“The Middle East is full of abundant energy resources…Expecting oil money synergies”

[Source] https://www.edaily.co.kr/news/read?newsId=01266086635612856&mediaCodeNo=257



Session 4 'Expanding Middle East boom, creating synergy through investment cooperation'

Investor interest in the market environment that has changed from the past

Middle East market potential is huge... abundant energy resources

"Be smart in the land of opportunity"

[E-Daily Kim Dae-yeon, Lee Geon-eum, Kim Yeon-ji, and Song Jae-min reporters] Expectations for a 'second Middle East boom' are rising as Middle Eastern countries are earning huge amounts of dollars due to the energy crisis triggered by the Russia-Ukraine war. In the era of high oil prices, more and more people are seeking new investment opportunities in the Middle East, which is growing based on abundant oil money. Capital market experts predicted that the Middle East, which is brimming with new energy resources, has great growth potential, calling it the “land of opportunity.”

[E-Daily Reporter Lee Young-hoon] Chang Dong-heon, advisor at law firm Yulchon, Park In-dae, Samil PwC partner, and Lee Jong-cheon, chairman of the Korea-Saudi Friendship Association. Yoon Ji-seon, head of alternative investment office at Teachers' Pension Service, and Lee Tae-woo, CIO of Alchemic Investment, held at the '2023 Global Alternative Investment Conference (GAIC)' held at the Grand Ballroom of The Plaza Hotel, Jung-gu, Seoul on the afternoon of the 25th, 'spreading Middle East boom, creating synergy through investment cooperation' discussing the topic The ‘2023 Global Alternative Investment Conference’, held under the theme of ‘Alternative Investment, Reconstructing Strategies’, is a place to discuss how to formulate alternative investment strategies in a situation where many formulas previously used in the financial market have been broken due to Corona 19.

At the Global Alternative Investment Conference (GAIC) 2023 Session 4 held on the 25th at The Plaza in Jung-gu, Seoul, capital market experts held a heated discussion under the theme of “spreading Middle East boom, creating synergy through investment cooperation”.

Lee Jong-chun, head of the Korea-Saudi Friendship Association, said, “The operation strategy of sovereign wealth funds is changing due to diversification of industries such as high-tech machinery, and Crown Prince bin Salman of Saudi Arabia emphasized that Korea is a strategic partner.” I think we need a variety of business models, such as establishing a joint venture,” he said.

However, Park In-dae, a partner at Samil Accounting Firm, said, “Middle Eastern countries also have different investment environments, laws and regulations, so you need to know how to distinguish various issues.” He emphasized that he could get caught up in it, so a sufficient preliminary review is needed from the beginning.”

This is not the first time that the domestic investment industry has shown interest in attracting oil money from the Middle East. Although the growth potential of the Middle East market has been high in the past, domestic institutional investors such as pension funds and mutual aid associations, who prefer stable investments, had some difficulties. Yoon Ji-seon, head of alternative investment division at Teachers' Pension Service, said, "The Teachers' Pension Service has been responding to overseas alternatives and stocks since 2018. The Middle East is a country with abundant energy resources, so it needs to be considered for diversification of investments in the future." .

Jang Dong-heon, an adviser to Yulchon Law Firm, also predicted, “Until now, domestic pension funds have not been active in co-investing with overseas pension funds.

In particular, advisor Jang said, “Since Saudi Arabia is a leading country in new energy such as solar power, wind power, and ammonia, I know that many Korean investment professionals have been to Saudi Arabia, and there is no market in the world that can generate such growth.” “Of course, there will be risks if it is a ‘land of opportunity’, but if you overcome it with wisdom, you will definitely be able to discover good investment opportunities,” he emphasized.

Regarding this, Lee Tae-woo, CIO of Alchemic Investment, said, “It is not easy to attract oil money, but I think there is a possibility.” Since this is emerging, I think I need to think well and strategize well from now on.”

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