SEOUL, KOREA- Dallah Al-Baraka Group, a top-tier Saudi Arabian conglomerate, will allow as many Korean suppliers as possible to participate in large scale government and social projects it is involved in the Middle East. Mr. Fahad Malaikah, Deputy General Manager of the Group’s investment department, said on August 18 during his Korea visit, "We plan to expand alliances with Asian companies. As part of this strategy, we have decided Korea, a country with a business-friendly government and so many technically strong companies, as a strategic base from which to expand throughout the region."
Dallah Al-Baraka Group, a business group founded by Sheikh Saleh Abdullah Kamel, has operations in wide-ranging areas including the media, construction, engineering, Islamic banking and finance, insurance, real estate, tourism, and health care. Although the group has traditionally focused on the Middle East and Western markets, it has started to increase investments in Asia, including Korea, since early this year. Recently the group invested 200 billion won in EastBridge Partners, a Korean private equity fund firm, and its PEF and 10 billion won in a Korean info-tech company.
Mr. Malaikah also said, "Asian companies such as those from Korea and China are promising investment targets as they are highly competitive in technology. Given Korea has signed the double taxation avoidance treaty with Saudi Arabia in 2007, it is a particularly attractive investment destination for Saudi investors." Of the total 2-trillion-won size project the Group is currently promoting, he said, "Around 40 percent will be procured from Korean suppliers."
“Dallah Group is a long-term investor seeking long term partnerships with its investee companies.” said Mr. Malaikah. “We believe Korean companies have excellent opportunity to expand into MENA region where Dallah has strong network and wide influence. Dallah will be creating a win-win model and support mutual growth with Korean and Asian companies in the region.”
Dallah Al-Baraka Group, which has Islamic Banking as one of its core businesses, also has high hopes for Islamic Banking in Korea. After discussing last government’s unsuccessful attempts to introduce Sukuk, Islamic Bond, in the Korean market, Mr. Malaikah said “Islamic banking has fairness in profit sharing and wealth distribution at its core and Dallah has been a strong believer of its potential. Whenever the Korean government approves Sukuk issuance, Dallah will be the first to knock on its door for this new opportunity.”
