emirates7 - Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Zafrul Aziz, Malaysia's Minister of Investment, Trade and Industry, have announced the completion of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Malaysia. This agreement aims to eliminate or reduce tariffs, lower trade barriers, promote collaboration between private sectors, and new investment opportunities.
The agreement builds on the strengthening economic relationship between the two countries. In 2023, non-oil trade between the UAE and Malaysia exceeded US$4.9 billion, with trade in the first half of 2024 reaching US$2.5 billion, a 7 percent increase compared to the same period in 2023. Malaysia is currently the UAE’s 12th-largest Asian trading partner and ranks fifth among ASEAN nations, while the UAE is Malaysia’s second-largest trade partner in the Arab world, accounting for 32 percent of Malaysia’s trade with the region. Additionally, 40 percent of Malaysia's exports to the Arab world go to the UAE.
Al Zeyoudi highlighted that the UAE's success in establishing Comprehensive Economic Partnership Agreements with various economies reflects the leadership's vision to foster strategic partnerships that boost trade, investment, and sustainable economic growth. He noted that the agreement with Malaysia strengthens the already productive ties between the UAE and Southeast Asia. Malaysia, as Southeast Asia's fourth-largest economy, offers significant opportunities for UAE businesses, particularly in sectors like energy, logistics, manufacturing, and financial services.
Zafrul Aziz emphasized that this CEPA is Malaysia’s first Free Trade Agreement with a GCC country and is expected to enhance trade, boost investments, and deepen economic ties with the UAE. He added that the UAE serves as a strategic hub for Malaysian exporters to access markets in the Middle East, North Africa, and parts of Europe. Once the agreement takes effect, key Malaysian exports, including electronics, machinery, jewelry, tropical fruits, palm oil, and cocoa, will benefit from zero import duties. The CEPA will also provide opportunities for UAE-based businesses to use Malaysia as a gateway into the ASEAN market, helping to integrate small and medium-sized enterprises into regional supply chains and fostering knowledge sharing and capacity-building through UAE investments.
The UAE's CEPA program aims to increase non-oil foreign trade to AED4 trillion by strengthening ties with key global markets. This program has already led to agreements with ASEAN countries such as Indonesia and Cambodia, contributing to the acceleration of bilateral trade.
The agreement builds on the strengthening economic relationship between the two countries. In 2023, non-oil trade between the UAE and Malaysia exceeded US$4.9 billion, with trade in the first half of 2024 reaching US$2.5 billion, a 7 percent increase compared to the same period in 2023. Malaysia is currently the UAE’s 12th-largest Asian trading partner and ranks fifth among ASEAN nations, while the UAE is Malaysia’s second-largest trade partner in the Arab world, accounting for 32 percent of Malaysia’s trade with the region. Additionally, 40 percent of Malaysia's exports to the Arab world go to the UAE.
Al Zeyoudi highlighted that the UAE's success in establishing Comprehensive Economic Partnership Agreements with various economies reflects the leadership's vision to foster strategic partnerships that boost trade, investment, and sustainable economic growth. He noted that the agreement with Malaysia strengthens the already productive ties between the UAE and Southeast Asia. Malaysia, as Southeast Asia's fourth-largest economy, offers significant opportunities for UAE businesses, particularly in sectors like energy, logistics, manufacturing, and financial services.
Zafrul Aziz emphasized that this CEPA is Malaysia’s first Free Trade Agreement with a GCC country and is expected to enhance trade, boost investments, and deepen economic ties with the UAE. He added that the UAE serves as a strategic hub for Malaysian exporters to access markets in the Middle East, North Africa, and parts of Europe. Once the agreement takes effect, key Malaysian exports, including electronics, machinery, jewelry, tropical fruits, palm oil, and cocoa, will benefit from zero import duties. The CEPA will also provide opportunities for UAE-based businesses to use Malaysia as a gateway into the ASEAN market, helping to integrate small and medium-sized enterprises into regional supply chains and fostering knowledge sharing and capacity-building through UAE investments.
The UAE's CEPA program aims to increase non-oil foreign trade to AED4 trillion by strengthening ties with key global markets. This program has already led to agreements with ASEAN countries such as Indonesia and Cambodia, contributing to the acceleration of bilateral trade.