The UAE continues to expand its network of economic and investment partnerships with strategic global markets, thereby strengthening capital flows, opening new trade channels, and supporting long-term sustainable growth objectives.
Moreover, the country is accelerating efforts to diversify its economic partners by deepening cooperation with high-potential emerging markets, including Latin America. As a result, several Comprehensive Economic Partnership Agreements (CEPAs) with Latin American countries entered into force in 2025, reinforcing trade and mutual investment across priority sectors.
CEPAs with Costa Rica and Chile
Among the most notable developments, the CEPA with the Republic of Costa Rica came into effect on 1 April 2025. The agreement aims to eliminate or reduce customs duties, facilitate trade in goods and services, and expand investment opportunities, particularly for small and medium-sized enterprises. Consequently, it is expected to lower market access barriers and improve commercial integration between both economies.
Additionally, the CEPA with the Republic of Chile entered into force in November 2025, following its signing in July last year. The agreement seeks to expand non-oil trade and facilitate mutual investment in strategic areas such as infrastructure, energy, logistics services, food security, and technology. Meanwhile, negotiations continue to advance toward concluding similar comprehensive agreements with other regional partners, including the Republic of Peru.
Investment momentum and institutional framework
Karla Flores, Director of InvestChile, said that the entry into force of the Comprehensive Economic Partnership Agreement between the UAE and Chile represents a qualitative leap in bilateral economic relations. She noted that the agreement is expected to accelerate interest from UAE companies and sovereign wealth funds in Chilean investment opportunities, while supporting an expansion in UAE foreign direct investment over the coming period.
In statements to the Emirates News Agency (WAM), she explained that the UAE is a key economic partner for Chile in the Gulf region. Furthermore, she said the CEPA builds on a strong institutional foundation, including the Double Taxation Avoidance Agreement in force since 2023 and the Customs Cooperation Agreement implemented in 2024, both of which enhance investor confidence and improve the business environment.
She added that the agreement extends beyond tariff reductions. Instead, it establishes an integrated framework to promote investment, develop value chains, and create structured dialogue between governments and the private sector. As a result, it supports a transition toward long-term investment partnerships with measurable economic and developmental impact.
