Dubai-based Jebel Ali Free Zone (Jafza) is partnering with the Small & Medium Business Corporation (SBC) of South Korea to support investment opportunities and industrial cooperation for small businesses.

SBC is a non-profit Korean government agency that operates and manages funds for the promotion and growth of small and medium enterprises (SMEs), focussed on helping high potential businesses and early-stage start-ups with technology but with little access to the private financial backing. It also supports strategic industries that lead to an increase in production and employment.

SBC's current portfolio includes 22 business incubators in 13 countries, providing assistance to SMEs to enable their entry into global markets.

The two organisations have agreed to work together to support SME business development programmes and to foster closer trade ties between the two countries, said a statement.

As part of a memorandum of Understanding (MoU), Jafza and SBC will exchange information on investment between industries in both countries in an effort to attract and assist more South Korean SMEs to set up in the UAE, it said.

The agreement was signed by Mohammed Al Muallem, CEO and managing director of DP World UAE Region, and CEO of Jebel Ali Free Zone; and Lee, Sang-Jik, president of Small & Medium Business Corporation.   

As part of the agreement, Jafza’s role extends beyond free zone facilities to helping investors identify potential business partners, nurture technology transfer, joint ventures and strategic alliances, it added.

Sultan Ahmed Bin Sulayem, group chairman and chief executive officer, DP World, said: “The signing of this agreement marks the next step in the evolution of trade ties between the UAE and the Republic of Korea, as well as Jafza’s own plans to encourage trading businesses to establish their operations here.”

“As a global trade enabler, we recognise the importance of our two countries in the global supply chain and are keen to foster stronger, mutually beneficial ties,” he said.

“Jafza has already established itself as a preferred regional destination for large Korean companies and we want to build on this by encouraging the growth and development of small and medium businesses. We’re keen to provide our support services for South Korean SMEs that are eyeing the Middle East for business opportunities,” he added.

Trade between the two countries reached was $5.435 billion (Dh19.963 billion) in 2016. Jafza accounted for 47.48 per cent which was $2.581 billion (Dh9.48 billion), said a statement.

Jafza been an attractive hub for larger South Korean companies looking to establish offices in the Middle East and North Africa (Mena) region, especially in the automotive, electronics and chemicals sectors. 58 major South Korean companies have regional offices in the free zone including Fortune 500 firms such as Samsung, Hyundai, and LG, it stated. – TradeArabia News Service