South Korean President Lee Jae Myung and UAE President Sheikh Mohamed bin Zayed Al Nahyan have formalized a sweeping series of agreements, projected to generate $35 billion in economic benefits across defense and artificial intelligence sectors. Seven Memorandums of Understanding (MoUs) were signed during a bilateral summit in Abu Dhabi on November 18th, signaling a strategic shift in the Korea-UAE relationship.
Beyond Traditional Ties
For decades, the partnership between South Korea and the UAE centered on energy, construction, and nuclear power. Now, the focus is expanding rapidly into high-tech industries. The agreements cover strategic AI collaboration, space cooperation, next-generation nuclear technologies, implementation of the 2024 Comprehensive Economic Partnership Agreement (effective by 2025), biohealth, intellectual property, and advanced nuclear power technology.
AI Infrastructure: Stargate UAE
A key component of this collaboration is South Korea’s participation in the Stargate UAE project. This initiative will establish a massive AI data campus in Abu Dhabi with a one-gigawatt capacity. Initial investments are estimated to exceed $26.5 billion, making it the first Stargate implementation outside the United States. The framework allows for joint AI investment, expanded supply chains, and co-development of hyperscale AI data centers.
Defense and Nuclear Cooperation
The deals include over $15 billion in potential defense export contracts through joint development, local production, and weapons systems exports to third countries. In nuclear energy, the two nations will collaborate on small modular reactors and integrate AI into existing nuclear facilities, building on the success of the Barakah nuclear power plant (completed by a Korean consortium in 2024 after a $20 billion contract win in 2009).
A Broader Strategic Shift
This summit highlights a broader trend in the region: the UAE is diversifying its partnerships beyond traditional Western allies. South Korea, meanwhile, is actively strengthening its economic and technological footholds in Middle Eastern markets, especially after securing significant deals in Saudi Arabia.
Historical Context
Diplomatic relations between South Korea and the UAE were established in 1980, with ties upgrading to a “special strategic partnership” in 2018. This visit by President Lee marks only the second presidential trip to the UAE, following President Yoon Suk Yeol’s visit in 2023. Previous collaborations include military training programs and space cooperation (Etihad-SAT Radar Satellite developed with Korea’s Satrec Initiative, expected in 2025).
These agreements represent a deepening economic and technological alliance, positioning both nations for increased influence in a rapidly evolving geopolitical landscape.
