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K-SURE Commits $1.3 Billion to Saudi Petrochemical Project

The Korea Trade Insurance Corporation (K-SURE) has committed a substantial amount of US$1.3 billion in long-term export financing to the Saudi Arabian Amiral petrochemical project.

This project, a collaboration between Saudi Aramco and France’s Total, aims to establish a cutting-edge petrochemical plant in Jubail Industrial City, situated in the Persian Gulf region. With an estimated total project cost of around US$148 billion, this venture signifies a major investment in the industrial infrastructure of the area.

Hyundai Engineering & Construction has secured a significant contract valued at US$51 billion to construct ethylene production facilities and utility infrastructure as part of the Amiral project. This contract stands as the largest amount secured by a Korean company in Saudi Arabia as of 2023, underscoring the competitive advantage and engineering capabilities of South Korean firms on the global stage.

K-SURE played a pivotal role in facilitating this achievement. Since the early stages of the Amiral project, the corporation has actively expressed its commitment to provide financial assistance to Aramco, submitting letters of intent. This proactive stance has enabled Korean construction and equipment companies to secure crucial engineering, procurement, and construction (EPC) contracts.

In the previous October, K-SURE entered into a US$30 billion export financing agreement with Aramco, aimed at supporting Korean companies’ entry into the Saudi market. This agreement underscores the strategic significance of Saudi Arabia for South Korean businesses, particularly within the framework of the kingdom’s ambitious Vision 2030 initiative.

Under the leadership of Crown Prince and Prime Minister Mohammed bin Salman, Saudi Arabia is undergoing a profound economic transformation. The Vision 2030 initiative aims to diversify the country’s economy through energy diversification and manufacturing expansion. By 2035, Saudi Arabia plans to increase the number of factories from 10,000 to 36,000 and make substantial investments in infrastructure projects like the Neom new city development project.

Jang Young-jin, president of K-SURE, highlighted the promising prospects in Saudi Arabia, stating, “Saudi Arabia is a market expected to issue various project orders in fields such as energy transition and urban development. We will continue our financial support efforts to help Korean companies achieve more contract successes in Saudi Arabia.”

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