UAE, Malaysia sign CEPA as non-oil bilateral trade grows to $4 billion

The United Arab Emirates (UAE) and Malaysia today announced the signing of a Comprehensive Economic Partnership Agreement (CEPA), with His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and His Excellency Anwar Ibrahim, Prime Minister of Malaysia, witnessing the signing ceremony. This agreement aims to promote economic cooperation between the two countries by reducing or eliminating tariffs on various goods, simplifying trade procedures, and expanding market access for service exports.

The UAE-Malaysia Comprehensive Economic Partnership Agreement will also accelerate bilateral trade, promote private sector cooperation, and create new opportunities for investment in high-growth sectors. His Excellency Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and His Excellency Tengku Zafrul Aziz, Malaysian Minister of Investment, Trade and Industry, signed the agreement at the Abu Dhabi National Exhibition Centre (ADNEC).

Sheikh Mohamed emphasized the importance of the agreement in strengthening the economies of both countries, noting it as a key milestone in UAE-Malaysia relations. He added that Malaysia, with its rapidly growing economy and pro-trade policies, is an important partner in the Southeast Asian region. The agreement aims to deepen cooperation in key areas, strengthen supply chains, unlock investment potential, and open new doors for the mutual prosperity of the private sectors of both countries.

Malaysia is the fourth-largest economy in Southeast Asia and one of the UAE's main trading partners in the ASEAN region. In 2023, non-oil bilateral trade between the two countries reached $4.9 billion, and it reached $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 solidify the UAE's position as a strategic hub for Malaysian exports to the Middle East, North Africa, and beyond, while opening up the ASEAN market for UAE investors and entrepreneurs.

The UAE's Comprehensive Economic Partnership Agreement program is an important part of its efforts to boost non-oil foreign trade to AED 4 trillion ($1.1 trillion) by 2031 and promote international cooperation with strategic markets such as ASEAN. ASEAN has a GDP of over $2.9 trillion and a population of 647 million. With the Comprehensive Economic Partnership Agreements with Indonesia and Cambodia now in effect, the UAE will continue to strengthen its ties with the region and solidify its position as a global trade hub connecting high-growth economies and expanding opportunities for the Asian private sector.

In addition, the UAE also announced today the signing of a Comprehensive Economic Partnership Agreement with New Zealand, aimed at reducing trade barriers, strengthening customs procedures, and promoting private sector cooperation and investment. His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, stated that the agreement is an important addition to the UAE's Comprehensive Economic Partnership Agreement program, consolidating ties with the dynamic Asia-Pacific region through one of its most developed and open markets.

The UAE-New Zealand Comprehensive Economic Partnership Agreement builds on the growing economic relationship between the two countries. In the first nine months of 2024, non-oil bilateral trade between the two countries reached $642 million, an 8% increase compared to the same period in 2023. Under the agreement, New Zealand will provide 100% duty-free access for imports from the UAE, while the UAE will provide duty-free access to 98.5% of New Zealand products, increasing to 99% within three years. The agreement is expected to increase bilateral trade to $5 billion by 2032, triple the five-year average trade of $1.5 billion between the UAE and New Zealand from 2019-2023.

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