A trade deal between the UAE and Kenya has been successfully concluded, aiming to stimulate investment in logistics, healthcare, travel, and tourism sectors between the two nations. The agreement, known as the Comprehensive Economic Partnership Agreement (CEPA), will facilitate improved market access for businesses on both sides, as reported by the Emirates News Agency (WAM). Additionally, the infrastructure and ICT sectors will experience positive effects from increased investments. The deal also establishes a platform for collaboration and expansion of small and medium-sized enterprises in both countries.
Kenya’s economy demonstrated a real annual GDP growth rate of 5 percent in 2023, surpassing the 4.8 percent growth of the previous year. The services sector, accounting for 53.6 percent of Kenya’s economy, and the agriculture sector, representing approximately one-quarter of the national GDP, present significant opportunities for UAE businesses seeking to expand into the region, as stated in the press release.
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UAE’s focus on Africa
Thani bin Ahmed Al-Zeyoudi, UAE’s minister of Foreign Trade, hailed the new agreement as a “significant milestone” in the country’s trade program. He underscored the UAE’s dedication to strengthening economic ties with Africa and creating fresh prospects for businesses and investors in both nations. Al-Zeyoudi also expressed his anticipation of deepening the relationship with Kenya and expanding the UAE’s presence in Africa as a reliable partner and investor, fostering innovation, sustainable growth, and development in key sectors like agriculture, technology, and tourism.
With @rebecca_miano, CS of the Ministry of Investments, Trade & Industry, the UAE & Kenya concluded a Comprehensive Economic Partnership Agreement. It is a landmark deal with one of the continent's most dynamic economies, offering new avenues for growth on both sides. pic.twitter.com/OYN8C2WR4n
— د. ثاني Ø£Øمد الزيودي (@ThaniAlZeyoudi) February 23, 2024
Economic growth and transformation
Rebecca Miano, Kenya’s Cabinet secretary for Investments, Trade, and Industry, regarded the agreement as evidence of her government’s commitment to utilizing international commerce as a crucial driver of economic growth and transformation. Miano highlighted the CEPA with the UAE as instrumental in promoting Kenyan exports to significant markets in Asia and the Middle East, as well as attracting investment inflows that would enhance national capabilities.
UAE’s successful CEPAs
In 2023, the UAE’s non-oil trade in goods reached a record high of $710 billion, marking a 12.6 percent increase from 2022 and a 34.7 percent increase from 2021. The UAE has already concluded ten CEPAs, including agreements with India, Indonesia, Türkiye, Georgia, and South Korea.
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