The UAE and Malaysia have signed a landmark Comprehensive Economic Partnership Agreement (CEPA), aiming to boost bilateral trade to $5 billion and deepen economic ties.
Strengthening Bilateral Trade
The agreement, signed at the Abu Dhabi National Exhibition Centre (ADNEC), was witnessed by UAE President Sheikh Mohamed bin Zayed Al Nahyan and Malaysian Prime Minister Anwar Ibrahim.
Key highlights include:
- Tariff reductions and eliminations on a wide range of goods.
- Enhanced market access for service exports.
- Streamlined trade procedures.
- Promotion of private sector collaboration in high-growth industries.
Sheikh Mohamed bin Zayed emphasized the CEPA’s significance:
“Malaysia, with its fast-growing economy and pro-trade policies, is a vital partner in Southeast Asia. This agreement strengthens our cooperation in key sectors, reinforces supply chains, and unlocks mutual investment potential.”
UAE-Malaysia Economic Relations
Malaysia, the fourth-largest economy in Southeast Asia, is a key trading partner for the UAE in the ASEAN region. Key figures:
- $4.9bn in non-oil trade in 2023.
- $4bn in trade recorded in the first nine months of 2024.
- The UAE accounts for 32% of Malaysia’s trade with Arab nations, solidifying its position as Malaysia’s second-largest Arab trade partner.
The CEPA is expected to position the UAE as a hub for Malaysian exports to the Middle East and North Africa, while opening ASEAN markets for UAE investors and businesses.
UAE’s Expanding CEPA Programme
This deal is part of the UAE’s broader CEPA programme, which aims to drive non-oil foreign trade to AED 4 trillion ($1.1 trillion) by 2031.
The UAE has already established CEPAs with Indonesia and Cambodia, solidifying its connections to high-growth economies in Asia and reinforcing its status as a global trade hub.