Middle East exports and contract wins plunge amid fallout from war... September exports to the Middle East fall 14%

Exports remain strong, with the country on the verge of reaching $1 trillion, but the Middle Eastern market has yet to escape the fallout from the prolonged war. Exports of major items such as automobiles and general machinery have fallen amid disruptions to traffic through the Strait of Hormuz, and overseas plant contract wins have also weakened.
The government has moved to boost contract wins, including through financial support, in response to delays in new project orders in the Middle East and intensifying competition for contracts.
According to the Ministry of Trade, Industry and Energy on the 20th, exports to the Middle East last month totaled $1.6 billion as of the 25th, down 14.1% from the same period a year earlier. Exports to the region have declined for seven consecutive months since late February this year, when the war in the Middle East broke out.
By category, exports of automobiles fell 16% year on year, general machinery 37%, and auto parts 12%.
Plant contract wins in the Middle East have also been hit. Through the third quarter of this year, the value of plant contracts won in the region totaled $5.83 billion, down 39.8% from the same period last year. Industry sources say that the prolonged war in the Middle East has delayed some schedules for issuing orders for new local projects, while competition with rival countries such as China has intensified.
The government has responded by stepping up support to help revive contract wins in the Middle East. The Ministry of Trade, Industry and Energy held a meeting that day with major plant companies, including Daewoo Engineering & Construction, Samsung E&A and Hyundai Engineering & Construction, to discuss obstacles to winning contracts and possible support measures. It plans to provide financial support and information on project orders, and to pursue networking with project owners and high-level consultations through the Korea Trade Insurance Corporation and KOTRA, among others.
[email protected] Park Ji-young Reporter