The Export-Import Bank of Korea hosted the Korea Eximbank MENA* Conference 2012 for major plant project sponsors and financial institutions at the Shilla Hotel in Seoul, Korea on April 25.

Themed “Shaping the Relationship between the MENA and Korea in a New Global Context,” the conference is the first large-scale conference participated by top executives of leading companies, financial institutions, and government officials of Korea and the Middle East.

The conference was organized to strengthen networks among major Middle East sponsors and Korean firms as well as to help Korean companies expand participation in the MENA region and thus spur another “Middle East Boom.”

Representing the MENA region, 13 major project sponsors, including Saudi Electric Company (SEC), Saudi Arabian National Oil Company (Aramco), Abu Dhabi National Oil Company (ADNOC), and Qatar Petroleum (QP), as well as eight financial institutions, including Islamic Development Bank (IsDB) and Riyad Bank, attended the conference; from Korea, 30 plant construction firms and companies such as Hyundai Construction and Samsung Engineering attended. ㅡMENA Ambassadors to Korea, international law firms including Allen & Overy and Clifford Chance, and global investment banks including HSBC and BNP Paribas were also present at the conference.

The Middle East is an important market for Korea as it accounts for over 50% of Korean overseas plant orders. In addition, the Middle East is poised for a second “Middle East Boom” as record oil prices have increased the region’s funding capacity, growing industrialization has increased demand for industrial equipment and facilities, and political instability following the Jasmine Revolution has been mitigated.

In particular, the market volume for projects in the GCC Region is estimated to increase by USD 40 billion from previous year to total USD 150 billion as projects in the region diversify to sectors such as plants, medical services, nuclear power, and IT.

In light of such, the conference was focused on recent project trends in the MENA region and alternative sources of financing from export credit agencies, local financing, and project bonds amidst decreased funding from EU financial institutions.

In addition, 50 one-on-one meetings were conducted among 13 MENA sponsors and Korean firms to better assist Korean firms win contracts from the region.

Minister of Finance and Strategy Jaewan Bahk stated in his congratulatory remarks, “Korea and MENA, both possessing advanced technologies and high potential, have developed a mutually complementary and cooperative relationship. The government of Korea will actively support Korean firms by expanding financing amounts and providing policy loans so that they may effectively participate in the MENA region.”

Chairman Yong Hwan Kim of the Export-Import Bank of Korea commented in his welcoming remarks, “This conference will contribute to strengthening cooperation between Korean firms and MENA sponsors at the management level. We hope to host this conference regularly to better assist Korean firms expand their networks.”

(continued on part 2 of 2)