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Follow-Up on Government's Financial Support Measures for Middle East Cooperation
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The Export-Import Bank of Korea will provide a total of USD 1.2 billion in financial support to Saudi Electricity Company. The purpose is to expand the participation of Korean companies in Saudi power infrastructure projects and to facilitate the joint overseas expansion of Korean small and medium-sized equipment suppliers.
The Export-Import Bank of Korea announced on August 19 that it will support Saudi Electricity Company with a total of USD 1.2 billion. This funding follows up on the government's "Financial Support Measures to Strengthen Cooperation with the Middle East," which was announced at the external economic ministers' meeting in May. The government decided to provide integrated order support and upfront financing to major Middle Eastern project owners and to create a Middle East infrastructure strategic fund.
Saudi Electricity Company is pursuing large-scale investments to meet growing electricity demand, expand and modernize transmission and distribution networks, and achieve its energy transition goals. The funds provided by the Export-Import Bank of Korea will be used for project orders and payment settlements with Korean companies.
The impact of this financial support is expected to also benefit Korean small and medium-sized enterprises. In large-scale infrastructure projects such as power generation and transmission, even when major domestic conglomerates are the main contractors, a significant portion of power equipment and parts is supplied by small and medium-sized companies. As Saudi Electricity Company’s order projects accelerate, these firms are expected to see more export opportunities to the Middle East.
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On this occasion, the Export-Import Bank of Korea also plans to host a "vendor fair" by inviting Saudi Electricity Company’s procurement officers to Korea to connect with local equipment suppliers. An official from the Export-Import Bank of Korea stated, "We hope this support will strengthen economic cooperation with Saudi Arabia and broaden opportunities for Korean companies to participate in local power projects. We also expect it will help expand Korean companies' presence in the Middle Eastern construction and plant markets."
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