and Korea share many synergies as economies geared toward trade and foreign direct investment. He noted that both countries have placed a key focus on expanding infrastructure, fostering innovation and improving ease of doing business, adding that these similarities and strengths have enabled their unique relationship to evolve and thrive over the years.

Dubai's non-oil trade with South Korea has increased steadily in recent years, reaching $7.5 billion in 2017, accounting for a major share of the UAE's non-oil trade with the Asian country, Al Ghurair said.

The number of South Korean companies registered with the Dubai Chamber exceeds 170 and bilateral relations have been boosted by high-level visits from both sides and the signing of strategic cooperation agreements, the chamber chief said.

"Dubai is well-positioned to serve as a strategic gateway for Korean companies that are keen to expand their global footprint and access markets across the Middle East, Africa and Europe," said Ghurair.

Hamad Buamim, president and CEO of Dubai Chamber, said there is huge potential to explore bilateral business opportunities in the areas of ICT, cloud computing, Internet of Things, healthcare and life sciences, and establish new joint ventures focusing on ship production, multi-modal logistics, construction and renewable energy.

Buamim emphasised Dubai's position a re-export hub for the GCC and noted that South Korea is a major source market for electric and electronic products and machinery that are re-exported through the emirate to key markets in the region such as Saudi Arabia.

Kim Young-ju, chairman, Korean International Trade Association, said the Asian country's expertise in manufacturing and ICT sectors can complement its relationship with the UAE. He noted that the UAE boasts strong financial capabilities and identified this sector as a key area where the 2 countries can build on existing synergies.

Joo Dong-joo, research fellow at the Korea Institute for Industrial Economics and Trade, highlighted the prospects for increasing industrial cooperation between the UAE and South Korea. He explained that the 2 countries share many similarities as economies that have witnessed remarkable economic growth and development in recent decades, which has been supported by the forward-looking and progressive vision of their respective governments. He identified artificial intelligence, Internet of Things, big data and drones as key areas where they could cooperate in the future.

High-level attendees representing the UAE included Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, CEO and chairman of Emirates airline and Group; Sultan bin Saeed Al Mansouri, UAE Minister of Economy; Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Industry; Abdulla Saif Al Nuaimi, UAE Ambassador to the Republic of Korea; Raja Al Gurg, president of the Dubai Business Women Council, and Aisha bin Bishr, director-general of Smart Dubai Office.

- issacjohn@khaleejtimes.com