The United Arab Emirates signed a trade agreement on Wednesday with South Korea to reduce import duties and establish stronger business ties.

“The special bond between the two leaders serves as an opportunity” to advance the countries' strategic partnership, according to a statement issued by the office of President Yoon Suk Yeol.

The Seoul summit, which included UAE President Sheikh Mohammed bin Zayed Al Nahyan, came after Yoon's state visit to Abu Dhabi last year. The discussions focused on energy and defence, with South Korea aiming to leverage the investment opportunities offered by the energy-abundant Gulf state.

Yoon's office announced that the UAE reiterated its commitment to last year's promise of investing $30 billion in South Korean businesses, covering sectors such as nuclear power, defence, hydrogen, and solar energy, Reuters reports.

The Abu Dhabi National Oil Company signed a letter of intent with Hanwha Ocean and Samsung Heavy Industries for the construction of at least six LNG carriers, valued at approximately $1.5 billion, the office stated.

South Korea announced that industry ministers have formally signed a Comprehensive Economic Partnership Agreement (CEPA), initially agreed upon in October. This agreement, once ratified, will eliminate all tariffs on South Korean arms exports.

Additionally, the UAE will phase out import duties on automobiles over the next decade, while South Korea will eliminate tariffs on crude oil imports.

Eventually, the agreement will remove tariffs on more than 90% of imports between the two nations.

“South Korea's crude oil imports from the UAE are expected to increase,” Seoul's Minister of Trade Cheong In-kyo said during a press conference, highlighting the country's reliance on energy imports.

Furthermore, Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi stated that the UAE is anticipated to sign a CEPA with Malaysia, Vietnam, and the Philippines in the coming months.