Dr R Seetharaman speaking at the Qatari-South Korean Banks’ reception in Seoul on Monday.

The bilateral trade between Qatar and South Korea surged from $21.5bn in 2010 to $26.8bn in 2012, mainly on increase in exports to the South East Asian country, Doha Bank Group CEO Dr R Seetharaman said.

Exports to South Korea increased from $21bn in 2010 to $25.9bn in 2012, he said, while speaking at the Qatari-South Korean Banks’ reception held in Seoul on Monday.

Seetharaman said: “Year 2014 is the 40th anniversary of the start of diplomatic relations between South Korea and Qatar. South Korean imports from Qatar are mainly oil and gas, while exports from South Korea are mostly electronics and automobiles.

Qatar’s buoyant trade with South Korea has been mainly due to rising export of liquefied natural gas. Qatar meets close to 30% of South Korea’s energy requirements.

In March 2012, RasGas signed a long-term sale and purchase agreement (SPA) with Kogas. Qatar, through Nakilat and its LNG joint ventures, took delivery of some 54 LNG tankers and four LPG ships built by South Korean shipyards, which are valued at more than $13.5bn.

On bilateral relationships between South Korea and Qatar in the non-hydrocarbon sector, he said: “In May 2011 Caravan, a South Korean company specialised in manufacturing prefab houses, signed an MoU with a local company to construct dormitories for foreign workers. In 2011 South Korean IT firms offered government bodies in Qatar state-of-the-art Intelligent Transport System (ITS) to improve the country’s transport industry. Samsung, the IT technology provider for the Korea World Cup 2002, has offered their latest technology for the Qatar World Cup 2022. ”

On the Qatar economy, he said: “GDP growth could stay around 5.9% in 2014 as the pickup in public investment programme is roughly offset by a modest decline in hydrocarbon output. Public investments are expected to keep growth roughly 6 to 7% over the medium term, and with non-hydrocarbon growth remaining about 10%, double-digit expansion in the non-oil and gas segment is expected in 2014.

“Qatar’s Budget 2014-15 has planned QR75.6bn on infrastructure development for the FIFA World Cup. The budget has made allocation for Hamad International Airport, the New Doha Port, as well as for the rail, metro and various road projects. Project work is also expected to commence on seven stadiums. Projects valued at an estimated QR664bn are anticipated to be implemented during the next five years.”

“Projects worth more than $72bn is expected to be awarded in Qatar in 2014, out of which transport, water and construction are the major sectors which will witness activity. South Korea has played an important role in the modernisation of Qatar. Qatar is an important Engineering, Procurement and Construction (EPC) market for Korea. Hyundai Heavy Industries was awarded the Barzan Gas Project lump sum engineering, procurement and construction (EPC) contract, which is one of the largest gas projects in the region.

“South Korean companies are working in major projects in Qatar, including Lusail Expressway project, Barzan Gas project, Business Network project, electricity and the metro project. In August 2013, Qatar and South Korea signed an MoU for co-operation in the construction sector. South Korean companies such as Hyundai, Ultra Construction, Samsung C&T, Caravan and Doosan Heavy industries participate in the Qatari construction sector.”