Report

Institute for Future Strategy, Seoul National University — Economic Security Cluster
Qualitative Analysis Team Report (12 Countries)
United Arab Emirates’ Economic Security

The Economic Security Cluster at the Institute for Future Strategy (IFS), Seoul National University organized a research team of current and former officials from the Ministry of Foreign Affairs to assess and summarize the economic security conditions of twelve key countries with close ties to Korea.

This report analyses the case of the United Arab Emirates (UAE), a country that has strengthened its economic security through remarkable political stability and a robust diversification strategy amid regional geopolitical instability. Since its founding in 1971, the UAE has achieved what is often described as a “miracle in the desert,” underpinned by strong leadership and long-term national development strategies. This success has stemmed from the effective combination of several key elements: oil- and gas-based capital accumulation, strategic geographical location, open and innovative policies, and an extensive foreign labour force.

Given the growing uncertainty of the global environment, the UAE represents a valuable economic security partner for South Korea—sharing a similar geopolitical context, advocating multilateralism and free trade as a middle power, and possessing a complementary economic structure with strong potential for cooperation in science and technology. The UAE has especially high potential for collaboration with Korea in key sectors such as energy, nuclear power, defence, and high-tech industries. Through its national strategy “Project of the 50”, the UAE has identified post-oil industrial diversification, carbon neutrality by 2050, the hydrogen economy, and digital innovation as central pillars of its long-term development vision, while reinforcing its international leadership in climate change initiatives.

The SWOT analysis identifies:

• Strengths: Political stability, efficient capital management through sovereign wealth funds, and an open, inclusive social environment.

• Weaknesses: Population imbalance, heavy reliance on monarchical leadership, and widening political and economic disparities among emirates.

• Opportunities: Industrial diversification, energy transition and climate leadership, strengthened status as a global hub, and the expansion of healthcare and cultural industries.

• Threats: Security risks from Iran, intensifying U.S.–China strategic rivalry, and growing competition and friction with Saudi Arabia.

Based on this analysis, the report proposes key directions for Korea–UAE economic security cooperation:

1. Pursue successful completion and follow-up collaboration on the Barakah Nuclear Power Plant Project, including joint ventures in third countries.

2. Expand cooperation in defence, advanced technologies, and energy sectors.

3. Promote joint investment using sovereign wealth funds.

4. Deepen educational and cultural content exchange.

5. Strengthen collaboration in healthcare, biotechnology, and smart agriculture technologies.
   
   

Keywords:
United Arab Emirates, economic security, energy transition, industrial diversification, sovereign wealth fund, nuclear cooperation, defence cooperation, hydrogen economy, carbon neutrality, Project of the 50