Abu Dhabi Islamic Bank (ADIB) and Construction Guarantee of the Republic of Korea have signed a MOU that will support South Korean construction companies operating in the Arabian Gulf, a region experiencing a surge in large-scale infrastructure projects.
Under this MOU, ADIB and Construction Guarantee of the Republic of Korea will cooperate in communicating with contractors about the business opportunities in the Arabian Gulf, and provide information on the operating environment and support their business needs for their awarded jobs/contracts.
The agreement was signed by Mr Tirad Al-Mahmoud, CEO of ADIB, and Mr Wan-Dae Jung, Chairman and President of Construction Guarantee, in the presence of the Ambassador of the Republic of Korea to the UAE, and senior executives from ADIB and CG.
“With this MOU, we are helping to support some of the world’s most experienced and technically advanced contractors expand in the region, which should ultimately support job creation, and transfer of skills,” said ADIB’s Global Head of Wholesale Banking Business, Arif Usmani.
“Economic diversification policies are playing an important role, and strong investment in hard infrastructure, and areas such as health and education, is producing very interesting opportunities for corporate expansion. Banks need to step up to support this growth,” he added.
Wan-Dae Jung, Chairman and President of CG, said: "The Middle East is considered one of the three largest markets in the world, and Korean construction firms collectively hold the largest market share in this region; carrying out numerous mega scale projects in the UAE, most notable of which includes the nuclear power plant program in Braka and the project to expand oil refineries in Ruwais. Through the new strategic partnership with ADIB, the leader of Islamic financing in the Middle East, we aim to develop our financial support to Korean constructors in this region as they further contribute to the overall development of the Middle East.”
The Arabian Gulf has emerged as a key market for Korean contractors. Over the last decade more than $800 billion worth of projects have been awarded in the region, while around $1 trillion worth of schemes are currently in the tendering or planning stages, according to MEED.
CG was established in 1963 to support a major framework of contractor required banking products. It provides the crucial credit and financing services needed by the Korean contractors such as guarantees and loans. At present, it has 10,850 members.