During his six-day state visits to Saudi Arabia and Qatar, President Yoon Suk-yeol secured business contracts totaling $202 billion (27.3 trillion won). With these trips, he concluded his diplomatic rounds with the “Big 3” Middle Eastern countries, which began with a visit to the United Arab Emirates (UAE) last January.
Through these engagements, President Yoon created an impressive mega-project worth $792 billion across the three nations, heralding the bright onset of Middle East 2.0. This total includes last year’s US$290 billion MOU signed during Crown Prince Mohammad bin Salman’s visit to Korea, the US$300 billion investment promised during Yoon’s state visit to the UAE this year, a US$156 billion MOU from his visit to Saudi Arabia, and a US$46 billion agreement in Qatar.
In these recent trips, President Yoon broadened cooperation horizons with Saudi Arabia and Qatar, moving beyond traditional sectors like energy and construction to embrace decarbonization, eco-friendly construction, and clean energy, the “post-oil” sectors. With strengthened defense cooperation, he has laid the foundation for the next Middle East boom.
Senior Presidential Secretary for Economic Affairs Choi Sang-mok emphasized at a Doha press center, “We have kickstarted a decarbonization-based Middle East 2.0 by finalizing cooperation with the Big 3 Middle Eastern nations.”
Leveraging the evolving infrastructure demands shaped by Saudi Arabia’s Vision 2030 and Qatar’s National Vision 2030, Korea has gained a foothold in mega projects through smart infrastructure cooperation. Middle East infrastructure demands have evolved from a 1st generation of civil engineering and architecture to a 2nd generation featuring petrochemical plants and desalination facilities, and now, to a 3rd generation represented by eco-friendly smart cities.
In Saudi Arabia, both leaders agreed to collaborate for the success of the NEOM project. Korean enterprises are making headway with a US$250 billion railway tunnel project and the Octagon port business, among others. Chief Economic Secretary Choi stated plans to actively support the procurement of mega projects in Saudi Arabia like the Qiddiya entertainment complex, Red Sea Development, Roshn housing supply, and the Diriyah heritage site development, after receiving enthusiastic participation requests from the Saudi side.
Other accomplishments include strengthening of traditional cooperation in energy and infrastructure. Notably, the Korea National Oil Corporation and Saudi Aramco signed an agreement for a joint oil reserve of 5.3 million barrels. This follows a similar agreement with the UAE for 4 million barrels last January, further fortifying Korea’s energy security. Saudi Arabia also agreed on a Hydrogen Oasis initiative and a US$155 billion Blue Ammonia production cooperation agreement, laying the foundation for a hydrogen alliance.
Crown Prince Mohammad bin Salman assured President Yoon that Saudi Arabia “will continue to be Korea’s most reliable partner and oil exporter, meeting Korea’s crude oil demand.”
Regarding the defense and arms sectors, Korea and Saudi Arabia expressed their “intention to enhance cooperation and coordination in defense and arms that align with the mutual interests of both countries and contribute to regional and international peace and security.” Earlier, the presidential office mentioned that extensive defense cooperation discussions, including missile defense systems and firepower weaponry, are in their final stages and are “significant in scale.”
Qatar, a major global arms importer, has also signed a defense cooperation MOU, paving the way for defense information exchange and the establishment of a joint committee. Kim Tae-hyo, the first deputy director of the National Security Office, described it as “the first step in realizing the potential of bilateral defense cooperation.”
A stable LNG supply solution was discussed with Qatar, and cooperation was expanded to encompass various areas of the LNG industry such as the construction of LNG carriers, ship operations, and maintenance. Notably, a US$3.9 billion deal for the construction of 17 LNG carriers between HD Hyundai Heavy Industries and Qatar Energy stands out.
President Yoon’s recent visits to Saudi Arabia and Qatar are seen as laying the foundation for long-term economic cooperation, reminiscent of the 1970s when both nations contributed to South Korea’s construction boom. This time, collaborations were established to pave the way for essential infrastructural advancements in emerging sectors such as renewable energy, smart cities, IT, and manufacturing.
For instance, during the Korea-Saudi Investment Forum held on Oct. 22, many agreements and MOUs related to future industries were signed: Energy and Power, 2 contracts, 5 MOUs; Infrastructure and Plant, 1 contract, 7 MOUs; Advanced and Manufacturing Industries (including electric vehicles), 2 contracts, 17 MOUs; New Industries, 1 contract, 9 MOUs; and Financial Cooperation, 2 MOUs.
Similarly, during the Korea-Qatar Business Forum held the day before, MOUs and contracts vital for a steady supply chain and ongoing economic collaboration were signed in energy (2), new industries (6), plants (1), and trade finance (1).
President Yoon and the Presidential Office plan to closely monitor the economic achievements secured during the visits to Saudi Arabia and Qatar. Chief of Staff Choi commented, “The government will promptly take follow-up actions after this Middle East tour, ensuring that MOUs and consultations soon lead to tangible export and order results.”
Besides economic cooperation, diplomatic relations with both Saudi Arabia and Qatar were strengthened. On Oct. 24 (local time), President Yoon Suk-yeol and Crown Prince bin Salman jointly released a Korea-Saudi Joint Statement reflecting their shared vision for bilateral relations and cooperation on regional and international issues. This is the first such statement since President Choi Kyu-hah’s visit to Saudi Arabia in May 1980. Both countries affirmed their mutual benefit in supporting Saudi Arabia’s Vision 2030.
Saudi Arabia’s warm hospitality was also notable. Though not everything can be disclosed due to diplomatic customs, the Saudis displayed exceptional courtesy throughout. A highlight was when Crown Prince Mohammed bin Salman personally drove President Yoon to his destination. The Crown Prince unexpectedly visited Yoon’s accommodations for an unplanned meetup. The two had a private conversation for 23 minutes and then traveled to the event location with the Crown Prince driving for 15 minutes.
Furthermore, during their summit at the Amiri Diwan palace on Oct. 25, President Yoon and Sheikh Tamim bin Hamad Al Thani decided to elevate Korea-Qatar relations from a Comprehensive Partnership to a Comprehensive Strategic Partnership. President Yoon extended an invitation to Emir Tamim for a state visit, and the Qatari monarch expressed his intention to visit South Korea next year.
Another point of interest is that Middle Eastern allies are condemning North Korea’s nuclear and missile development. In the Korea-Saudi Joint Statement released on Oct. 24 by President Yoon and Prime Minister bin Salman, there was a clause condemning “all acts violating the U.N. Security Council resolutions aimed at curbing the proliferation of weapons of mass destruction, including nuclear and ballistic programs and weapon transfers.” Although some Middle Eastern countries, such as Iran and Syria, maintain close ties with North Korea, especially in the arms trade, the support from influential nations like Saudi Arabia and wealthy Qatar is expected to foster a friendly atmosphere for South Korea in the Middle East. Emir Tamim of Qatar also expressed to President Yoon the previous day, “We support South Korea’s policy on the Korean Peninsula” and oppos North Korea’s nuclear and missile provocations.