The UAE and Malaysia announced today the signing of a Comprehensive Economic Partnership Agreement (CEPA) during a ceremony witnessed by President His Highness Sheikh Mohamed bin Zayed Al Nahyan and His Excellency Anwar Ibrahim, Prime Minister of Malaysia.
The UAE-Malaysia CEPA will reduce or eliminate tariffs on a wide range of goods, streamline trade procedures and enhance market access for service exports. The agreement also aims to accelerate bilateral trade, promote private-sector collaboration and create new opportunities for investment in high-growth sectors.
Stronger cooperation in key sectors
His Excellency Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and His Excellency Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry, signed the CEPA at the Abu Dhabi National Exhibition Center (ADNEC).
His Highness Sheikh Mohamed emphasized the significance of the agreement in strengthening the economies of both nations, noting that it is a pivotal milestone in UAE-Malaysia relations.
He added that Malaysia, with its fast-growing economy and pro-trade policies, is a vital partner in Southeast Asia. Sheikh Mohamed added that the agreement aims to deepen cooperation in key sectors, reinforce supply chains, unlock investment potential and open new doors for the two countries’ private sectors to thrive together.
Non-oil bilateral trade hits $4 billion
Malaysia, Southeast Asia’s fourth-largest economy, is already one of the UAE’s top trading partners in the ASEAN region, with non-oil bilateral trade reaching $4.9 billion in 2023 and $4 billion in the first nine months of 2024. The UAE is also Malaysia’s second-largest trade partner in the Arab world, accounting for 32 percent of Malaysia’s trade with Arab nations.
The agreement is projected to solidify the UAE as a strategic hub for Malaysian exports to the Middle East, North Africa and beyond while opening the ASEAN market to UAE investors and entrepreneurs.
The UAE’s CEPA program is a cornerstone of its efforts to drive non-oil foreign trade to AED4 trillion ($1.1 trillion) by 2031 and foster international cooperation with strategic markets such as the ASEAN bloc, which has a GDP of more than $2.9 trillion and a population of 647 million people.
With CEPAs already in force with Indonesia and Cambodia, the UAE continues to bolster its ties with the region and consolidate its status as a global trade hub that connects high-growth economies and expands opportunities for the private sector across Asia.
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UAE signs CEPA with New Zealand
The UAE also announced that it signed a CEPA with New Zealand today to reduce barriers to trade, enhance customs procedures and facilitate increased private sector collaboration and investment.
President His Highness Sheikh Mohamed bin Zayed Al Nahyan stated that the agreement was an important addition to the UAE’s CEPA program, solidifying ties with the dynamic Asia-Pacific region via one of its most developed and open markets.
The UAE-New Zealand CEPA builds on growing economic relations between the two countries, with bilateral non-oil trade reaching $642 million in the first nine months of 2024, an increase of 8 percent from the same period in 2023.
Under the CEPA, New Zealand will provide 100 percent duty-free access to imports from the UAE, while the UAE will grant duty-free access to 98.5 percent of New Zealand products, which will rise to 99 percent within three years. The deal is expected to boost bilateral trade to $5 billion by 2032, tripling the five-year average trade of $1.5 billion shared between the UAE and New Zealand from 2019-2023.
