Saudi oil giant Aramco has agreed to a $6 billion framework deal with Export-Import Bank of Korea, a move that could help South Korean companies win lucrative contracts in the kingdom's giga projects such as the $500 billion futuristic city Neom.
Of the $6 billion, $1 billion has been set aside for hydrogen and renewable energy deals, it stated.
The three-year deal -- which was inked between Eximbank Chairman Yoon Hee Sung and Saudi Aramco Chief Financial Officer Ziad Al Murshed in Seoul - is a follow-up measure to support a "second Middle East boom," said an Exim bank spokesman.
Under the framework agreement, the Exim Bank can lend up to $6 billion to Saudi Aramco, which in turn pays South Korean companies involved in projects whose orders were placed by the Saudi oil giant, he stated.
The deal comes amid expectations of key business opportunities in the kingdom and the Middle East following the November visit to Seoul by Saudi Crown Prince Mohammed bin Salman.
"The deal could give a big boost to South Korean companies in winning contracts in the Middle East," said Yoon Hee Sung.
South Korean companies are seeking to win construction deals in Saudi Arabia's $500 billion project to develop eco-friendly and smart cities in the kingdom's northwestern Tabuk Province.
