RIYADH, 26 March 2007 — Three memoranda of understanding (MoUs) were signed between Saudi Arabia and South Korea in the field of information technology, industrialization, and financial guarantee, in a major event here yesterday attended.
The event was attended by South Korean President Roh Moo-hyun, Saudi Minister of Commerce and Industry Hashem Yamani, Governor of the Saudi Arabian Investment Authority (SAGIA) Amr Al-Dabbagh and head of the Saudi Chambers of Commerce and Industry Abdul Rahman Al-Rashed.
The first MoU was between SAGIA and Korean SBC (Small Business Cooperation) regarding the discovery of cooperation venues and ways to encourage small and medium joint venture establishments in both countries in the areas of information technology, petrochemicals, transport and energy.
The second MoU was signed between Marfiq (Power and Water Utility Company for Jubail and Yanbu) and the Korean Exports Insurance Company (KEIC). The agreement was signed to provide financial support to the project endorsed in both industrial cities.
The third MoU was signed between the Saudi Chambers of Commerce and Industry and the Korean Trade Investment Promotion Agency.
The agreement’s purpose is to find medium-sized private Korean companies which are willing to invest in the Kingdom and provide them with support.
Roh, who witnessed the signature of the three MoUs, said that he had arrived in the Kingdom with businessmen to promote economic relations between the Kingdom and his country. He also lauded the role played by the Kingdom to secure oil prices.
“Korea is ranked the 4th in the Saudi market in terms of foreign import,” he said. He noted how the Kingdom was going through an infrastructure development plan which “seeks to open its market to exporting countries.”
“The Kingdom is seeking to depend on its natural resources in non-petrochemical areas,” he said.
He lauded Korean companies, saying that they were “up for competition” in global markets, especially in the fields of petrochemicals, energy and railways. He also said Korea was among the best countries in the world in terms of training and exporting human manpower.
Abdul Rahman Al-Anqari, head of the Saudi side in the Saudi-Korean Business Council, said that Saudi businessmen were interested in the experience of Korean companies in information technology, telecommunications, construction work, automobile industry, as well as in the tire industry.
Several South Korean companies have signed over 22 mega deal projects with Saudi companies in the areas of petrochemical industry, power plants, as well as water desalination plants.
Al-Rashed said that the large business delegation which attended the Saudi-Business Council illustrated the interest from Korean companies to form various joint ventures with Saudi companies. He, however, mentioned that the Korean investments in the Kingdom did not live up to the expectations from both countries, noting that the Kingdom was witnessing an economic boom in several industries.
“Saudi Arabia offers a wide range of investment opportunities which are estimated at SR624 billion in value,” he said. He gave the example of investment opportunities in the five economic cities which have been launched last year as well as the railway projects, industrial projects, natural gas projects, and services projects.
“All of these projects represent a basic strategic resource for the development plan in the Kingdom,” he noted.
The trade flow between Saudi Arabia and Korea is $23.5 billion as of last year. The total value of Korean exports to the Kingdom was $3.5 billion, mainly in the automobile industry and electronics.
The trade volume is in favor of the Kingdom, whose main exports to South Korea are crude oil and petrochemical products.