CEPA Aims To Elevate UAE-Cambodia Non-Oil Trade Beyond USD 1 Billion By 2030

The Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Cambodia, which became effective earlier this year, is set to significantly boost non-oil trade beyond US$1 billion by 2030. Neak Oknha Kith Meng, President of the Cambodia Chamber of Commerce, highlighted this during the "Doing Business with Cambodia" forum. He emphasised that CEPA serves as a crucial policy tool for enhancing economic ties between the two nations.

Kith Meng pointed out that CEPA provides the UAE with a strategic entry into the ASEAN market, which comprises 680 million consumers. Simultaneously, it grants Cambodia preferential access to diversify its economy and integrate into the GCC hub. This agreement is seen as a mutually beneficial arrangement that strengthens economic cooperation between both regions.

The recent visit by a Dubai Chamber delegation to Phnom Penh under the "New Horizons" programme underscores a shared commitment to bolstering economic relations and fostering joint investments. Kith Meng noted that this visit marks Cambodia's new phase of openness and international engagement, highlighting the growing interest of UAE investors in various sectors within Cambodia.

Priority areas for UAE businesses in Cambodia include infrastructure and logistics, tourism, and renewable energy projects. These sectors are pivotal as Cambodia aims to become a regional transport hub and meet increasing tourism demand from the UAE and Middle East. Additionally, renewable energy initiatives are focused on reducing industrial power costs and enhancing competitiveness.

Cooperation in the digital economy is also gaining traction, particularly in FinTech investments that facilitate cross-border trade finance and payment systems. Vocational training centres are being developed to cultivate skilled labour for Cambodia’s manufacturing and services sectors. These efforts align with Cambodia's strategy to support robust economic growth through financial stability and favourable policies.

Kith Meng described Cambodia as a strategic gateway to ASEAN markets, benefiting from major regional trade agreements like the Regional Comprehensive Economic Partnership (RCEP). He encouraged UAE companies to explore investment opportunities in Cambodia, assuring them of full support from the Cambodia Chamber of Commerce for market entry guidance.

Strengthening Bilateral Economic Ties

The diversity of the Emirati delegation visiting Phnom Penh — spanning oil and gas, construction materials, food and beverages, and healthcare — reflects increasing UAE investor interest in Cambodian opportunities. Kith Meng expressed gratitude towards Dubai Chambers for their role in enhancing bilateral economic cooperation.

He stated that now is an opportune time to launch new ventures that will benefit both countries. The new investment law in Cambodia offers comprehensive incentives such as tax holidays and streamlined processes for foreign enterprises, making it an attractive destination for investors seeking growth opportunities.

With inputs from WAM