UAE’s Comprehensive Economic Partnership Agreements: A path to enhanced global trade in 2025

UAE Minister of State, Dr. Thani bin Ahmed Al Zeyoudi, announced that the newly signed Comprehensive Economic Partnership Agreements (CEPAs) between the UAE and Kenya, New Zealand, and Malaysia will significantly enhance sustained achievements in 2025. He emphasized that the UAE is promoting economic growth through stronger open trade and investment policies and expects the business community to reap more commercial and investment benefits from these agreements.

Dr. Al Zeyoudi further elaborated that the signing of these agreements coincides with Abu Dhabi Sustainability Week 2025, reflecting the UAE's profound understanding of the importance of open and rules-based trade. He stated that the UAE will continue to open up more business and investment opportunities globally through its Comprehensive Economic Partnership Agreement program.

In December 2024, Dr. Al Zeyoudi confirmed that the UAE will continue to increase its Comprehensive Economic Partnership Agreements (CEPAs) in 2025, aiming to cooperate with more countries to bring maximum benefits to the UAE and its international trading partners. He pointed out that these agreements will strengthen rules-based international trade, promote sustainable development, increase investment, and enhance trade opportunities for goods, services, and re-exports.

The Comprehensive Economic Partnership Agreement between the UAE and Malaysia was officially signed on Tuesday, aiming to accelerate bilateral trade, promote private sector cooperation, and create new investment opportunities in high-growth sectors. The agreement aims to reduce or eliminate tariffs on a variety of goods, simplify trade procedures, and improve market access for service exports. Malaysia is the fourth largest economy in Southeast Asia and one of the UAE's major trading partners in the ASEAN region, with non-oil bilateral trade reaching $4.9 billion in 2023 and $4 billion in the first nine months of 2024.

The UAE is also Malaysia's second-largest trading partner in the Arab world, accounting for 32% of Malaysia's trade with Arab countries. The agreement is expected to make the UAE a strategic hub for Malaysian exports to the Middle East, North Africa, and other regions, while opening up the ASEAN market to UAE investors and entrepreneurs.

The UAE's CEPA program is a key component of its strategy to increase non-oil foreign trade to 4 trillion dirhams ($1.1 trillion) by 2031 and promote international cooperation with key markets such as the ASEAN bloc. The ASEAN bloc has a GDP of over $2.9 trillion and a population of 647 million. With the CEPAs with Indonesia and Cambodia already in effect, the UAE is strengthening its ties with the region and consolidating its position as a global trade hub connecting high-growth economies and expanding opportunities for the private sector in Asia.

On the same day, the UAE and Kenya also officially signed a CEPA at Qasr Al Bahar in Abu Dhabi, aimed at deepening trade and investment relations, strengthening supply chains, and enhancing market access throughout the Middle East and Africa. Sheikh Mohammed welcomed the agreement, considering it a testament to the UAE's commitment to strengthening economic ties in Africa and creating new opportunities for businesses and investors. He stated that the CEPA will not only facilitate trade and investment but also promote innovation and sustainable growth in key sectors such as agriculture, retail, healthcare, financial services, technology, and tourism.

Kenyan President Dr. William Samoei Ruto expressed his gratitude to His Highness Sheikh Mohammed for his efforts in strengthening ties between the UAE and Kenya. He described the CEPA as a significant advancement in the economic relationship between the two countries and reaffirmed Kenya's desire to achieve shared goals for the benefit of both nations. Kenya's economy is one of the most promising in Africa, with a real GDP growth rate of 5.6% in 2023 and an average growth rate of 5.2% expected from 2024 to 2026. Its service sector accounts for 53.6% of Kenya's GDP, and agriculture accounts for about 25% of GDP, providing significant potential for UAE companies seeking to expand in the region.

Also on Tuesday, the UAE signed a CEPA with New Zealand at the Abu Dhabi National Exhibition Centre (ADNEC). This CEPA aims to strengthen bilateral trade and create new investment opportunities. The UAE-New Zealand CEPA builds on the growing economic relationship between the two countries, with bilateral non-oil trade reaching $642 million in the first nine months of 2024, an 8% increase compared to the same period in 2023. Under the CEPA, New Zealand will provide 100% duty-free access for imports from the UAE, while the UAE will provide duty-free access for 98.5% of New Zealand products, increasing to 99% within three years. Bilateral trade is expected to increase to $5 billion by 2032, essentially tripling the average trade of $1.5 billion between the UAE and New Zealand from 2019 to 2023.

This CEPA is New Zealand's first trade agreement with a Middle Eastern country and one of the most comprehensive CEPAs the UAE has signed to date, covering areas such as indigenous trade, sustainable development, women's economic empowerment, and transparency.