Korea and UAE ink 19 agreements, including $1.5B LNG carrier deals

President Yoon Suk Yeol of South Korea and United Arab Emirates (UAE) President Mohamed bin Zayed Al Nahyan made headlines on Wednesday as they signed a total of 19 agreements during President Mohamed’s two-day state visit to Korea. The agreements, mainly focused on the energy sector, are expected to strengthen the economic ties between the two countries.

One of the key agreements includes two letters of intent with Abu Dhabi National Oil Company for Korean companies to supply at least six liquefied natural gas (LNG) ships, a deal potentially worth $1.5 billion. This agreement comes as part of the UAE President’s pledge to invest $30 billion in Korea following a successful bilateral summit with President Yoon last year.

In addition to the energy sector agreements, the two leaders also signed a Comprehensive Economic Partnership Agreement (CEPA), marking Korea’s first free trade deal with an Arab country. This agreement is expected to further boost trade and economic cooperation between the two nations.

During their bilateral summit in Seoul, President Yoon and President Mohamed discussed expanding cooperation in various sectors including investment, energy, nuclear power, and defense industry. The two leaders also attended an official welcoming ceremony at the Yongsan presidential office in central Seoul, where they inspected the Korean honor guard and viewed a military band performance.

President Mohamed’s visit to Korea is historic as he is the first UAE president to make a state visit to the country. The visit was marked by various cultural exchanges and friendly interactions, including a stroll through Changdeok Palace in central Seoul. President Yoon also hosted a dinner banquet to welcome the UAE leader, reciprocating the hospitality shown during his own state visit to the UAE in January 2023.

The two leaders confirmed a consensus on the need to strengthen long-term and strategic defense cooperation, including through the Ahk unit, a Korean military unit deployed to the UAE since 2011 to help train the nation’s special forces. They also discussed expanding defense industry cooperation, highlighting the importance of maintaining strong bilateral ties in the defense sector.

Overall, President Mohamed’s state visit to Korea has been hailed as a success, with both countries reaffirming their commitment to deepening economic, trade, and defense cooperation. The signing of multiple agreements and the historic CEPA mark a new chapter in the relationship between South Korea and the UAE, setting the stage for further collaboration and mutual benefit in the years to come.