The Abu Dhabi Investment Authority (ADIA) - one of the world’s top five sovereign wealth funds based in Abu Dhabi, the United Arab Emirates (UAE) with total funds up to 800 trillion won ($718.0 billion) - will be using South Korean securities companies as its new trading window. Additionally, talks are making headway for cooperation in semiconductor technology between the UAE, the world’s second largest system semiconductor manufacturer, and Korea, the world’s No. 1 producer of memory semiconductors.
The Korean government announced on Monday that it has signed a memorandum of understanding (MOU) outlining the above with a strategic planning unit within the Abu Dhabi government. More specifically, the MOU covers joint investment and mutual cooperation in finance, semiconductor, and media/contents through access to financial firms, teamwork in production and sales of system semiconductors, and joint development and assistance in the media and contents sector.
ADIA is planning to sign a contract with Korea’s National Pension Services (NPS) and Korea Investment Corporation (KIC) for joint investment and mutual assistance in global finance. The partnership between the 800 trillion won ADIA and 300 trillion won NPS will mark the birth of a powerful market maker in the global financial market. Furthermore, the joint investment deal will allow Korean companies access to the vast hoard of the Middle East’s oil money.
In the semiconductor field, Korea will be bettering its weakness in system semiconductor technology by signing an official contract outlining cooperation with Abu Dhabi by the second half of this year. The deal may also feature a joint venture in system semiconductor technology.
For media and contents, both countries will set up a joint investment fund to foster the contents industry and launch joint development projects on contents-related production technology.
[Written by Jin-myung Lee - Samji Chung / edited by Soyoung Chung]
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