The Export-Import Bank of Korea (Korea Eximbank) announced on Jan. 25 that it will establish and operate a “Saudi Desk” to support projects in the Middle East, including Saudi Arabia. The Saudi Desk of Korea Eximbank is expected to play a specialized role in handling business related to projects in Saudi Arabia and other Middle Eastern regions.
Specifically, the Saudi Desk is planned to undertake various tasks for financial support in Saudi projects, including dedicated customer company consultation, financial support and market research for the project’s initial stages, management of key contractors and project owner networks, and formulation of effective financial support policies.
Korea Eximbank’s representative stationed in Riyadh, Saudi Arabia, is set to engage in close collaboration with the headquarters through on-site support focused on discovering promising projects, establishing cooperation channels with project owners, and providing consultations for local businesses. This approach aims to support South Korean companies in securing projects in the Middle East.
Saudi Arabia remains a traditional and crucial market for key contracts for South Korean companies. Looking at the overseas construction contract performance, South Korea secured the top position in 2021 with US$5.7 billion, and in 2022 it secured the second position with US$3.5 billion. In 2023, South Korea secured the second position again with US$9.5 billion.
Large-scale projects related to the “Vision 2030” initiative, such as Neom City, continue to be commissioned, leading to the anticipation of an increase in future contracts for South Korean companies. In particular, with expectations for high-value-added projects such as investment and development, and new renewable energy initiatives, as well as subcontracting projects, proactive financial support from the Korea Eximbank is considered a crucial requirement to enhance the contracting opportunities for South Korean companies.
Korea Eximbank has provided approximately US$39.6 billion in financial support for projects in Saudi Arabia, US$35.5 billion in the UAE, and US$14.4 billion in Qatar, totaling around US$161 billion in the Middle East region, based on approved amounts to date.
Korea Eximbank has signed a framework agreement (F/A) with key contracting entities in the Middle East, including a US$6 billion agreement with Saudi Aramco in 2023 and a US$5 billion agreement with UAE’s Abu Dhabi National Oil Company (ADNOC) in 2022.