UAE, South Korea seek to strengthen investment cooperation

Image source: WAM

The UAE and South Korea explored ways to strengthen economic and investment cooperation to promote entrepreneurship and support small and medium-sized enterprises in both markets.

In a bilateral meeting between UAE Minister of Economy Abdullah bin Touq Al Marri and Lee Young, the two countries agreed on new initiatives in the entrepreneurship sector, including programs and facilities to promote entrepreneurial growth, increase investment and facilitate exports to new markets, South Korean SMEs and Startup Minister.

Bin Touq and Young discuss ways to incentivize and encourage SME owners and entrepreneurs to invest in emerging economic sectors to increase their contribution to GDP growth.

“The UAE is South Korea’s second largest trading partner in the GCC and the Arab region by 2022. In the first two months of 2023, the UAE’s total non-oil foreign trade with South Korea was $917 million (AED3.4 billion), Year-on-year growth9 Bin Touq said, adding that by 2022, our non-oil trade volumes will total AED19.5 billion, an increase of 14% year-on-year.

The UAE’s SME sector plays a key role in driving the growth of the national economy and ensuring its sustainability. Small businesses contribute approximately 63% to the country’s GDP, which will exceed AED734 billion by 2020.

twitter one #UAE and #South Korea Discuss new mechanisms to strengthen economic and investment cooperation and promote entrepreneurship in both countries #KoreanBusinessDay In the Middle East 2023′ event. #Ministry of Education pic.twitter.com/WYGP6bjfoQ

– Ministry of Economy – UAE (@Economyae) June 12, 2023

SMEs account for 94% of the total number of private sector companies operating in the UAE, with a staggering 557,000 companies.United Arab Emirates Ministry of Economic Affairs The goal is to increase this number to 1 million by 2030.

The SME sector accounts for 86% of private sector employment, underscoring their importance and significant contribution to job creation across economic and business sectors.

South Korea specially invited the UAE to participate in “COMEUP 2023”, the largest startup event in the country, scheduled for November 8-10, 2023.

The UAE recently unveiled plans to invest around AED110 billion in South Korea over the next few years. The UAE’s investment in South Korea is concentrated in several key areas such as industry, trade, shipping, communications, real estate, and commerce.

Meanwhile, Korean FDI in the UAE reached about AED8.1 billion by early 2021, a 73% increase since early 2013.

UAE expands trade corridors

Meanwhile, the UAE has so far signed five Comprehensive Economic Partnership Agreements (CEPAs) with India, Israel, Indonesia, Turkey and Cambodia, with the first two already in force. The country is currently negotiating with more strategically important markets at regional and global levels to establish similar agreements.

UAE agrees with Costa Rica, Thailand, Malaysia and Vietnam.

In early June, the UAE and Cambodia signed a CEPA agreement that is expected to more than double non-oil bilateral trade from $407 million in 2022 to $1 billion within five years.

World Trade Organization (WTO) Global Trade Outlook and Statistics Report 2022indicating that the UAE’s trade in goods with the rest of the world will reach $1.024 trillion in 2022, due to an increase in the share of imports and exports due to rising oil prices.

read: UAE, Cambodia sign bilateral trade deal