UAE and Korea to enhance mutual collaboration in trade and business

The Dubai Multi Commodities Centre (DMCC), the world’s flagship freezone and Government of Dubai Authority on commodities trade and enterprise, has announced membership growth in companies from the Republic of Korea of over 20 per cent in the year to date.

The announcement came following a successful visit to the capital, Seoul, as part of DMCC’s Made for Trade Live global trade roadshow where it highlighted the advantages of doing business in Dubai. The DMCC also held high-level meetings with tech giants Kakao and Naver to explore mutual collaboration.

The development came after DMCC intensified its focus in the Republic of Korea for 2023, with dedicated roadshows to Seoul and Gyeonggi and strategic partnerships with key regional players, including the Korea Blockchain Industry Promotion Association (KBIPA) and Seongnam City, to advance the global Web3 industry. A further high-level agreement was announced in February 2024 between DMCC and the Korea Institute of Startup and Entrepreneurship Development (KISED) to drive global start-up growth.

The latest visit to Seoul sought to build new trade and business ties following the significant expansion of diplomatic and economic relations between the UAE and the Republic of Korea in recent years. In late 2023, a historic Korea-Gulf Cooperation Council Free Trade Agreement was signed. In the same year, the UAE and the Republic of Korea formalised a Comprehensive Economic Partnership Agreement (CEPA). Once the CEPA comes into force, it is estimated that it will eliminate 90 percent of tariffs between the two countries, creating a vibrant new trade corridor.

In addition, DMCC views the Republic of Korea as a strategic market given the nation’s advanced technology industry and the fact that, with 94 members from the Republic of Korea, the Centre is home to approximately half of the estimated Korean business presence in the UAE.

A total of 130 Korean business executives were briefed on the Dubai opportunity. Dubai’s ease of doing business and streamlined access to some of the world’s fastest-growing markets present a substantial opportunity for Korean companies to expand through Dubai and DMCC.

Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, said, “At almost 100 members from the Republic of Korea today, DMCC represents roughly half the South Korean business presence in the UAE. This is reflective of our strategic focus to grow our business connections across the South Korean market and further trade and investment. As the Republic of Korea and the UAE build ever closer ties, we know that through our premium infrastructure, industry partnerships, and ecosystems, we can play an integral role in attracting the next wave of South Korean companies to Dubai across Web3, crypto, gaming energy, and more.”

DMCC’s Made for Trade Live roadshows play a pivotal role in spotlighting Dubai as a premier business destination. Throughout the series, DMCC emphasises Dubai’s distinctive value proposition in attracting foreign direct investment (FDI) to the emirate. Notably, DMCC contributes 11 percent to Dubai’s annual FDI inflows, and in 2023, the free zone achieved its second-best year on record, welcoming nearly 2,700 new companies to the district. DMCC is home to over 24,000 businesses from around the globe.

Meanwhile DMCC – the world’s flagship free zone and Government of Dubai Authority on commodities trade and enterprise – successfully concluded its first Made for Trade Live roadshow in Japan, which focused on Web3, gaming and AI to further complement the thriving tech ecosystem within DMCC.

The event in Tokyo builds on the growing bilateral trade and investment relations between the UAE and Japan. DMCC is home to 83 Japanese companies, constituting over 24 per cent of Japanese firms that are set up in the country, and sees further opportunities for Japanese businesses to accelerate their growth through Dubai.

The event saw DMCC executives brief Japanese business leaders within the Web3, AI and gaming industries, including Cygames, Next Ninja and Square Enix, on the opportunities in expanding with DMCC given the ability of the district to connect them to some of the world’s fastest-growing markets via Dubai.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said: “With over 80 Japanese companies in our district, DMCC is home to almost 25 per cent of the entire Japanese business presence in the UAE – and we believe there is plenty of untapped potential in the market.

Through our enhanced value proposition, dedicated tech ecosystems and new infrastructure, including an upcoming DMCC AI Centre, there are significant opportunities to grow this number in strategic areas of shared interest like Web3, crypto, gaming and AI. What we have seen today reinforces the appetite to enhance business connections between our regions and we look forward to welcoming more Japanese companies and partners to Dubai.”