United Arab Emirates commits to pouring $30 billion into South Korea, according to the president's official statement
The United Arab Emirates (UAE) has announced a significant investment of approximately $30 billion in South Korea, focusing on strategic sectors such as nuclear power, defense, hydrogen, solar energy, and other industries. This investment is part of an effort by both countries to increase economic collaboration and strengthen bilateral ties.
During a four-day state visit to the UAE, South Korea's President Yoon Suk-yeol revealed this investment, which will be led by Mubadala Investment firm, a sovereign wealth fund from the UAE. The investment strategy will involve cooperation between the state-run Korea Development Bank and Mubadala.
In the realm of nuclear power, South Korean firms are collaborating with international partners, including those from the UAE, to advance clean energy solutions. The UAE's involvement in this sector is expected to leverage South Korea’s advanced nuclear power technology, potentially expanding nuclear technology and energy expertise.
The UAE and South Korea have also signed agreements to boost military cooperation. This includes collaboration on the development and deployment of the KF-21 Boramae supersonic fighter jet, with UAE pilots participating in test flights and training programs organised by South Korea. South Korea also supports the UAE’s operations of the Cheongung II medium-range surface-to-air missile system, purchased by the UAE in 2022.
The UAE's investment extends into the hydrogen and solar energy sectors, aiming to benefit from South Korea’s expertise in clean energy technology development. This investment aligns with South Korea’s industrial focus on future-oriented energy solutions like hydrogen and solar, complementing UAE’s efforts to diversify and enhance sustainable energy capabilities.
The investment was made during a meeting between South Korea's President Yoon Suk-yeol and UAE’s Sheikh Mohammed bin Zayed al-Nahyan in Abu Dhabi. The details of the investment strategy were not immediately clear, but the investment is part of a trust fund that guarantees the investment under any scenarios, according to Yoon's office.
Kim Eun-hye, Yoon's press assistant, made a statement about the investment. The investment in South Korean firms is one of the 13 memorandums of understanding signed during the summit.
This $30 billion commitment is not isolated but fits within broader strategic partnerships that include technology sharing, personnel training, joint R&D, and industrial ties that continue to deepen bilateral relations.
Note that while the $30 billion figure specifically attributed to UAE-South Korea investment covers these sectors, much of the broad publicly available investment and trade news recently centers on South Korea’s huge $350 billion investment deal with the U.S. This indicates that UAE’s involvement is a significant but distinctly separate engagement primarily in defense and clean energy sectors aligned with South Korea’s technological strengths.
In summary, the UAE’s $30 billion investment in South Korea targets nuclear power, advanced defense systems (notably the KF-21 fighter jet and missile systems), hydrogen and solar energy development, plus associated industrial sectors, supported by bilateral agreements enhancing military training and technology transfer.
The investment in South Korea by the UAE, amounting to approximately $30 billion, will be managed by Mubadala Investment firm and will involve cooperation with the Korea Development Bank. This investment is expected to boost South Korea's advanced nuclear power technology and support the UAE's efforts in nuclear energy.
The financial commitment from the UAE further aligns with South Korea's focus on future-oriented energy solutions like hydrogen and solar, enhancing their joint capabilities in sustainable energy.
