Lee Hyo-jin covers the Bank of Korea, the banking industry and broader financial news. Her previous beats include foreign affairs, North Korea and general reporting on Korean society.
Middle East emerges as Korea's key arms export market
United Arab Emirates (UAE) fighter jets escort Korea’s presidential jet carrying President Lee Jae Myung and first lady Kim Hea Kyung over Abu Dhabi on Nov. 17 (local time) on a state visit. Yonhap
By Lee Hyo-jin
Middle Eastern nations have become increasingly important customers for Korea as it seeks to position itself among the world’s top arms exporters, according to a recent research paper.
A study published earlier this month by the Export-Import Bank of Korea, titled "Trends in the Middle Eastern Defense Industry and Implications," noted that Middle Eastern countries now account for roughly one-third of global weapons imports.
Qatar, Saudi Arabia, Egypt and Kuwait rank among the world's top 10 arms buyers, driven in part by persistent geopolitical tensions across the region.
Defense spending in major Middle Eastern nations surged to $220.6 billion last year, or about 9.5 percent of global military expenditures. Many governments in the region increased their defense budgets compared with the previous year, with an average growth rate of 15.6 percent.
"Middle Eastern nations have shown strong interest in Korean defense companies for their competitive pricing, reliable delivery and the expandability of Korean weapons systems compared with U.S. and European options," the report said.
It added that Korea's arms exports to the Middle East more than tripled in the last five years, rising from roughly $241 million in 2019 to around $747 million in 2024.
With local production initiatives expanding across the Middle East, the report noted that Korea's strategies will need to go beyond traditional exports. It recommended pursuing joint ventures with local firms to assemble or manufacture equipment on-site, a model increasingly favored by buyers seeking technology transfers and domestic job creation.
These findings come as President Lee Jae Myung's recent visits to the United Arab Emirates (UAE) and Egypt have highlighted Korea's defense cooperation initiatives.
Following bilateral talks on Tuesday (local time), Lee and UAE President Mohamed bin Zayed Al Nahyan agreed to pursue weapons contracts that could total up to $15 billion. Emirati military officials have also shown interest in Korea's KF-21 fighter jet, fueling speculation about collaboration on advanced weapons systems.
After talks with Egyptian President Abdel Fattah el-Sisi on Thursday, Lee said he hoped to see progress in bilateral defense ties, including the joint production of the K-9 self-propelled howitzer.