UAE-Korea Comprehensive Economic Partnership Agreement Set To Take Effect By End Of 2025

The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and South Korea is nearing its final stages, with plans to be implemented by the end of 2025. Dr. Thani bin Ahmed Al Zeyoudi, UAE's Minister of Foreign Trade, shared this update during a UAE-Korea business roundtable in Abu Dhabi. The agreement aims to boost trade and economic ties by reducing tariffs and removing non-tariff barriers.

Dr. Al Zeyoudi highlighted that CEPA will enhance trade in goods and services while facilitating investment flows between the two nations. The agreement is expected to diversify and strengthen bilateral economic relations significantly. Both countries share a vision for sustainable growth through trade and economic diversification, aiming for elevated cooperation levels.

The UAE-Korea business roundtable focused on sectors such as defence, energy, food, and technology. This event witnessed significant participation from the UAE's private sector, with over 25 companies exploring future trade and investment opportunities. The discussions underscored the strategic importance both nations place on enhancing their economic partnership.

Lee Jae-myung's visit to the UAE underscores Korea's strategic interest in strengthening ties with the UAE. Several memoranda of understanding have been signed across various sectors including food, cosmetics, finance, energy, artificial intelligence within peaceful nuclear energy, and petroleum. These agreements reflect diverse investment opportunities available between both countries.

Non-oil trade between the UAE and Korea reached US$6.6 billion in 2024, marking an increase of over 11 percent. In the first half of 2025 alone, trade amounted to US$3.1 billion. This growth highlights the robust economic relationship between the two countries and their commitment to further enhancing these ties.

The roundtable served as a platform for both nations to explore new avenues for collaboration across vital sectors. It also provided an opportunity for businesses from both sides to engage directly and discuss potential partnerships that could drive future growth.

The ongoing collaboration between the UAE and Korea demonstrates a shared commitment to fostering economic integration and sustainable development through strategic partnerships. As CEPA moves closer to implementation, both countries are poised to benefit from strengthened economic ties.

With inputs from WAM