UAE mulls investing in Koreas aerospace & defense market

By Jung Sung-ki

The United Arab Emirates (UAE) continues to emerge as a key industrial partner with South Korea by showing interest in establishing ties with Korean aerospace and defense firms, fueling hopes for future investments from the oil-rich country.

A group of 15 UAE representatives from state-owned investment firms and defense manufacturers in Abu Dhabi visited major aircraft and shipbuilding facilities in the southeastern region of South Korea last week.

The Abu Dhabi “learning journey” group arrived June 30 in Seoul for a weeklong stay in order to learn about the track records of Korea’s industrial developments and leverage the knowledge of diversifying the Arab state’s economy now heavily dependent on oil and gas industries by 2030.

Among the key participants were Dr. Jasem Ahmed Al Ali, senior business development manager in Mubadala Aerospace Unit; Shaikh Mohammed Al Mualla, director of planning and development of Abu Dhabi Airports Company; Jalal El Jazzar, group chief financial officer of Tawazun Holding, the investment unit of the Offset Program Bureau in Abu Dhabi; and Zaal Z. Al Mansoori, senior manager of the Industrial Development Unit at Tawazun.

“Yes, a lot of opportunities exist for cooperating with Korea’s aerospace industry,” said Ali from Mubadala, the investment vehicle of Abu Dhabi, after touring the facility of Korea Aerospace Industries (KAI), the maker of the T-50 Golden Eagle supersonic trainer jet, in Sacheon, about 430 kilometers southeast of Seoul.

If conditions are met, Mubadala could invest in Korea’s aerospace and defense firms, including KAI, said the air force colonel, though any investment in overseas companies should be decided after closely assessing economical and social values.

Ali also showed strong interest in Korea’s defense R&D programs, including those for unmanned aerial vehicles.

Later in the day, the delegation visited the dockyard of Daewoo Shipbuilding and Marine Engineering, the world’s second-largest shipyard on Geoje Island.

The group visited the facility of Hyundai Rotem, which manufactures the K1A1 and K2 tanks, in Changwon, and the Korean Air Tech Center in Gimhae on July 5.

Those from Tawazun, a strategic investment firm focused on the long-term development of Abu Dhabi’s defense manufacturing and technology, expressed keen interest in reviewing Korean companies’ maintenance, repair and overhaul capabilities.

“As the UAE is pushing for full-fledged industrial cooperation with South Korea, Abu Dhabi officials believe there is also high potential to advance the defense industries of the two countries,” said Christy Hyun-joo Lee, CEO of Daewon Advisory Services FZE, which coordinated the visit of the UAE officials.