UAE And Malaysia Sign Comprehensive Economic Partnership Agreement To Enhance Trade And Investment Opportunities
The United Arab Emirates and Malaysia have formalised a Comprehensive Economic Partnership Agreement (CEPA). This significant event was attended by President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Malaysia's Prime Minister, His Excellency Anwar Ibrahim. The agreement aims to boost bilateral trade, encourage private sector partnerships, and foster investment in rapidly growing sectors.
The CEPA was signed at the Abu Dhabi National Exhibition Centre (ADNEC). Present at the signing were His Excellency Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and His Excellency Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry. The agreement is seen as a crucial step in enhancing economic ties between the two countries.
His Highness Sheikh Mohamed bin Zayed Al Nahyan highlighted the importance of this agreement in fortifying both nations' economies. He described it as a pivotal milestone in UAE-Malaysia relations. His Highness stated that Malaysia's rapidly expanding economy and pro-trade policies make it an essential partner in Southeast Asia.
The CEPA aims to deepen cooperation in key sectors, strengthen supply chains, unlock investment potential, and create new opportunities for private sector growth. The agreement will reduce or eliminate tariffs on various goods, simplify trade procedures, and improve market access for service exports.
Malaysia is Southeast Asia’s fourth-largest economy and a top trading partner for the UAE within the ASEAN region. In 2023, non-oil bilateral trade between the two countries reached US$4.9 billion, with US$4 billion recorded in the first nine months of 2024. The UAE is Malaysia’s second-largest trade partner in the Arab world, contributing 32% to Malaysia’s trade with Arab nations.
This agreement is expected to position the UAE as a strategic hub for Malaysian exports to regions like the Middle East and North Africa. It also opens up ASEAN markets to UAE investors and entrepreneurs. The UAE’s CEPA programme is integral to its goal of increasing non-oil foreign trade to AED 4 trillion (US$1.1 trillion) by 2031.
Expanding Global Trade Networks
The UAE has already established CEPAs with Indonesia and Cambodia. These agreements are part of efforts to strengthen ties with high-growth economies in Asia and enhance opportunities for private sector collaboration across the continent. The ASEAN bloc alone boasts a GDP exceeding US$2.9 trillion and a population of 647 million people.
This latest CEPA further consolidates the UAE's status as a global trade hub connecting dynamic economies worldwide. It underscores the country's commitment to fostering international cooperation with strategic markets such as those within ASEAN.
With inputs from WAM
Sign in with Google