The key driver for South Korea and the UAE relations is the Comprehensive Economic Partnership Agreement, marking a milestone for their plans for a shared future. This move helps secure alternative markets and further development for Abu Dhabi, following the policy of deepening ties with the East.
It is no secret that the Gulf states are seeking new partnerships and strengthening the enduring ones, both in the West and the East, thereby securing their regional and international standing. Observing the current trends, East Asian states appear to be perfect partners, with whom the UAE or Saudi Arabia foresee a wide range of opportunities. Most Asian states, such as Japan and China, import hydrocarbons from this region, further increasing the interdependence between Arab states and their Asian counterparts. However, raw materials are not the only subject of exchange – there are also military and investment aspects that states are looking for when deepening partnerships. South Korea’s diplomatic relations with the United Arab Emirates serve as an intriguing case study for analysis due to the former’s rapid economic development and aspiration towards the middle power status, highlighting its strategic importance in East Asia and beyond. For the UAE, it is another example of its global outreach and expanding network. Besides, close bilateral cooperation bolsters a broader alliance with the United States, having a significant meaning for their security as the priority.
South Korea’s Contribution to the Middle East’s Security and Economy – An Overview
It is undeniable that for South Korea, as well as for the UAE, the United States is the most important partner. However, considering Seoul’s military activity and presence in the Middle East during the ‘80s and ‘90s, it was limited during that time. Levkowitz states that South Korea was reluctant to send its soldiers to the region and participate in the first Gulf War – the only way they became involved was by sending over 340 soldiers for “logistics assistance.” A similar situation occurred in Iraq (2003), where the soldiers were supposed to be deployed, but they could not reject the US’s request during that period. Eventually, South Korea sent its troops following the peacekeeping mission agenda and simultaneously remaining neutral in the conflict.
The foreign policy priorities of Seoul began to slowly change in the 1960s, but it did not fully enhance its position in the region. The perception shifted in the early 70s’, gradually increasing its economic activity within the Middle Eastern states. Bilateral ties began to thrive, and the South Korean enterprises (chaebols) entered the market, recognizing investment opportunities. Apart from that, South Korea became one of the largest importers of hydrocarbons, with Saudi Arabia emerging as the key Arab partner for Seoul. Adel Abdel Ghafar reports that South Korean authorities made energy and construction contracts pillars of their economic cooperation with the region, notably with the Gulf states.
Since 1971, the UAE authorities embarked on a path of consolidating power and building strong economic foundations. Dubai and Abu Dhabi were the most rapidly developing emirates, attracting foreign capital and spending large sums on infrastructure to make the UAE a global trade and business hub. However, it is also important to note that the growing diplomatic relations were the key to stepping into the regional and international stage as a developing and ambitious state. The UAE established diplomatic relations with the Republic of Korea in 1980. In the 1990s, the UAE became South Korea’s second-largest Middle Eastern trade partner, following Saudi Arabia. In 2008, their bilateral ties were shifted to the “strategic partnership” level.
Key Fields of Bilateral Cooperation
Diplomacy
Today, the UAE, as the only Middle Eastern state, enjoys the status of a special strategic partnership that was elevated by South Korea in 2018. In a public statement, both states agreed to expand their bilateral cooperation in “diplomacy, defense, education, medicine, and energy.” The official visit paid by the South Korean President, Moon Jae-in, was among the many that opened the path toward further engagement in strategic sectors with mutual benefits. A comparative analysis of the official visits the South Korean Presidents made to the UAE, Saudi Arabia, and Qatar since establishing bilateral diplomatic relations shows that the UAE’s officials have had the most interactions with their South Korean counterparts within the region. These visits primarily focused on economic, industrial, and defense matters, which is consistent across all three Gulf states. However, there are minor differences; for instance, discussions between Doha and Seoul emphasize sports and tourism.
In May 2024, the President of the UAE, Sheikh Mohamed bin Zayed Al Nahyan, embarked on an official visit to South Korea, which was the first visit for him in the role of the President. Before this visit, he had traveled to South Korea multiple times in his capacity as Crown Prince of Abu Dhabi. Given the abundance of talks and the outcomes reflected in the official statement, it is evident that this meeting held great significance for both nations. It opened a wide range of opportunities in strategic cooperation areas, providing the UAE with an additional route for economic diversification.
Economy and Investment
Following Emirati sources, for South Korea, the UAE ranks second as the most important trade partner in the MENA region and 14th in global trade. For the UAE’s part, Seoul currently ranks 30th globally as a main trade partner. Crude petroleum is the UAE’s key export commodity to South Korea. In exchange, Seoul exports cars and other vehicles, but what has gained the most attention is the Comprehensive Economic Partnership Agreement (CEPA), which eliminatestariffs on over 90% of imported goods and contributes much to both economies. According to the official statement in May 2024, the agreement covers areas such as economy and investment, conventional energy and clean energy, peaceful nuclear energy, defense, and defense technology, and more areas that are crucial for deepening bilateral ties, notably referring to soft power policy (climate change, cultural diplomacy, technology, education, etc.). Seoul has already marked its presence by building the Barakah nuclear power plant in the UAE, the first in the Arab world. An Emirati domestic institution – Mubadala Investment Company – showed its willingness to increase its presence in the South Korean market by signing two Memoranda of Understanding, first in January 2023 with the Korea Development Bank and second in May 2024 with the Korean Ministry of Economy and Finance to establish pillars for bilateral cooperation. The Korea-UAE Sovereign Investment Partnership (January 2023) is the outcome of the concluded document to facilitate the development of investment strategies. The UAE’s commitment to allocate over $30 billion to South Korea’s key sectors is another sign of further engagement with Seoul. According to the Emirates News Agency, all of the Emirate’s efforts regarding the conclusion of CEPA are to “double the UAE non-oil foreign trade” (up to AED 4 trillion) and “increase exports to AED 800 billion by 2031”. To this day, Abu Dhabi has signed bilateral trade agreements with the following states: India (2022), Israel (2022), Indonesia (2022), Türkiye (2023), Cambodia (2023), and Georgia (2023), with more expected soon.
Military
For many years, the United States has remained the top arms exporter to the UAE, along with France and, to some extent, Russia and Italy (2000-2019). However, this trend has recently shifted, and South Korea joined the ranks of the largest arms exporters to the UAE. Under the $3,5 billion preliminary agreement signed in 2022 and finalized in 2024, Abu Dhabi was reported to acquire the Korean Cheongung II (M-SAM) mid-range surface-to-air missile system with a view to strengthening its defense capabilities. Prior to that, in 2021, the UAE purchased Chunmoo Multiple Rocket Launcher System (MRLS). Both states have also agreed to commence work on a military multi-mission cargo aircraft, MC-X.
Seoul and Abu Dhabi took additional steps to bolster their relationship. In 2024, along with the United States, they conducted their first eleven-day military drills at the Korea Combat Training Center, where the Emirati forces had already appeared for the first time in 2023. Apart from that, in 2011, South Korean troops were deployed to the UAE, where they established a unit under the name “Akh” (brother), creating a strong base for fostering bilateral ties and further prospects of military cooperation, such as the aforementioned joint training exercises.
How does South Korea Fit into the Emirati Diversification Strategy?
Seoul remains a key economic partner of the Gulf states, especially the United Arab Emirates, but stays on the sidelines when it comes to greater military presence and activity. South Korea is a prime American ally, whereas the UAE has been designated as a “Major Defense Partner” by Washington, enhancing the US’s standing in strategic areas. The authorities in the UAE, however, embrace the concept of a “bridge” that connects the East and the West, which makes them not fully reliant on the US. As a result, Abu Dhabi reaches out to multiple states, marking its solid position in regional and international scope.
The UAE’s economic agreement with South Korea is a milestone for the foreseeable future, especially between the Sheikhdom and East Asian states. The country’s authorities have repeatedly stressed the importance of diversification strategies and bolstering ties with their strategic partners. South Korean-UAE relations are blooming, akin to China and Japan. The key sectors driving this growth include trade, clean energy, advanced technologies, and defense. There is a strong demand for investment in particular sectors, making them an ideal fit for the Emirati long-term development strategies. Also, due to this progress, Abu Dhabi has obtained the capability to extend its presence to East Asia and find alternative markets to develop, securing its future. Not only the UAE but also the rest of the Gulf states are aware of the waning role of hydrocarbons that hitherto have contributed much to their economies. Hence, they notice the potential Asia has, marking their international influence, which has become more important than ever in the 21st century.
