UAE signs trade deals with Malaysia, Kenya, New Zealand

The UAE signed trade agreements with Malaysia, Kenya, and New Zealand on Tuesday, the final step before the deals can be ratified and implemented, which is part of the Gulf state’s broader strategy to bolster its post-oil economy plans under its Comprehensive Economic Partnership Agreements (CEPAs) programme.

“The UAE fosters economic growth through stronger open trade and investment policies. The country’s business community is expected to reap further commercial and investment benefits from these agreements,” said Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.

Since the launch of the programme in 2021, the UAE has concluded 24 CEPAs with countries and international blocs, covering approximately 2.5 billion people – about a quarter of the global population.

The trade agreement with Kenya builds on the two countries, which saw bilateral non-oil trade reach $3.1bn in the first nine months of 2024, a 29.1 per cent compared to the same period in 2023.

The trade deal is expected to accelerate investment flows in high-potential areas such as ICT, banking, tourism, infrastructure, and renewable energy.

The UAE’s non-oil bilateral trade with Malaysia reached $4.9bn in 2023 and stood at $4bn in the first nine months of 2024.

The CEPA with the Southeast Asian country included potential investments in data centres and artificial intelligence, logistics and ports, food security, and pharmaceuticals, which are targeted sectors for global trade.

Similarly, the trade pact with New Zealand removes tariffs on about 98.5 per cent of the country’s exports immediately upon implementation, rising to 99 per cent within three years. It builds on the growing economic relations between the UAE and New Zealand, with bilateral non-oil trade reaching $642m in the first nine months of 2024.

Last December, the Gulf state finalised CEPA negotiations with the Eurasian Economic Union. The trade pact will encompass the five members of the EAEU bloc, made up of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.

The UAE’s CEPA programme is a cornerstone of its efforts to drive non-oil foreign trade to $1.1tn (Dhs4tn) by 2031 and foster international cooperation with strategic markets such as the ASEAN bloc, which boasts a GDP of more than $$2.9tn and a population of 647 million.

Read: UAE finalises pact to boost trade with Eurasian Economic Union