InterviewKEZAD offers risk buffer for K-biz as Korea-UAE CEPA opens opportunities
Economic zone highlights CEPA benefits, alternative logistics routes, manufacturing incentives
Khalid Al Marzooqi, vice president of Khalifa Economic Zone Abu Dhabi Group, speaks during an interview with The Korea Times at its newsroom in Seoul, Tuesday. Korea Times photo by Shim Hyun-chul
As geopolitical tensions around the Strait of Hormuz persist, uncertainty continues to cloud Korea's trade with the Middle East, with businesses here increasingly exploring ways around that risk while looking to best capitalize on growing regional demand for Korean goods.
Khalid Al Marzooqi, vice president of Khalifa Economic Zone Abu Dhabi (KEZAD) Group, said the United Arab Emirates and KEZAD are well positioned to support such efforts as regional manufacturing, assembly and distribution hubs for Korean companies, noting that the implementation of the Korea-UAE Comprehensive Economic Partnership Agreement (CEPA) makes this an opportune time for Korean businesses to establish operations there.
“Korean businesses are increasingly viewing UAE as an outstanding base for manufacturing location for their global operation and also viewing UAE as a stable, innovation‑driven base for regional and global expansion,” Al Marzooqi told The Korea Times in an interview on Tuesday during his visit to Seoul.
“And today we see more interest for production activity, not just export. Companies seek to localize manufacturing closer to customers and supply chains which UAE provide the right soft and hard infrastructure.”
KEZAD is the UAE's largest operator of integrated economic and industrial zones. With its 12 economic zones over sites totaling 550 square kilometers of area throughout the Abu Dhabi region, KEZAD provides businesses with seamless access to over 3 billion consumers across regional and global markets.
KEZAD’s strategic importance is increasing in recent months as the geopolitical tensions surrounding the Strait of Hormuz continue to drag on, despite regional demands for Korean industries such as food processing, clean energy, automotive and other high-tech sectors remaining solid.
“The strategy we have reached is that we can be 100 percent independent from the Strait of Hormuz for all logistics transactions with oil and gas, and also for cargo,” he said. “And the country is expanding the operations of Fujairah Port to reach that goal.”
An Etihad Rail passenger train, the UAE's first passenger rail service, is seen during its inaugural journey at Mohamed bin Zayed City station in Abu Dhabi, June 30. The service, which entered an introductory operational phase on the Abu Dhabi–Fujairah route the same day, will eventually connect four of the country's seven emirates. AFP-Yonhap
Fujairah Port is gaining renewed attention recently as it can be directly reached from the Arabian Sea via the Gulf of Oman without passing through the strait. KEZAD Group’s parent company, AD Ports Group, is managing 11 ports in the UAE, as well as containers and general cargo coming through Fujairah Terminal.
Fujairah is connected by Etihad Rail, but its infrastructure remains relatively limited compared with Khalifa Port, AD Ports Group's main commercial hub. AD Ports Group has been investing to close that gap by upgrading infrastructure, and Al Marzooqi said the group is expanding that operation "to make sure we can have full control of all transactions that happen outside the Strait of Hormuz, in case there are any disruptions."
Adding to KEZAD's appeal is the Korea-UAE CEPA, which took effect on May 1, establishing a bilateral free trade framework.
“The UAE-Korea CEPA agreement has further strengthened the relations between the two countries by facilitating trade and investment across a wide range of sectors, while opening new avenues for cooperation,” he said.
“Korea offers strong manufacturing and technological capabilities and strategic access to large markets, while the UAE has established itself as a global logistics and trade hub, connecting high-growth markets in the East and West.”
President Lee Jae Myung talks with United Arab Emirates President Mohammed bin Zayed Al Nahyan during their summit at the latter's presidential palace in Abu Dhabi, Nov. 18, 2025. Newsis
Under the Korea-UAE CEPA, Korea will eliminate tariffs on 92.8 percent of goods traded between the two countries within 10 years, while the UAE will remove tariffs on 91.2 percent. Tariffs on automobiles and auto parts, home appliances, cosmetics, Korean food products and defense goods will be removed immediately or in phases, giving Korean companies a stronger foothold in the Middle East.
The agreement is also expected to benefit Korean companies investing in KEZAD to establish manufacturing bases. Raw materials and components sourced from Korea will not be subject to tariffs, helping lower production costs. In addition, products manufactured there will qualify as “Made in UAE” goods, enabling Korean companies to take advantage of the UAE's network of CEPAs with more than 30 countries.
“Products made in KEZAD are eligible for ‘Made in UAE,’ which benefits from the trade agreements UAE signed with several countries and also benefit from UAE-Korea CEPA which remove most of the barriers and tariffs,” Al Marzooqi said.
Khalifa Economic Zone Abu Dhabi (KEZAD) Group headquarters in Abu Dhabi, United Arab Emirates / Courtesy of KEZAD Group
He added that KEZAD offers competitive utility rates and 100 percent foreign ownership, tax benefits, zero customs duties within the free zone and world class logistic connectivity.
“Whether it’s food processing, metals or the automotive sector, KEZAD offers sector-specific clusters that align with businesses’ operational requirements.”
KEZAD’s logistics capabilities includes 770,000 square meters of warehousing capacity, high-quality modular warehouses, light industrial units, cold storage, showrooms and other built-to-suit facilities. It also secures sizable land plots for manufacturing and logistics investment.
In 2015, Songwon Polysys Additives, a Korean polymer company considered the world's second-largest producer of polymer additives, commissioned a plant at KEZAD. The facility now serves customers in the UAE, Saudi Arabia and Qatar, benefiting from the incentives offered by KEZAD.
A Korean food processing company is also known to be conducting a feasibility study on a potential investment in KEZAD.
Al Marzooqi said Korea's food security and mobility industries have strong growth potential through KEZAD, citing the UAE's policy priorities and Korean companies' strengths in those fields. He added that renewable energy technologies, including hydrogen and battery manufacturing, also represent important areas for future growth.
“Going forward, the success in UAE-Korea trade will be measured by an increase in trade and investment flows between the two countries,” he said. “We are looking for more Korean businesses establishing and expanding operations in the UAE to become part of Abu Dhabi’s next chapter of industrial growth and global connectivity.”