The United Arab Emirates (UAE) continues to solidify its position as a global trade powerhouse with the signing of three major trade agreements with Kenya, Malaysia and New Zealand. These agreements, finalised on Tuesday, mark the last step before ratification and implementation, reinforcing the UAE’s commitment to economic diversification beyond oil.
Strategic Economic Growth Through Trade
As part of its Comprehensive Economic Partnership Agreements (CEPA) strategy, the UAE has been aggressively expanding its trade relations. From forging deals with economic giants like India and Indonesia to overcoming political divides with Israel and Turkey, the Gulf state is making calculated moves to strengthen its global economic footprint.
Speaking at Abu Dhabi Sustainability Week, UAE Trade Minister Thani Al Zeyoudi emphasised the importance of these agreements:
“Today we signed three agreements … Those nations are the ones that are looking at liberalisation as a tool to continue the growth of their economies, continue supporting the supply chain and ensuring that trade flow between nations is continuing.”
These partnerships underscore the UAE’s vision to establish itself as a global trade hub by promoting free trade and economic liberalization.
Kenya: A Gateway to East Africa
The agreement with Kenya is particularly strategic, as it positions the UAE for broader economic engagement across East Africa. With Kenya serving as a crucial regional hub, this partnership is expected to pave the way for further agreements with the East African Community (EAC), creating a ripple effect of increased trade and investment opportunities.
Zeyoudi confirmed that negotiations with the entire bloc would commence immediately, setting the stage for enhanced economic collaboration across Africa.
Malaysia: A Focus on AI and Digital Infrastructure
The UAE’s agreement with Malaysia extends beyond traditional trade, incorporating investments in artificial intelligence (AI) and data centres. This aligns with the UAE’s broader economic vision of becoming a leader in digital transformation and technological innovation.
Other key sectors targeted in the UAE-Malaysia agreement include logistics and ports, food security and pharmaceuticals. Trade between the two nations has been robust, with non-oil bilateral trade reaching $4.9 billion (R92.55 billion) in 2023 and hitting $4 billion (R75.55 billion) in the first nine months of 2024, according to state news agency WAM.
New Zealand: Tariff-Free Trade on the Horizon
The UAE’s trade deal with New Zealand will provide significant economic benefits for both nations. Under the agreement, 98.5% of New Zealand’s exports to the UAE will be duty-free immediately, with that number rising to 99% within three years.
This move is expected to strengthen trade in agriculture, dairy and high-value exports, reinforcing economic ties between the Middle East and the Pacific.
Future Prospects: The EU in Sight
Looking ahead, the UAE has set its sights on a trade agreement with the European Union (EU). Zeyoudi expressed optimism about initiating bilateral talks with the EU this year, emphasising that many EU member states support the move.
Unlike traditional multilateral negotiations, the UAE’s bilateral approach allows for faster progress, enabling it to align its economic and political interests more efficiently.
The UAE’s Global Trade Vision
With these new trade agreements, the UAE is reinforcing its long-term strategy for economic expansion and diversification. By securing trade partnerships across Africa, Asia and the Pacific, the UAE is positioning itself as a key global trading hub, fostering economic resilience in a rapidly changing world.
The nation’s ability to negotiate and execute high-impact trade deals showcases its commitment to sustainable economic growth, innovation and global connectivity. As the UAE continues its push for new partnerships, the world is watching how these agreements will reshape international trade dynamics.
For more insights on the UAE’s global trade strategy, visit UAE Ministry of Economy.
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