Saudi Arabia signed 4 memorandums of understanding (MoU) with Korea, marking a milestone in its ongoing bilateral trade discussions with South Korea. The agreements aim to expand the volume of industrial investments between the two countries. This came in a meeting with the kingdom’s industry minister and his Korean counterpart in Seoul.
The visit of an industrial delegation from Saudi Arabia to South Korea witnessed more than 24 meetings with the private sector and government agencies. Moreover, the visit involved 7 field visits to factories.
Joint projects
Saudi Industry and Mineral Resources Minister Bandar Alkhorayef accompanied by several Saudi leaders and officials concluded his official visit to three Korean cities on Sunday. Alkhorayef met with a large number of Korean senior officials in the industrial and mining sectors to discuss enhancing cooperation between the two countries.
Moreover, Alkhorayef met with Lee Chang-yang, Korea’s minister of Trade, Industry and Energy. They discussed opportunities to enhance cooperation between the two countries and topics of common interest.
During the meeting, they discussed developments in joint projects and agreements. They reviewed promising investment opportunities between Saudi Arabia and South Korea in various industrial sectors. Additionally, they tackled trade exchange and opportunities for developing non-oil exports between the two sides.
Bilateral meetings
During the meeting, the ministers signed a memorandum of understanding between the Saudi Authority for Industrial Cities and Technology Zones (MODON) and the Korean GL Rapha Holding Company. The agreement included an investment value of SAR750 million ($199.93 million).
The agreement was for the manufacture of vaccines, biotechnology, and chemicals. Moreover, it aims to allocate 51 thousand square meters of industrial land in Sudair City for Industry and Businesses for the projects.
The Saudi Minister held a series of bilateral meetings with officials from several Korean companies. They discussed the promising investment opportunities available in the industrial and mining sectors in the Kingdom. Alkhorayef also highlighted the potential that many sub-sectors have.
The meetings reviewed the nature of the investment environment in Saudi Arabia, which is characterized by high efficiency, ease of doing business, establishing and managing projects, and incentive materials and facilities that investors receive.
He also met with some Korean companies including Samsung Medison, Echo Pro, Hankook, LG Electronics, and other major companies.
Factory visits
Alkhorayef visited some factories, including the HD Hyundai Heavy Industries factory, which works in shipbuilding, industrial and engineering facilities, engines, and machinery, in the city of Ulsan.
Moreover, he visited the Doosan factory in Changwon-si and toured the factory facilities. He learned about the company’s most prominent works in thermal power plants, turbines, generators, desalination plants, castings, and coatings.
The minister also toured the KG Mobility (KG) factory, one of the largest car manufacturing companies in South Korea, Seoul. He was briefed on its most prominent findings in the manufacture of multi-use cars and crossover SUVs.
 Hyundai and PIF
Alkhorayef also visited the Hyundai Motor Company factory for manufacturing cars. He discussed with company officials the stages of implementing the joint agreement between the Public Investment Fund (PIF) and the company to establish a highly automated car factory in the kingdom.
Besides, Alkhorayef recently stated that Saudi Arabia is open to partnering with South Korea in mining investments. That is to help Seoul enhance the flexibility of its supply chain which includes rare metals.
The Saudi minister added that his country would be a great partner for bilateral cooperation in the field of minerals. Hence, the country has not yet explored the reserve of its untapped mineral resources.
He focused on the possibility of South Korea partnering with Manara Minerals, a joint venture established between Ma’aden and the PIF for investment cooperation that includes offshore mines.
Read: IMF urges GCC countries to further enhance non-oil sector growth
Mining investments
Minister Alkhorayef added that Saudi Arabia is opening the Al-Manara project to enter into partnerships with different countries. Thus, South Korea may be interested in investing in this company and different mines around the world to also ensure that the required demand is met.
He stressed that South Korea is one of the largest industrial countries in the world, and expects continued demand for minerals and metals within the country’s private sector.
He explained that the Kingdom possesses a value of about $1.3 trillion in mineral resources, such as phosphate, copper, zinc, and gold. That is based on the government’s Saudi Geological Survey, which covers a third of the country’s area.
Alkhorayef also revealed that 18 percent of the mineral resources in Saudi Arabia have been explored so far.
Expo 2030
Moreover, Minister Alkhorayef welcomed Korean companies to participate in Expo 2030, which will be held in Saudi Arabia. He stated Saudi Arabia’s goal of welcoming many Koreans to the exhibition. He expressed his hopes for opportunities that increase mutual understanding and enhance diverse exchanges.
Notably, the total Saudi non-oil imports from South Korea last year amounted to about SAR18.4 billion ($4.9 billion). Meanwhile, total exports reached SAR7.8 billion ($1.9 billion).
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