Shorooq Partners Signs 2 MOUs during Korean President’s Visit to UAE
At the invitation of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, South Korean President Yoon Suk Yeol paid a state visit to the UAE from 14th to 17th of January 2023. President Yoon was accompanied by a business delegation group representing about 100 companies from Korea, including executives from Korea’s top business groups as well as from small and medium-sized companies.
During the four-day diplomatic trip to the UAE which marked President Yoon’s first overseas trip this year, Yoon made several planned visits as part of his itinerary, such as to the Barakah nuclear power plant in Abu Dhabi, Seoul’s first atomic reactors abroad, the Wahat Al Karama war memorial, the Sheikh Zayed Grand Mosque and the Akh Unit, South Korea’s Special Warfare Unit in the UAE.
In particular, Yoon held a bilateral summit with the UAE President at Qasr Al Watan on Jan 15th and attended the UAE-Korea Business Forum held in Abu Dhabi on Jan 16th. The two countries signed a total of 48 memoranda of understanding (MOUs) and agreements during Yoon’s visit, including 13 signed at the summit in the presence of the two presidents and 24 signed at the Business Forum, according to the Korean presidential office.
Bilateral summit between President Yoon and President HH Mohamed bin Zayed Al Nahyan on Sunday. [Photo by Lee Seung-hwan]
UAE and Korea Agree on Stronger Strategic Cooperation
As the two leaders discussed multiple paths of bilateral cooperation and development at the summit meeting, President Yoon expressed hopes for these cooperation agreements to serve as a starting point for advancing the strategic partnership to the highest level, while President Mohammed responded that the UAE is prepared to enhance cooperation with Korea in every field.
In a joint statement between the UAE and Korea, UAE announced its commitment for sovereign investment entities to invest $30 billion in Korea. The two leaders agreed to strengthen strategic cooperation in 4 key areas – peaceful use of nuclear energy, conventional & clean energy, economy & investment, and arms & defense; as well as in future areas of importance including technological innovation & digital transformation, health & medical care, space, cultural exchange, smart infrastructure and climate change.
Both sides also agreed to boost cooperation in nurturing SMEs and startups through a memorandum of understanding signed by the UAE Ministry of Economy and the Korean Ministry of SMEs and Startups. This agreement focuses on Korea’s role as a major partner in UAE’s Entrepreneurial Nation 2.0 Project to expand trade and mutual investment between SMEs and startups in both countries. The state-led project seeks to develop 8,000 SMEs and 20 unicorns by 2030 with programs supporting entrepreneurship for local and foreign companies.
Other agreements included an MoU in hydrogen energy use in cities, its production, transmission and storage between the UAE Ministry of Energy and Infrastructure and the Korean Ministry of Land, Infrastructure and Transport, as well as another MOU on cooperation in water resources with the Korean Ministry of Environment. There was also an MoU between the Mubadala Investment Company and the Korea Development on sovereign investment partnership and another MoU on financial cooperation between TAQA (Abu Dhabi National Energy Company) and the Export-Import Bank of Korea.
Agreements may be non-binding in nature but as President Yoon emphasized, “The UAE is preparing for the post-oil era, while Korea has innovative ideas and technological prowess. Korea and UAE are optimal partners for cooperation.” Bilateral relations have largely been centered on energy, construction, and infrastructure in the past, but the signing of various agreements spanning across a diverse scope of industries is an important step forward. Both countries are ready to build upon what has already been accomplished and further develop the Special Strategic Partnership together.
Shorooq Partners at UAE-Korea Business Forum
The UAE-Korea Business Forum, attended by more than 300 government officials and business representatives from both countries, including President Yoon, witnessed the signing of 23 MOUs and 1 contract with a combined value of ~$6.1 billion – 6 MOUs were signed in the energy sector, 8 in emerging industries, 3 in arms & defense, 3 in smart farms and 4 in other areas. Shorooq Partners also attend the forum and has signed 2 MOUs with Korean companies.
Shorooq Partners signed an MOU with Megazone Cloud Corporation to explore cloud business opportunities and support digital transformation within the Middle East. Headquartered in Seoul, Megazone Cloud is a leading cloud managed service provider (MSP) and a cloud innovator in Asia, enabling digital transformation services to B2B customers using cloud-optimized technology. Through this partnership, Shorooq Partners will help Megazone Cloud expand and introduce its integrated digital services to the Gulf region and beyond.
Another MOU was signed between Shorooq Partners and N15 Partners, a leading startup accelerator in Korea, to cooperate and develop an effective ecosystem for East Asian and Middle Eastern startups. With a mutual agreement to facilitate startup incubating hubs in Korea and the UAE to seek new business opportunities as well as to connect the two regions, Shorooq Partners is proud to work with N15 to facilitate Korean startups’ expansion into the Middle East.
As the leading early-stage investment company, Shorooq Partners is passionate about empowering startups and fueling their growths and contribution to the economic development of the MENAP region, as well as introducing the region to global markets and players. While we remain humble and dedicated to our mission of being the most preeminent investment firm in the region, the two signings hold significance as they solidify our position as the favored partner by Korean startups for expansion into the Middle East. We are proud and honored to fulfill this special role of connecting the Eastern and Middle Eastern startups with each other and will continue to serve as the bridge.
Korean President Yoon’s four-day trip to the UAE has been pivotal in showcasing investment and cooperation opportunities for many firms, paving the way for further cooperation and mutual trust. Please see below for a full list of 24 MOUs and contract signed at the Business Forum. The UAE and South Korea have secured solid and strong relations in many fields –
Today, Shorooq Partners is excited to share our MOUs and looks forward to staking a bigger claim in the Korean VC market. Our cofounder Shane Shin believes his commitment to not only the MENAP region but also Korea helps him seek authentic, meaningful connections with founders from both regions. It has only been seven years since Shane moved to the UAE from San Francisco, and six years since Mahmoud and Shane cofounded Shorooq Partners. Better than anyone, Shorooq Partners understands the challenges of starting a business and recognizes the setbacks Korean startups face when expanding into the Middle East. Reach out to us today. Let us help you push for new frontiers.
