Signing Business Agreements with Dubai Science Park and Local Certification Bodies RACS and GulfTIC
Korea Testing Certification institute (KTC) announced the establishment of its branch in Dubai, United Arab Emirates (UAE), to expand export support for domestic companies in the Middle East region. KTC also signed business agreements with local certification bodies to enhance collaboration in certification and testing services.
The opening ceremony, held on May 15th at Dubai Science Park Free Zone, was attended by prominent figures from both countries, including Marwan Abdulaziz Janahi, the Managing Director of Dubai Science Park, and Hamad Al Zarooni, a Senior Business Development Manager of UAE Dubai Science Park. The event was further highlighted by the presence of Yoo Jehseung, Ambassador of the Republic of Korea to the UAE, Moon Byung-jun, the Consul General of the Republic of Korea in Dubai, and Sungil Ahn, the President of KTC, representing key stakeholders in the industries of both nations. Additionally, during the opening ceremony, KTC became the first domestic certification body to sign a business agreement with "DSP Free Zone*," a zone within Dubai Science Park dedicated to supporting companies' export activities.
*Dubai Science Park Free Zone: An economic free zone focused on industrial diversification and technological development within the UAE, unlike other free zones such as Jebel Ali Free Zone for logistics and trade and DMCC Free Zone for commodities trading, including gold and diamonds.
Furthermore, on the 16th, KTC strengthened its export support for domestic companies by signing business agreements with two influential local certification bodies, Regulatory Authority for Communications and Service (RACS), and Gulf Technical Inspection and Certification (GulfTIC). These organizations are responsible for conducting most certifications within the UAE, including Emirates Conformity Assessment Scheme (ECAS) and Emirates Quality Mark (EQM).
As the first certification body designated for Gulf Cooperation Council (GCC) certification in South Korea in 2016, KTC has been recognized as a leading certification authority for the Middle East. Through this agreement, KTC will be able to provide various certification services within the UAE, including not only electrical products but also machinery, construction, cosmetics, and halal certifications. This means that in addition to existing GCC and Saudi SASO certifications, companies can now obtain ECAS and EQM certifications, enabling them to benefit from a comprehensive "Middle East Integrated Certification Solution" with a single application.
As of 2022, South Korea's exports to the Middle East (GCC) amounted to $10.26 billion, showing an 18.7% increase compared to 2021. South Korea's exports to the UAE reached $3.97 billion in 2021, representing a growth rate of 8.7% compared to the previous year. Since the infrastructure boom in the 1970s, Middle Eastern countries have been diversifying their industries, and the UAE, in particular, has announced its vision to move beyond the petroleum and gas industries by introducing industrial diversification policies and plans to expand the adoption of renewable energy, such as solar energy, and electric vehicle chargers as part of its ten-year industrial development strategy, "Operation 300bn*."
*UAE Industrial Strategy ("Operation 300bn"): A strategy announced in 2021, with the core goal of achieving a manufacturing sector GDP of $81.7 billion by 2031. It aims to enhance productivity, create jobs, improve national capabilities, and enhance the country's competitiveness.
The major obstacles faced by domestic companies in exporting to the Middle East have been identified as the lack of information on technical regulations and certifications, lengthy certification acquisition processes, and challenges in addressing local issues after certification. As Middle Eastern GCC countries rapidly introduce new technical regulations and align them with domestic industrial diversification policies and protectionist measures, they have become trade barriers for our export companies. In the case of the UAE, since the introduction of mandatory regulations such as ECAS and EQM in 2018, companies have faced increasing difficulties. KTC plans to utilize its Dubai branch as a hub to support domestic companies and address all the aforementioned issues arising within GCC countries. Given the unique characteristics of the Middle East, KTC will take charge of the challenging task of local communication, aiming to reduce costs and save time for companies by over 30% compared to previous experiences.
President Sungil Ahn of KTC stated in his opening speech, "Based on the expertise of KTC and Dubai Science Park, an economic zone dedicated to the industrial development of the UAE, we will provide certification and regulatory support not only to domestic companies but also to companies located within the free zone, creating an opportunity for mutual benefits through partnerships with both institutions." After completing all the scheduled events, Director Ahn further mentioned, "In line with the promise of attracting $30 billion in investment during the previous presidential visit, we will utilize KTC's Dubai office as a dedicated platform for supporting the export activities of our companies."
