{"id":92536,"date":"2024-05-30T00:00:00","date_gmt":"2024-05-30T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/uae-inks-economic-and-trade-agreement-with-south-korea\/"},"modified":"2024-05-30T00:00:00","modified_gmt":"2024-05-30T00:00:00","slug":"uae-inks-economic-and-trade-agreement-with-south-korea","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/05\/30\/uae-inks-economic-and-trade-agreement-with-south-korea\/","title":{"rendered":"UAE inks economic and trade agreement with South Korea"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>UAE, South Korea to slash import customs:<\/strong> 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 <a target=\"_blank\" href=\"https:\/\/x.com\/MohamedBinZayed\/status\/1795696733692826042\" style=\"\" rel=\"noopener\">statement<\/a>. This pact marks the first trade agreement signed between an Arab state and South Korea, Korean news agency <a target=\"_blank\" href=\"https:\/\/m-en.yna.co.kr\/view\/AEN20240529001653315?section=national\/diplomacy\" style=\"\" rel=\"noopener\">Yonhap<\/a> reports.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The trade pact was signed alongside a total of 19 cooperation agreements and MoUs,<\/strong> the Korean news agency reports. The agreements, which span energy, nuclear power, defense, technology, climate change and cultural exchange, aim to \u201cbuild upon the robust economic cooperation that links [both] nations and deliver tangible growth for [their] peoples,\u201d the president said.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>A step towards the AED 4 tn non-oil trade goal:<\/strong> The agreements are expected to drive the UAE\u2019s non-oil foreign trade to exceed AED 4 tn by 2031, <a target=\"_blank\" href=\"https:\/\/wam.ae\/en\/article\/b3earsc-uae-and-korean-presidents-witness-signing\" style=\"\" rel=\"noopener\">Wam<\/a> reports<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Background: <\/strong>The UAE and South Korea concluded negotiations for the trade agreement <a target=\"_blank\" href=\"https:\/\/english.motie.go.kr\/eng\/article\/EATCLdfa319ada\/1465\/view\" style=\"\" rel=\"noopener\">last<\/a><a target=\"_blank\" href=\"https:\/\/english.motie.go.kr\/eng\/article\/EATCLdfa319ada\/1465\/view\" style=\"\" rel=\"noopener\">year<\/a>. Under the agreement, the UAE is set to <a target=\"_blank\" href=\"https:\/\/en.yna.co.kr\/view\/AEN20231013008000320\" style=\"\" rel=\"noopener\">lift tariffs<\/a> 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 <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/south-korea-uae-summit-focus-defence-energy-investment-2024-05-29\/#:~:text=The%20industry%20ministers%20formally%20signed%20a%20Comprehensive%20Economic%20Partnership%20Agreement%20(CEPA)%20agreed%20in%20October%20that%20will%20remove%20all%20tariffs%20on%20South%20Korean%20arms%20exports%20when%20it%20is%20ratified%2C%20South%20Korea%20said.\" style=\"\" rel=\"noopener\">Reuters<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The agreement should also see all tariffs on South Korea\u2019s arms exports to UAE<\/strong>, as well as import duties on vehicles, eliminated, Reuters reported, citing a statement from South Korea. It will also see the UAE \u201copen its market\u201d to online gaming content and medical services, Yonhap said. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The<\/strong><strong> two heads<\/strong><strong> of state discussed enhancing cooperation in a myriad of fields of mutual <\/strong><strong>interest<\/strong>, 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, <a target=\"_blank\" href=\"https:\/\/wam.ae\/en\/article\/b3earsa-presidents-uae-and-republic-korea-discuss\" style=\"\" rel=\"noopener\">Wam<\/a> reports. The president emphasized the \u201cdeep strategic relations,\u201d between the UAE and Korea, bolstered by their partnership on the Barakah Nuclear Energy Plant. <\/p>\n<p class=\"tag-border-left\">INVESTMENT-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The visit also saw the UAE reaffirm its commitment to <\/strong><strong><a target=\"_blank\" href=\"https:\/\/wam.ae\/en\/article\/13setxr-south-korea-uae-ties-deepen-with-mc13-cepa#:~:text=The%20minister%20pointed%20out%20that%20Korea%20and%20the%20UAE%20clinched%20a%20total%20of%2032%20commercial%20Memorandums%20of%20Understanding%20(MoUs)%20amounting%20to%20US%246.1%20billion%2C%20along%20with%20Mubadala%27s%20decision%20to%20invest%20US%2430%20billion%20during%20the%20Korean%20President%27s%20State%20Visit%20to%20the%20UAE%20in%20January%202023.\" style=\"\" rel=\"noopener\">invest USD 30 bn<\/a><\/strong><strong> in South Korean <\/strong><strong>businesses<\/strong> through Abu Dhabi\u2019s sovereign wealth fund Mubadala, in the fields of nuclear power, defense, and renewable energy. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>AND- Mubadala inked an MoU with the Korean Finance Ministry to <\/strong><strong>\u201cincrease investment <\/strong><strong>flows into future-focused sectors <\/strong>in South Korea\u2019s economy,\u201d including technology and small and medium-sized enterprises (SMEs), according to a <a target=\"_blank\" href=\"https:\/\/ent.news\/2024\/5\/2421.pdf\" style=\"\" rel=\"noopener\">joint statement (pdf)<\/a>. \u201cThe 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. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The details: <\/strong>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.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>ALSO- DMCC and AGCC will help South Korean startups expand in the UAE: <\/strong>Dubai Multi Commodities Centre (DMCC) signed an MoU with the Seoul Business Agency (SBA), which is the Seoul government\u2019s investment promotion agency, to support with South Korean startups\u2019 expansion in the UAE, according to a <a target=\"_blank\" href=\"https:\/\/dmcc.ae\/latest-news\/dmcc-signs-strategic-partnership-with-seoul-business-agency-to-boost-innovation-between-the-uae-and-south-korea\" style=\"\" rel=\"noopener\">statement<\/a>. The partnership will see DMCC launch dedicated accelerator programs in partnership with Dubai-based venture capital firm <a target=\"_blank\" href=\"https:\/\/agcc.vc\/?utm_source=linkedin&amp;utm_medium=profile\" style=\"\" rel=\"noopener\">AGCC<\/a> for \u201cexceptional\u201d South Korean startups. <\/p>\n<p class=\"tag-border-left\">ENERGY-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Adnoc to receive AED 9.4 bn LNG ships from South Korean shipbuilders: <\/strong>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, <a target=\"_blank\" href=\"https:\/\/wam.ae\/en\/article\/b3earsc-uae-and-korean-presidents-witness-signing\" style=\"\" rel=\"noopener\">Wam<\/a> reports. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What we know:<\/strong> Adnoc kicked off a tender in January for Chinese and South Korean shipyards for six firm and four optional standardized LNG carrier newbuilds, <a target=\"_blank\" href=\"https:\/\/lngprime.com\/asia\/adnoc-picks-south-korean-yards-to-build-six-lng-carriers\/113437\/\" style=\"\" rel=\"noopener\">LNG Prime<\/a> reports. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The newbuilds are expected to service Adnoc\u2019s second LNG terminal at Ruwais, <\/strong>LNG Prime said. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>On the nuclear energy front: <\/strong>The Emirates Nuclear Energy Corporation (Enec) signed an agreement with state-run <a target=\"_blank\" href=\"https:\/\/home.kepco.co.kr\/kepco\/EN\/main.do\" style=\"\" rel=\"noopener\">Korea Electric Power Corporation<\/a> (Kepco) to cooperate on building nuclear reactors in an unnamed third state, <a target=\"_blank\" href=\"https:\/\/en.yna.co.kr\/view\/AEN20240529006052320#:~:text=The%20state%2Drun%20Korea%20Electric%20Power%20Corp.%20and%20the%20Emirates%20Nuclear%20Energy%20Corporation%20also%20inked%20an%20agreement%20to%20seek%20opportunities%20to%20build%20nuclear%20reactors%20in%20a%20third%20country.\" style=\"\" rel=\"noopener\">Yonhap<\/a> reports. They also agreed to cooperate on potential \u201cfollow-up unit projects,\u201d according to a <a target=\"_blank\" href=\"https:\/\/wam.ae\/en\/article\/13xw0nj-united-arab-emirates-republic-korea-issue-joint\" style=\"\" rel=\"noopener\">joint statement<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>REMEMBER- <\/strong>South Korea\u2019s Kepco was awarded the contract to construct the four nuclear reactors in Abu Dhabi\u2019s Barakah nuclear power plant in <a target=\"_blank\" href=\"https:\/\/home.kepco.co.kr\/kepco\/EN\/B\/htmlView\/ENBJHP005.do?menuCd=EN02080104\" style=\"\" rel=\"noopener\">2009<\/a>, which was completed in <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/bb5591f8-ab8f-42c4-92a2-3297d709285e\/uae%25e2%2580%2599s-first-nuclear-power-plant-is-now-complete\" style=\"\" rel=\"noopener\">December<\/a>. The government is reportedly <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/d0e7308f-97c3-4c66-b1e4-2433c4d69091\/another%253cmark%253e-nuclear%253c%2Fmark%253e-plant%3F\" style=\"\" rel=\"noopener\">mulling<\/a> 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 \u2014 which would be the second nuclear facility in the country after the Barakah nuclear plant \u2014 could be issued \u201cwithin the next few months,\u201d with tenders awarded sometime this year, Reuters\u2019 sources say. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The two countries also pledged to collaborate on carbon capture and storage projects<\/strong>, under an MoU geared towards establishing a supply chain for clean hydrogen and carbon emissions reduction. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>REFRESHE<\/strong><strong>R-<\/strong> The South Korean government announced its intention to import green hydrogen from the UAE by 2027 <a target=\"_blank\" href=\"http:\/\/climate.enterprise.press\/stories\/2023\/01\/11\/south-korea-will-get-a-whole-lot-of-hydrogen-from-mena-in-coming-years-93252\/\" style=\"\" rel=\"noopener\">last year<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The two <\/strong><strong>countries agreed<\/strong><strong> to establish a framework for climate change cooperation <\/strong>under an agreement signed by the Industry minister Sultan bin Ahmed Al Jaber and Korean Trade Minister Ahn Duk-geun.<\/p>\n<p class=\"tag-border-left\">DEFENSE- <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Bolstering UAE\u2019s defense: <\/strong>The two countries are currently reviewing their defense capabilities \u2014 including helicopters and fighter jets \u2014 to establish the UAE\u2019s defense shield. \u201cEach aspect is being discussed, and they will be finalized and announced one by one,\u201d Yonhap reports, citing a presidential spokesperson. Other investment agreements and defense transactions were not disclosed at the UAE\u2019s request, Yonhap reported, citing Seoul officials. <\/p>\n<p class=\"tag-border-left\">DIPLOMACY-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The foreign affairs ministry launched its inaugural AI-powered smart mission in Seoul <\/strong>to provide consular services for UAE citizens in South Korea, including document authentication and return document issuance, according to a <a target=\"_blank\" href=\"https:\/\/www.mofa.gov.ae\/ar-ae\/mediahub\/news\/2024\/5\/29\/29-5-2024-uae-korea\" style=\"\" rel=\"noopener\">statement<\/a> from the foreign ministry. The smart mission utilizes facial recognition technology and a hologram service that provides responses to inquiries. <\/p>\n<p class=\"tag-border-left\">OTHER AREAS OF COOPERATION- <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The two countries also agreed to cooperate on <\/strong>railway infrastructure and maritime transport; protecting intellectual property, developing joint projects in Africa and infrastructure projects in \u201cthird countries\u201d, climate cooperation, advanced technology, space, agriculture, and healthcare.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The two countries inked agreements spanning energy, nuclear power, defense, technology, climate change and cultural exchange<\/p>\n","protected":false},"author":1,"featured_media":92537,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1635],"tags":[57,1258,7,1342,580,1343,147,1334],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-92536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trade","tag-adnoc","tag-dmcc","tag-enterpriseam-uae","tag-investment","tag-korea","tag-mubadala","tag-startups","tag-trade","wpautop","entry"],"acf":{"mongo_id":"be1092a0-4949-4b50-868e-13adb738c990","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/5\/2429.jpg","photo_position":"above","homepage_title":"","full_issue_title":"UAE inks economic and trade agreement with South Korea","related_issue":[92531],"teaser":"The two countries inked agreements spanning energy, nuclear power, defense, technology, climate change and cultural exchange","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/5\/.181ce0f2-6fe8-4153-a480-9d66cb1d866f.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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