UAE Expands Strategic Partnerships With Latin America To Accelerate Investment Opportunities

The UAE is deepening Comprehensive Economic Partnership Agreements with Latin American partners, seeking higher trade flows, stronger investment links and more diversified growth. These agreements target reduced customs duties, greater access for services, and wider investment options, supporting the country’s plans to expand non-oil economic ties with fast-growing markets beyond its traditional partners.

A central element of this strategy is the focus on emerging economies in Latin America, where the UAE is opening new channels for companies, sovereign wealth funds and small and medium-sized enterprises. Agreements entering into force in 2025 underline the shift towards long-term cooperation, especially in sectors such as infrastructure, logistics, energy, technology and food security.

The Comprehensive Economic Partnership Agreement between the UAE and the Republic of Chile became effective in November 2025, after being signed in July 2024. The CEPA focuses on non-oil trade and two-way investment, with a strong emphasis on strategic fields that matter to both economies, including ports, renewable and traditional energy, supply chains and agri-food industries.

Karla Flores, Director of InvestChile, highlighted the importance of the deal, stating that the entry into force of the Comprehensive Economic Partnership Agreement between the UAE and Chile represents a qualitative leap in economic relations between the two countries. Flores expects growing interest from UAE investors as a result of the new legal and institutional framework.

Flores added that "the agreement will help accelerate the interest of UAE companies and sovereign wealth funds in the investment opportunities available in Chile, while paving the way for expanding the stock of UAE foreign direct investment in the coming phase." This view reflects expectations of increased capital flows into priority Chilean projects.

In remarks to the Emirates News Agency (WAM), Flores said that the UAE now acts as a main economic partner for Chile inside the Gulf region. Flores explained that the CEPA builds on earlier arrangements, such as the Double Taxation Avoidance Agreement, in force since 2023, and the Customs Cooperation Agreement, which has applied since 2024, both seen as measures that improve legal clarity and investor confidence.

She also stressed that the accord extends beyond tariff cuts, noting that it creates a broader system for investment promotion and regional value chain development. She pointed out that the agreement offers channels for structured dialogue between public authorities and private sector representatives, supporting a shift towards durable investment partnerships with measurable economic and developmental outcomes for both sides.

Alongside the Chile deal, the UAE has also brought into force a CEPA with the Republic of Costa Rica, effective from 1st April 2025. This agreement focuses on lowering or fully removing customs duties, streamlining trade in goods and services, and widening access for small and medium-sized enterprises, which are expected to benefit from easier market entry and more predictable trade rules.

Negotiations continue with other Latin American countries, including the Republic of Peru, as the UAE seeks broader regional coverage. These talks aim to mirror existing CEPAs by improving market access, simplifying customs procedures and encouraging mutual investment, while supporting the UAE’s longer-term goal of diversifying economic partners and embedding sustainable growth with key markets worldwide.

The UAE’s expanding CEPA network with Latin American states, supported by tax and customs cooperation frameworks, is reshaping trade and investment links. Agreements with Chile and Costa Rica already in force, and potential deals with Peru, are expected to reinforce non-oil economic activity, give businesses clearer rules, and support stable, long-term partnerships between the UAE and the wider region.

With inputs from WAM