South Korea and Saudi Arabia signed agreements worth up to 100 trillion won ($74 billion) for joint economic cooperation in key industries, including manufacturing, smart technology, bio and healthcare, urban planning, infrastructure development, energy, Agriculture, environment, and gaming.
At the heart of the joint economic relationship is the $500 billion (662 trillion won) phase five construction project of Neom, a new smart city under construction in Tabuk province. The Green City project, led by Saudi Arabia’s Prime Minister Crown Prince Mohammed bin Salman, aims to transition from an economy currently dependent on fossil fuels to a sustainable, eco-friendly future.
Around 200 local industry leaders and 60 Saudi businesses, investment authorities, and trade officials participated in the Korea-Saudi Investment Forum organized by the ministry. They signed 26 Memoranda of Understanding (MoUs) during the seven-hour event.
In MoUs, the Korea Electric Power Corp (KEPCO) as well as steelmaker POSCO and Samsung C&T, the construction and engineering affiliate of Samsung Group to build a green hydrogen and ammonia plant in Neom.
The agreement is for a total of $6.5 billion to build a 396,694-square-meter plant near Yanbu, a western port city on Saudi Arabia’s Red Sea coast, by 2029, and operate it for 20 years thereafter. the Samsung affiliate signed a separate MOU with PIF to advance cooperation in the modular business.