Yoon expands cooperation with “Middle East Big 3”

Oct 26, 2023, 10:44 am

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Saudi Crown Prince Mohammed bin Salman gives South Korean President Yoon Suk Yeol a ride to the Future Investment Initiative forum in Riyadh on Oct. 24, 2023. / Source: Yonhap News

AsiaToday reporter Hong Sun-mi

President Yoon Suk-yeol has strengthened cooperative relations with the “Middle East Big Three” through his trip to the United Arab Emirates (UAE) in January and the recent state visits to Saudi Arabia and Qatar, raising expectations for the second construction boom in the region.

Yoon’s Middle East strategy not only strengthened existing cooperative relationships centered on construction and energy, but also laid the groundwork for cooperation in high-tech industries, such as future energy, electric vehicles, and defense.

Some say that the South Korean government’s strategy to solve the concerns of Middle Eastern countries that have to prepare for the post-oil era despite their oil money was effective with the strength of Korea’s high-tech technologies such as future industries. The completion of such cooperation is based on Yoon’s plan to break through the complex crisis facing the country with oil money.

According to the presidential office on Wednesday, MOUs and business contracts worth US$20.2 billion (approx. KRW 27.2 trillion) have been signed in the Middle East on the occasion of Yoon’s latest state visit, with US$15.6 billion (approx. KRW 21 trillion) in Saudi Arabia, and US$4.6 billion (KRW 6.2 trillion) in Qatar.

“A huge playground of $79.2 billion (approx. KRW 106.7 trillion) has been created for South Korean companies looking to enter the Middle East big three,” senior presidential secretary for economic affairs Choi Sang-mok said.

One of Yoon’s biggest diplomatic achievements is that he reached an agreement to cooperate in all areas ranging from economy to security through a joint statement with Saudi Arabia, the richest country in the Middle East.

As the two countries have decided to cooperate for the success of the Neom project, which costs US$500 billion (approx. KRW 670 trillion), additional results can be expected in the US$25 billion railway tunnel and the Oxagon port project, which Korean companies are seeking orders.

South Korea signed a joint oil reserve project agreement worth 4 million barrels of crude oil with the UAE in January, followed by a 5.3-million-barrel crude oil reserve deal with Saudi Arabia.

#Yoon Suk-yeol #Middle East #Saudi Arabia #Qatar #UAE