Samsung Engineering (now known as Samsung E&A) and GS Engineering & Construction Corp. (GS E&C) have secured a monumental $7.2 billion contract for the Fadhili Gas Increment Program in Saudi Arabia, setting a new benchmark for the country’s construction and engineering sector abroad. This contract represents the most significant construction project ever entrusted to a South Korean company in Saudi Arabia, underscoring the deepening economic cooperation and robust diplomatic relations between the two nations.
The awarding of the engineering, procurement, and construction (EPC) contracts by the world’s leading oil company, Saudi Arabian Oil Co. (Aramco), signifies a substantial leap forward, surpassing the $5 billion Amiral project awarded in June of the previous year. This achievement not only highlights the exceptional capabilities and global competitiveness of South Korean companies but also serves as a testament to the strengthened bilateral ties, particularly following high-level diplomatic engagements between the countries.
The strategic partnership between South Korea and Saudi Arabia, further reinforced by President Yoon Suk Yeol’s state visit and his meeting with Crown Prince Mohammed bin Salman Al Saud, is poised to catalyze future-oriented economic cooperation, with a keen focus on large-scale projects in infrastructure and construction. This contract propels South Korea’s overseas construction orders for the year to an impressive $12.7 billion, potentially paving the way to reach the ambitious $40 billion order target for the year.
The South Korean government’s proactive support for its corporations in securing global projects across diverse sectors, including petrochemicals, railway systems, and desalination projects, exemplifies a strategic approach to international market penetration and collaboration. This monumental contract not only bolsters South Korea’s standing in the global construction and engineering arena but also fortifies its strategic economic partnership with Saudi Arabia, promising a future of mutual growth and extensive cooperation.
