The Middle East, the land of "black gold," holds roughly half of the world's crude oil reserves. The two oil shocks of the 1970s paradoxically brought enormous profits to Middle Eastern oil-producing nations, and they poured this vast wealth into building social overhead capital (SOC) such as roads and ports. The foreign currency our predecessors earned while leading the Middle East construction boom during this period became the driving force behind Korea's "Miracle on the Han River."
Half a century later, the Middle East is going through a major crisis due to the war between Iran and the United States and Israel. Fortunately, a ceasefire and the lifting of the blockade of the Strait of Hormuz are taking shape, but about four months of military tension and conflict severely shook the global energy market. Oil-importing countries, including Korea, suffered greatly from surging oil prices and rising inflation, while oil-producing countries also incurred massive losses from disruptions to oil exports. This clearly proved that oil is both a "source of wealth" and an "Achilles' heel" for them.
Middle Eastern countries have long recognized the vulnerability of an economic structure overly dependent on oil alone. Sheikh Al Maktoum, the former prime minister of the United Arab Emirates (UAE), warned that the prosperity built on oil cannot continue indefinitely, saying, "My grandfather rode a camel, my father rode a camel, I drive a Mercedes, my son drives a Land Rover, and his son will drive a Land Rover, but his son will ride a camel." Saudi Arabia's Crown Prince bin Salman has also publicly declared that he would "end the addiction to oil."
In response, the two leading nations of the Middle East successively announced the "UAE Energy Strategy 2050" and "Saudi Vision 2030." At their core is a plan to dramatically raise the share of renewable energy generation while reducing dependence on the oil industry. It is a fierce survival strategy preparing for the shift from fossil fuels to renewable energy.
What makes this great energy transition possible is the scorching sunlight of the desert. Solar radiation in the Middle East is 1.5 times that of Korea, and clear weather continues for more than nine months of the year. The UAE and Saudi Arabia are continuously ordering gigawatt-hour (GWh)-class super-large battery energy storage system (BESS) projects to store electricity produced by solar power, transforming themselves into the world's most dynamic new energy markets. This is thanks to the combination of strong policy will, abundant solar power, and large-scale capital.
If our construction companies pioneered the construction boom of the past, in today's era of great energy transition, KEPCO is taking on that role. Based on the deep trust built through the Barakah nuclear power plant in the UAE, KEPCO won the Rumah and Nairyah gas-fired combined cycle project (3.8GW) and the Sadawi solar project (2GW) in Saudi Arabia in 2024, followed by the Dawadmi wind project (1.5GW) — an area 100 times that of Yeouido — in 2025. As a result, over the past two years it has won a record 8GW of overseas clean energy projects, achieving an effect of 4.9 trillion won in joint overseas expansion by Korean companies.
The energy alliance with the Middle East did not waver even amid the threat of war. About 3,500 people, including employees of KEPCO and its partner companies, firmly held their ground at sites in the UAE and Saudi Arabia and communicated closely with the project owners. The sincerity and sense of responsibility shown in the midst of crisis will return as boundless mutual trust.
Building on last year's summit diplomacy with Middle Eastern nations, if we can unite the government's substantial support, KEPCO's overseas business capabilities, and Team Korea's technological prowess, we will be able to produce even more concrete results in the eco-friendly energy business sector. If our predecessors created the "Miracle on the Han River" amid the sandstorms of the Middle East, now it is our turn to open a "Second Middle East Renaissance" under the blazing sun.
