Gov’t to announce tangible Saudi projects before year’s end
The government will announce up to 10 trillion won ($7.3 billion) in construction projects in Saudi Arabia, in the latest development in a series of government-level initiatives to solidify mega business deals, Land Minister Won Hee-ryong said Monday.
The Korea-Saudi joint projects will be expanded to encompass culture, defense, energy and infrastructure building, in what he said was a highly tangible vision underpinned by decades of trust established between the two countries over the past decade.
The failures and poorer-than-expected performances of local construction firms in the oil-rich Middle Eastern country under previous administrations will not be repeated this time, a lesson to maintain stronger bilateral ties over the long term.
“A number of projects amounting to some trillions of won will be announced before the end of the year,” Minister of Land, Infrastructure and Transport Won Hee-ryong said during a meeting with a group of reporters at the Government Complex Sejong, Monday.
The remarks are the direct reference to the recent 26 memoranda of understanding (MOUs) signed with Korea’s trade and business authorities as well as key local manufacturing affiliates of the country’s largest conglomerates, Nov. 17 in Seoul. Saudi Arabian Prime Minister and Crown Prince Mohammed bin Salman came to Korea.
“My recent visit to Saudi Arabia was a valuable opportunity for me to appreciate strong bilateral ties and possibilities for further cooperation, as reaffirmed by the country’s sovereign wealth fund and the royal class in the country,” he added. “Some major projects are being withheld from public announcement because the Saudi authorities have yet to give the final go-ahead for public release, but we are on good authority that the project amount total will be at least some trillion won.”
The country’s defense minister, the brother of the crown prince, had in-depth knowledge about the advanced defense system, an area the Middle Eastern country views as the basis of major joint cooperation alongside nuclear energy construction projects, culture, entertainment, sports and tourism, he added.
“The Saudi energy authorities will announce developments in the letter of intent to designate the country’s nuclear business partner in December, with Korea’s peers in France, China and Russia in fierce competition. A positive development will follow, not only in the defense industry but to broader areas, as indicated by the Saudi energy authorities’ amicable stances,” Won said.
The country’s mega city-building project in Neom will feature key cultural components to which Korea can contribute, with the assistance of SM Entertainment, a local entertainment agency, he said.
“The Saudi crown prince is not only interested in Korea’s culture and entertainment under the broader policy goal of a sustainable future. Korea will be able to provide key knowledge and know-how to elevate the cultural profile of Saudi Arabia,” Won said.