Igniting Trade and Tech Partnerships – President Sheikh Mohamed’s Visit to China and South Korea
Trade Deals, Exchange of Research and Technology, talks about strengthening of defence, and energy would be top priorities in the list of UAE’s President as he steps into South korea for a 2 days visit before going to China.
The visit’s main aim is to make the UAE diversify its economy from a primary oil based economy. It is currently the second largest economy in the Middle East.
The President is currently in Seoul for a 2 day visit, and will go to Beijing on Thursday for a state visit. According to a senior researcher at Japan’s Jime Centre, Institute of Energy Economics, “the primary reason for President Mohammed’s visit to the 2 countries is to have access to the recent technological advancements and he wants technology transfers to UAE from both China and RSK.”
The President on his X handle was quoted saying, “Today I arrived in Seoul, where I will join President of South Korea Yoon Suk Yeol in discussing ways to advance the Special Strategic Partnership. Between UAE and Republic of South Korea, through economic partnership and close people to people ties.”
China
The United Arab Emirates is the largest trading partner of China in the Middle East. The two nations mainly deal in crude oil, petrochemicals, and artificial intelligence. It is a fact that Chinese investments have increased at a rate of 16 percent to $1.3 billion, said Zhang Yiming, Chinese Ambassador to UAE in Abu Dhabi last week.
UAE increased its investment manifold (120 percent) in China since last year, almost amounting to 90 percent of investment of Middle Eastern countries and the rest of the Arab world in China.
Mr Kondo, the Japanese researcher, said that UAE may pursue free trade agreement with China as reports say that China GCC FTA negotiations have stopped for the time being and is uncertain when it would start.
The value of no oil trade between the two countries amounted to Dirhams 264.2 billion ($72 billion) in 2022, showing an increase of 18 percent from 2021 when it was Dh223.8 billion according to official sources.
Republic of South Korea
The UAE is currently holding talks with Serbia, Vietnam, the Philippines, New Zealand, and Ecuador to make deals and forging partnerships after the talks with South Korea. The highlight of the talks with Seoul is that UAE and RSK would have Foreign Direct Investment in each other’s markets helping private sector to grow by forming partnerships with the other nation’s companies.
RSK helped UAE to build the $20 billion Barakah Nuclear Power Plant that started construction in 2009 and started to operate fully in April 2021 providing ample electricity to the cities. Talks are going on for a second nuclear plant in the UAE and South Korea is likely to get the contract to build it. UAE is 2nd largest Arab trade partner of RSK and 14th globally, amounting to 20 percent of South Korea’s trade.
According to official data, UAE’s investments rose to $578 million in the Republic of South Korea while RSK invested around $2.2 billion in the UAE.
