Defence at centre of UAE and South Korea $65bn investment deals

The UAE and South Korea have agreed to bolster bilateral economic ties through cooperation and investment projects worth $65 billion.

The two countries agreed to pursue projects worth $35 billion in the defence industry and $30 billion in investment cooperation, the state-backed Yonhap news agency reported, citing Kang Hoon-sik, chief of staff of South Korean President Lee Jae Myung.

Defence industry cooperation will include design, training, maintenance and repair, he said.

The new framework aims to help implement the UAE’s investment pledge to South Korea and financially back the entry of Korean companies into the Gulf nation and joint expansion into third-country markets, Kang said.

The UAE and South Korea intend to expand collaboration on nuclear fuel supply, maintenance capabilities and the application of artificial intelligence to plant operations, the report said.

The UAE’s Barakah nuclear power plant was built by the state-run Korea Electric Power Corporation and is now fully operational.

The two nations will actively pursue joint entry into third-country markets as global demand for nuclear power grows amid surging energy needs for AI and other technologies, Kang said.

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Talks will move ahead during a proposed visit by Khaldoon Khalifa Al Mubarak, chairman of Abu Dhabi’s Executive Affairs Authority, to South Korea in March or April, Kang said.

In October 2023, the UAE became the first Arab country to sign a comprehensive economic partnership agreement with South Korea.

Seoul agreed in November 2025 to work with the UAE on the US-backed Stargate project to build an AI data campus in the Gulf country.

Meanwhile, South Korea’s export credit agency has committed $2 billion in financing to the state-backed Abu Dhabi National Oil Company (Adnoc).