Korea-Saudi Arabia Summit Bears Fruit :

$7.2 Billion Infrastructure Construction Project

- Korean companies have clinched contracts for the Fadhili Gas Increment Program, Korea’s largest order ever from Saudi Arabia.

- Korea is on track to achieve $40 billion in overseas construction, doubling the value of orders received year-on-year.

Korea’s Samsung E&A Co. and GS E&C Corp. have won a $7.2 billion contract to expand the Fadhili Gas Increment Program from Aramco, Saudi Arabia’s state-run oil company, on April 2. The project will be carried out near Jubail in eastern Saudi Arabia.

Securing these contracts holds significant importance for Korea for several reasons:

▲ It is the outcome of the summit diplomacy championed by President Yoon Suk Yeol, who has emphasized “economic diplomacy.”

- The Republic of Korea and the Kingdom of Saudi Arabia agreed to strengthen construction and infrastructure cooperation in a joint statement released during President Yoon’s state visit to Saudi Arabia in October 2023.

▲ This is the largest order Korean companies have ever received from Saudi Arabia and the third-largest overseas construction order ever secured by Korean businesses.

- Before this deal, the largest order won by a Korean company in Saudi Arabia was the Amiral Project worth $5 billion, or 6.7 trillion won, in June last year.

- To date, the largest and second largest overseas construction deals secured by Korean companies are the $19.1 billion order for the Barakah Nuclear Power Plant awarded by the United Arab Emirates in 2009 and the $7.7 billion order for Bismayah New City received from Iraq in 2012.

▲ This deal assures that Korea is on track to achieve its goal of $40 billion in overseas construction orders for this year.

- With this deal, overseas construction orders won by Korean businesses have reached $12.72 billion, as of April 2, more than double the $6.11 billion secured over the same period last year.