The UAE Ministry of Economy (MoE) and the Korea Federation of SMEs (KBIZ) have recently agreed to develop entrepreneurship and strengthen partnerships between SMEs through cooperation.
Abdullah Al Saleh, Under-Secretary of the Ministry of Economy; and Kim Ki-mun, Chairman of KBIZ, signed this MoU in the presence of UAE Minister of State for Entrepreneurship and SMEs, Dr Al Falasi.
Dr Al Falasi added, “The UAE attaches great importance to the development of the SMEs sector as one of the main pillars of the country’s new economic model and its strategic plans for the future in line with the ‘Principles and Goals of the 50’. The development of international partnerships is a major focus area of the UAE’s efforts in this regard, and South Korea is a major partner for the UAE in our efforts to develop entrepreneurship.”
“The signing of the MoU will help us strengthen the role of entrepreneurs and SMEs in the two countries in fields of economic cooperation and facilitate the development of partnerships, especially in the sectors of health technology and smart agriculture. It will also drive the growth of trade exchanges and stimulate the flow of quality investments in the fields of innovation, research and development,” the Minister highlighted.
The two countries agreed to jointly design partnership programmes to enable Emirati and Korean SMEs to make an easy entry into the markets of the two countries and prosper.
Knowledge sharing between the MoE and KBIZ on developing appropriate policies, programmes and legislations regarding entrepreneurship has also been part of this MoU to put the SMEs of both countries on stronger footings in terms of trade and investments.
Agreement reached on the development of a joint platform to support SMEs will help identify potential and promising investment opportunities in each other’s markets and will particularly help many aspiring Korean SMEs in company formation in Dubai.
MoU also highlighted the need for the exchange of market research and information, mutual participation in international entrepreneurship programs and extending expert support to the SMEs. While the entrepreneurship and SMEs sector account for 99% of the total companies in South Korea, the sector accounts for 98.5% of the private sector in the UAE.
In early April 2022, Korean Export-Import Bank (KEXIM) visited Abu Dhabi to explore ways of strengthening collaboration on export financing and discussed ways and solutions to co-finance Korean organisations looking toward doing business in Dubai UAE for import of goods and services from the UAE including projects undertaken by Korean EPC contractors, provided these projects use materials or expertise from the UAE.
The MoU is seen as a commitment between the two institutions to realize mutual
aspirations and objectives and in all expectations will have a significant positive impact on the export dynamics and relations between the UAE and South Korea and enhance their respective economies.
South Korea’s central bank in a statement, confirmed an agreement with the Central Bank of the United Arab Emirates (CBUAE) to extend a currency swap agreement for five years. The Bank of Korea and the CBUAE originally entered into a USD 5.5 billion currency swap deal which can be renewed and extended by mutual consent of the two countries.