UAE and Malaysia Agreed to Sign CEPA
The UAE and Malaysia have concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA), marking a significant milestone in their trade relations. This comes as non-oil trade between the two nations exceeded $2.5 billion in the first half of 2024, reflecting a 7% year-on-year growth.
The CEPA aims to reduce tariffs, lower trade barriers, and foster greater private-sector collaboration. It also seeks to create new avenues for investment, further strengthening the growing economic partnership between the two countries. In 2023, their non-oil trade surpassed $4.9 billion, a figure expected to rise with the new agreement in place.
UAE Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, emphasized the importance of the agreement, noting that the UAE’s global trade strategy aligns with its vision of building strategic partnerships that promote trade and investment, while driving sustainable economic growth. He highlighted Malaysia’s status as a trusted partner, with ample opportunities for UAE businesses, particularly in key sectors such as energy, logistics, manufacturing, and financial services.
Malaysian Minister of Investment, Trade, and Industry, Zafrul Aziz, hailed the agreement as Malaysia’s first free-trade deal with a GCC nation. He expressed confidence that the CEPA will enhance trade and investment ties, positioning the UAE as a key gateway for Malaysian exporters to access markets in the Middle East, North Africa, and Europe. Aziz also pointed out that UAE-based companies could leverage Malaysia as a strategic entry point into the ASEAN market, offering significant opportunities for businesses, especially small and medium enterprises (SMEs), through integration into regional supply chains and knowledge-sharing initiatives.
This agreement is part of the UAE’s broader CEPA initiative, which aims to increase non-oil foreign trade to AED 4 trillion by strengthening ties with key global markets. The UAE has already seen success in this program through agreements with other ASEAN nations, including Indonesia and Cambodia, which have boosted bilateral trade.
