Two prominent South Korean construction companies have successfully obtained contracts worth a total of $7.22 billion from Saudi Aramco, the national petroleum and natural gas company of the Kingdom of Saudi Arabia. This deal was proudly announced by the South Korean presidential office.
These contracts are seen as the fruits of stronger diplomatic relations between South Korea and Saudi Arabia, which have been nurtured through recent high-level meetings. Notably, a bilateral summit in 2022 between South Korean President Yoon Suk Yeol and Saudi Crown Prince Mohammed bin Salman Al Saud in Korea laid the foundation for strategic partnerships across defense, energy, and infrastructure sectors.
Further deepening these ties, President Yoon’s visit to Riyadh in October 2023 reinforced the commitment to collaborate on Saudi Arabia’s ambitious Vision 2030, which encompasses a spectrum of infrastructure and tourism projects, including the development of the NEOM mega-city.
GS Engineering & Construction (GS E&C) has been entrusted with a $1.22 billion project to construct hazardous waste treatment facilities within the Fadhili industrial complex, located near Jubail in Saudi Arabia’s eastern province. Specific to GS E&C’s scope is the development of three sulfur recovery units, with each possessing the capacity to handle 800 tons of sulfur daily. GS E&C’s responsibilities will span from the initial design to procurement, building, and even providing support during the commissioning phase.
Meanwhile, Samsung E&A has been awarded a $6 billion contract, its largest to date, to enhance the gas treatment facilities and other utilities at the same complex. This expansion will significantly boost the complex’s gas processing capability, from the current 2.5 billion cubic feet per day to 3.8 billion cubic feet. This contract represents a milestone for both Samsung’s construction division and for all Korean construction entities in terms of the scale of deals with Saudi Arabia.
According to the presidential office, these projects are record-breaking for Korean firms in Saudi Arabia and rank as the third-largest international construction venture, following the Barakah Nuclear Power Plant in the UAE and the New Basra City in Iraq.
The total value of overseas construction projects clinched by Korean companies from January to April has now soared to $12.72 billion, a figure more than double that of the same period in the previous year, which stood at $6.11 billion.
The ceremonial signing, which took place in Dhahran, Saudi Arabia, saw the attendance of key executives from GS E&C, Samsung E&A, and officials from Saudi Aramco, symbolizing the partnership’s strength. Following the announcement of the deal, the share prices of the two Korean companies experienced a notable increase, with Samsung E&A and GS E&C stocks rising 2.64 percent and 4.34 percent, respectively.