UAE, South Korea to slash import customs: The UAE has formalized its Comprehensive Economic Partnership Agreement (CEPA) and signed a raft of agreements 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.

Background: The UAE and South Korea concluded negotiations for the trade agreement lastyear. 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.

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

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.

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.

SHIPPING + MARITIME-

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 (c. USD 2.5 bn), Wam reports.

What we know: Adnoc kicked off a tender in January for Chinese and South Korean shipyards for six frim plus four optional standardized LNG carrier newbuilds, LNG Prime reports. Adnoc has reportedly chosen South Korean shipbuilders Samsung Heavy Industries and Hanwha Ocean for the contracts, assigning three vessels to each, sources told LNG Prime.

The newbuilds are expected to service Adnoc’s second LNG terminal at Ruwais, LNG Prime said. Ruwais is angling to become the region’s first LNG export facility that is powered by renewable energy. Ruwais LNG consists of two 4.8 mmtpa LNG liquefaction trains with a combined 9.6 mmtpa capacity, which will more than double Adnoc’s LNG output to 15 mmtpa once Ruwais LNG comes online.

Adnoc inked its third long-term LNG supply agreement earlier this month, with German energy giant Energie Baden-Württemberg, to supply it with 0.6 mn tons of LNG from Ruwais once the facility comes online in 2028. This came on the heels of two other agreements with China's ENN Natural Gas and SEFE Marketing & Trading Singapore for the delivery of 1 mn tons of LNG annually from the new plant.

RAIL-

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.

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