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Thu, Oct 10, 2024 | Rabi al-Thani 7, 1446 | DXB
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UAE, Malaysia conclude Cepa talks
UAE’s Cepa programme aims to increase the country’s non-oil foreign trade to Dh4 trillion
Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Zafrul Aziz, Minister of Investment, Trade and Industry for Malaysia, at the signing ceremony. — Supplied photo
The UAE and Malaysia have concluded negotiations for the Comprehensive Economic Partnership Agreement (Cepa), which would boost bilateral non-oil trade and investment.
The Cepa, the latest bilateral free trade deal the UAE is concluding following talks by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Zafrul Aziz, Minister of Investment, Trade and Industry for Malaysia, seeks to eliminate or lower tariffs, reduce trade barriers, promote private-sector collaboration and establish new pathways for investment.
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Al Zeyoudi said the latest milestone reflects productive relations that have developed between the UAE and Malaysia – and Southeast Asia. “Malaysia is a long-standing and trusted trade partner that, like the UAE, seeks to enhance its economic prospects through increased trade and targeted investment.”
The UAE’s Cepa programme aims to increase the country’s non-oil foreign trade to Dh4 trillion by expanding relations with strategically important markets. It has seen the UAE strengthen ties with the Asean bloc, with agreements with Indonesia and Cambodia now in operation, each helping to accelerate bilateral trade.
The Cepa with Malaysia builds on deepening economic ties between the two nations, which in 2023 saw bilateral non-oil trade exceed $4.9 billion. In the first half of 2024, non-oil trade reached $2.5 billion, a 7.0 per cent increase compared to the same period in 2023. Malaysia currently ranks as the UAE’s 12th-largest Asian trading partner, and fifth among Asean countries, while the UAE is Malaysia’s second-largest trade partner in the Arab world, accounting for 32 per cent of Malaysia’s trade with Arab nations. The UAE is also the destination for 40 per cent Malaysia’s merchandise exports to the Arab world.
Al Zeyoudi stressed that continued progress made by the UAE in concluding Cepas with promising economies worldwide reflects the forward-looking vision of the nation’s wise leadership and its directives to build strategic partnerships that increase trade and investment flows and stimulate sustainable economic growth.
“As the fourth largest economy in the Southeast Asia region, and with economic growth in 2024 set to outstrip forecasts, Malaysia offers substantial opportunity for our exporters, industrialists, and business leaders, especially in high-growth sectors such as energy, logistics, manufacturing, and financial services,” said Al Zeyoudi.
Minister Aziz said the Cepa, Malaysia's first free trade pact with a GCC nation, will enhance trade, boost investments, and deepen the Malaysia-UAE economic ties. “We view the UAE as a strategic hub for Malaysian exporters to access markets in the Middle East, North Africa, and certain parts of Europe, particularly as Malaysian exports such as electrical and electronics, machinery, jewellery, prepared foodstuff, tropical fruits, palm oil, cocoa, and rubber would immediately enjoy zero import duties when this Agreement comes into force.”
“The Cepa is also a strategic lever for UAE-based companies to optimise Malaysia as a gateway into the Asean market, which in turn, will provide tremendous opportunities for our businesses – particularly the SMEs – through integration into regional supply chains, capacity-building and knowledge sharing via the UAE investors,” said Aziz.
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