Today's Edition
RASHA TABILA (ABU DHABI)
Trade and investment relations between the UAE and the Republic of Korea are witnessing significant developments, as evidenced by the volume of non-oil foreign trade between the two countries, which reached Dh256.6 billion from 2014 to the end of 2023, according to the Federal Competitiveness and Statistics Centre.
Since 2010, the total non-oil trade volume amounts to Dh371.7 billion, according to the Ministry of Economy. In early 2023, the UAE announced a plan to invest $30 billion in the Republic of Korea over the coming years, focusing on several key economic sectors. Additionally, a memorandum of understanding was signed between the Tawazun Council and Korea Aerospace Industries Ltd. regarding a joint development programme for the next generation of multi-mission cargo aircraft. The Korea International Trade Association (KITA) also organised a business forum with the Abu Dhabi Chamber of Commerce and Industry.
Trade Partnership
Korea is the 10th largest trade partner among non-Arab Asian countries within the UAE’s non-oil trade, and 30th globally. The UAE was the second-largest Arab trade partner, and 14th globally, for Korea in 2023, with non-oil trade between the two countries amounting to about Dh19.4 billion last year. The UAE also holds a 20% share in Korea’s trade with Arab countries.
Rapid Growth
According to an analysis conducted by Aletihad based on Ministry of Economy data on international trade relations between the UAE and Korea, non-oil trade between the two countries increased from Dh12.6 billion in 2010 to Dh19.4 billion last year, growing by 54%. Since 2010, trade volume grew from Dh12.6 billion in 2010 to Dh34.7 billion in 2011, then to Dh36.8 billion in 2012, reaching Dh31 billion in 2013, Dh39.2 billion in 2014, Dh34.1 billion in 2015, Dh32.7 billion in 2016, Dh34.8 billion in 2017, Dh22.2 billion in 2018, Dh18.3 billion in 2019, Dh17.8 billion in 2020, Dh17.3 billion in 2021, and Dh20.6 billion in 2022.
Imports and ExportsUAE imports from the Republic of Korea increased by 15.5% in 2022 to reach Dh15.6 billion ($4.1 billion) from Dh13.2 billion ($3.6 billion) in 2021, while UAE exports to Korea grew by 30.5% to Dh3.3 billion ($886 million) from Dh2.5 billion ($679 million) in 2021.
Korean Investments
Korean direct investment in the UAE exceeds Dh8 billion. According to the ministry’s data, the UAE hosts 3,802 registered Korean trademarks, 215 Korean trade agencies, and 138 registered Korean companies. Key sectors for Korean investments in the UAE include construction, wholesale and retail trade, motor vehicle repair, financial activities, insurance, manufacturing, real estate, transportation, storage, professional and technical activities, information, and communication.
On the other hand, the UAE’s direct investment in Korea amounted to $2.2 billion by early 2021, growing by 73% compared to early 2013. Major sectors for UAE investments in Korea include oil and gas exploration, aluminum manufacturing and marketing, manufacturing industries, wholesale and retail trade, shipping and storage, telecommunications and IT, tower cranes and elevators, maritime port operations, and construction.
Partnerships and Agreements
In recent years, the UAE and Korea agreed to upgrade their bilateral relations to a “special strategic partnership” in 2018. In mid-2023, the first round of the special strategic dialogue was held in Seoul, discussing key topics such as economy and trade, comprehensive economic partnership, civil aviation, energy, defence, space, 5G and 6G networks, artificial intelligence, and logistics.
In mid-2023, the Emirates Nuclear Energy Corporation announced that the fourth and final unit of the Barakah Nuclear Energy Plant was ready for trial operations. In December 2009, the Emirates Nuclear Energy Corporation awarded a $20 billion contract to a consortium led by Korea Electric Power Corporation (KEPCO) to build the Barakah plant.
Green Economy
In July 2023, the eighth round of the joint economic committee between the UAE and Korea met in Seoul to discuss topics including the green economy, clean energy, SMEs, nuclear energy, investment, healthcare, medical services, water resources, smart agriculture, new industries, smart infrastructure, technology, communications, space, tourism, and intellectual property.
Last October, the UAE and Korea announced the completion of negotiations for the Comprehensive Economic Partnership Agreement, paving the way for a new era of constructive trade and investment cooperation and mutual economic growth. In July, the joint economic committee agreed to expand and diversify the umbrella of economic cooperation across 11 strategic sectors and stimulate mutual investments to support the developmental agendas of both countries and their transition towards a more flexible and competitive economic model, relying on new economy sectors. The agreement aims to explore more promising investment opportunities in green economy, clean energy, SMEs, nuclear energy, trade and investment, healthcare, medical services, water resources, smart agriculture, emerging industries, smart infrastructure, technology, communications, space, tourism, and intellectual property.
28 Flights Weekly
There are now 28 flights per week between the UAE and Korea, 21 of which are operated by national carriers, according to data from the General Civil Aviation Authority.
The data obtained by Aletihad shows that Etihad Airways operates 11 weekly flights to Korea, while Emirates Airlines operates 10 weekly flights, and Korean Air operates 7 weekly flights. The UAE’s national carriers have successfully increased their flights to the country over the last few years to keep pace with the growth in air traffic amidst the countries’ strong bilateral relations and strategic partnership.
The visa waiver agreement, which has increased the number of visits between the two countries, also contributed to enhancing commercial relations between the UAE and Korea through air travel.
Etihad Airways launched its first direct flight connecting Abu Dhabi International Airport and Incheon International Airport in Korea on December 10, 2010, and had transported 1.3 million passengers along the route by December 2020.
Tourism Cooperation
In July 2023, the UAE and Korea agreed to ehance cooperation in the tourism sector, including providing support to startups entering the tourism market in both countries.
The two sides also decided to continue implementing various joint projects to extend the outcomes of the “Korean Travel Week in the UAE” event held in May 2023, and discussed mechanisms to increase the number of flights between the two countries in the coming period.
Over 200,000 Korean tourists visit the UAE annually. The national carriers have played a significant role in strengthening tourism between the UAE and Korea, meeting the growing demand from passengers and cargo on this vital route. In 2018, 11,427 Emiratis visited Korea, a 4% increase over 2017.
