Seoul Seeks Aramco’s Help to Win Contracts of Saudi Giga Projects

Seoul Seeks Aramco’s Help to Win Contracts of Saudi Giga Projects

The signing of the agreement between the Export-Import Bank of Korea and Saudi Aramco in Seoul on Tuesday. (Yonhap News Agency)

South Korea's government intends to make its firms enter the Saudi market and win contracts to construct $500 billion worth of projects to develop smart and eco-friendly cities in NEOM, in the northwest of the Kingdom.

The Export-Import Bank of Korea has announced the signing of a $6 billion framework deal with Saudi Aramco.

This step could help South Korean companies win contracts in the Kingdom.

The bank also stated that $1 billion out of the $6 billion is set for hydrogen and renewable energy deals.

The three-year deal was signed by Eximbank Chairman Yoon Hee-Sung and Saudi Aramco Chief Financial Officer Ziad Al-Murshed in Seoul.

It comes as part of efforts to create a “second Middle East boom”.

The agreement states that Eximbank can lend up to $6 billion to Saudi Aramco which can be used to pay South Korean companies involved in projects with the global energy firm.

"The deal could give a big boost to South Korean companies in winning contracts in the Middle East," an Eximbank spokesperson said.

The agreement came amid expectations of profitable business opportunities in the Kingdom and the Middle East