UAE Signs CEPA Agreements with Malaysia, Kenya, and New Zealand

The UAE has signed CEPA trade agreements with Malaysia, Kenya, and New Zealand to enhance its post-oil economy and foster open trade and investment policies. These deals now require to be ratified by both sides before implementation.

The UAE has signed trade agreements with Malaysia, Kenya, and New Zealand as part of its Comprehensive Economic Partnership Agreements (CEPAs) program, marking the final step before their ratification and implementation. These deals reflect the Gulf state’s broader strategy to enhance its post-oil economy and foster international trade relations.

Expanding economic horizons

“The UAE fosters economic growth through stronger open trade and investment policies. The country’s business community is expected to reap further commercial and investment benefits from these agreements,” said Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.

Since the launch of the CEPA program in 2021, the UAE has concluded 24 trade agreements with countries and international blocs, impacting approximately 2.5 billion people—a quarter of the global population. These partnerships aim to diversify the UAE’s economy, reduce dependency on oil, and bolster trade in high-potential sectors.

UAE-Kenya CEPA: Boosting non-oil trade

The trade pact with Kenya builds on a strong economic relationship. Bilateral non-oil trade between the two nations reached US$3.1 billion in the first nine months of 2024, a 29.1 percent increase from the same period in 2023. The agreement is expected to enhance investments in sectors like ICT, banking, tourism, infrastructure, and renewable energy.

UAE-Malaysia CEPA: Focus on strategic sectors

The UAE’s non-oil bilateral trade with Malaysia stood at US$4.9 billion in 2023, with US$4 billion recorded in the first nine months of 2024. The CEPA with Malaysia targets strategic sectors such as data centers, artificial intelligence, logistics, ports, food security, and pharmaceuticals, laying the groundwork for significant trade and investment opportunities.

UAE-New Zealand CEPA: Tariff reductions and trade growth

Under the agreement with New Zealand, tariffs on 98.5 percent of the country’s exports to the UAE will be removed immediately upon implementation, increasing to 99 percent within three years. Bilateral non-oil trade between the two countries reached US$642 million in the first nine months of 2024, highlighting the growing economic relationship.

Expanding to the Eurasian Economic Union

In December 2024, the UAE finalized CEPA negotiations with the Eurasian Economic Union (EAEU), encompassing Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. Non-oil trade with the EAEU bloc reached US$13.7 billion in H1 2024, a 29.6 percent increase compared to the same period in 2023. This agreement seeks to harmonize digital trade, e-commerce, and SME collaboration, offering new opportunities for mutual trade.

Driving non-oil trade growth

The UAE aims to drive its non-oil foreign trade to US$1.1 trillion (Dhs4 trillion) by 2031. With record-breaking non-oil trade of Dhs1.4 trillion in H1 2024—an 11.2 percent year-on-year increase—the country continues to deepen ties with fast-growing economies and attract foreign investment.

Outlook

The CEPA program is central to the UAE’s efforts to strengthen trade with key global markets, including the ASEAN bloc, which boasts a GDP of over US$2.9 trillion and a population of 647 million. Since 2021, the UAE has ratified CEPAs with India, Israel, Indonesia, Türkiye, Cambodia, and Georgia, further diversifying its trade and investment portfolio.

“These agreements underscore the UAE’s commitment to positioning itself as a global trade hub, creating new opportunities for its private sector and enhancing international cooperation,” Dr. Al Zeyoudi said.

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