The Gulf Cooperation Council (GCC), comprising six member states, and South Korea finalized a free trade agreement (FTA) in Seoul, as announced by the GCC.
The GCC Secretary General, Jasem al-Budaiwi, described the deal as a monumental step towards Gulf economic integration and enhancing economic and trade ties with South Korea.
This agreement aligns with the Gulf states’ broader strategy to diversify their economies and income sources beyond oil and gas.
The FTA encompasses a wide range of areas including trade in goods and services, government procurement, cooperation in small and medium-sized enterprises (SMEs), customs procedures, and intellectual property rights.
The agreement is expected to significantly boost South Korea’s defense industry exports, particularly given the high demand for defense goods in the Middle East. Notably, Saudi Arabia and Qatar are among the top ten global arms importers.
In 2022, the GCC Secretariat assigned a chief trade negotiator and engaged in new rounds of FTA discussions with major trade partners, including China and the UK post-Brexit.
The GCC, which includes the UAE, Saudi Arabia, Qatar, Bahrain, Kuwait, and Oman, is South Korea’s fifth-largest trading partner, with the trade volume reaching $102.6 billion in 2022.
The six nations have expressed their determination to strengthen their global trade relationships with various countries and international organizations, aiming to bolster their economic foundations.
