Abu Dhabi is studying the establishment of a Korean industrial zone that could bring more than 25 factories to the emirate in its first phase, marking another step in the UAE’s push to attract advanced manufacturing investment. The proposal follows a strategic partnership between UAE-based AG Company and South Korea’s Akbar Investment Company.
The planned zone would be dedicated to Korean industries and is expected to attract investments exceeding $1 billion. The project remains at the study stage, meaning the final structure, investment timeline, and tenant mix have not yet been publicly confirmed.
The announcement came during a visit to Abu Dhabi by a high-level Korean delegation that included representatives from government and semi-government entities, investors, and business figures. The delegation was led by Jung Min Kim, a member of South Korea’s National Assembly and its Committee on Trade, Industry, Energy, SMEs and Startups.
Fifteen MoUs Signal Early Manufacturer Interest
The UAE–Korea agreement was accompanied by the signing of 15 memoranda of understanding with Korean companies and manufacturers across several industrial sectors. The number of MoUs points to a broader industrial push, with the proposed zone being positioned as more than a single-company investment vehicle.
A Korean industrial cluster in Abu Dhabi would fit the emirate’s broader strategy of using industrial zones, logistics infrastructure, and foreign investment incentives to build local manufacturing capacity. During the delegation’s visit, meetings were held with the Abu Dhabi Investment Office and Khalifa Economic Zones Abu Dhabi, known as KEZAD, to review the emirate’s investment environment and industrial infrastructure.
KEZAD is one of Abu Dhabi’s main industrial and logistics platforms. AD Ports Group describes KEZAD Group as the UAE’s largest provider and operator of fully integrated economic cities, free zones, business services, staff accommodation, and industrial real estate solutions. Its zones are spread across Abu Dhabi, Al Ain, and Al Dhafra, supporting manufacturing, logistics, and trade-linked investment.
Al Ain Emerges as Proposed Location
Al Ain City has been nominated as the proposed location for the Korean industrial zone, according to Safwan Bals, board advisor of AG Company. He said the choice reflected the UAE’s aim to broaden economic development beyond established industrial centers and create a more balanced distribution of investment opportunities.
That location would give the project a regional development angle as well as an industrial one. If the zone moves ahead, it could bring direct and indirect employment opportunities to Al Ain while supporting Abu Dhabi’s effort to diversify production hubs across the emirate.
AG Company chief executive Dr. Ahmed Abdullah framed the project as part of the UAE’s wider ambition to build a more diversified and competitive economy based on knowledge, innovation, and advanced technologies. He emphasized that attracting Korean industries would support expertise transfer, national skills development, and the UAE’s position as a regional and global center for industry and innovation.
UAE–Korea Trade Ties Provide the Backdrop
The proposed industrial zone comes as UAE–South Korea economic relations move into a new phase. The UAE–Korea Comprehensive Economic Partnership Agreement was signed on May 29, 2024, and entered into force on May 1, 2026.
The agreement aims to deepen trade, investment, and economic cooperation between the two countries. It will remove tariffs on more than 90 percent of goods trade over a period of up to 10 years, lowering costs for importers and exporters and widening market access for producers in both economies.
A 2024 joint statement from South Korea’s Ministry of Foreign Affairs also emphasized that the UAE–Korea CEPA was expected to strengthen East-West supply chains, support two-way foreign direct investment, and expand cooperation in areas including energy, advanced manufacturing, technology, food security, and healthcare.
The proposed scale gives the project strategic weight. A $1 billion industrial zone with more than 25 factories would represent a sizable addition to Abu Dhabi’s manufacturing pipeline, particularly if it brings Korean expertise in high-value sectors such as technology, healthcare, artificial intelligence, advanced materials, or precision manufacturing.
Abu Dhabi has spent years building the infrastructure needed to attract global manufacturers. The Korean industrial zone proposal now tests whether that platform can convert bilateral trade momentum into factory-level investment, supply-chain localization, and new production capacity inside the UAE.
