ABU DHABI: The United Arab Emirates signed trade agreements with Malaysia, Kenya and New Zealand on Tuesday, the final step before the deals can be ratified and implemented, as part of efforts by the Gulf state to strengthen its post-oil economy plans.
Since 2021, the UAE has initiated a raft of bilateral trade, investment and cooperation deals – called Comprehensive Economic Partnership Agreements (CEPAs) – to reduce its dependence on fossil fuels and bolster long-term growth prospects.
So far it has negotiated deals with countries ranging from Asian giants India and Indonesia to previous political foes Israel and Turkey, as well as smaller states across continents.
“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,” Thani Al Zeyoudi, the UAE’s trade minister told Reuters on the sidelines of Abu Dhabi Sustainability Week.
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Zeyoudi said that discussions with Malaysia included potential investments in data centres and artificial intelligence, which will complement the CEPA, while logistics and ports, food security and pharmaceuticals are also targeted sectors for trade.
Non-oil bilateral trade reached $4.9 billion in 2023 and stood at $4 billion in the first nine months of 2024, according to figures carried by state news agency WAM.
Zeyoudi said Kenya will be a gateway to East Africa for the UAE and would provide a basis for further and bigger agreements with the whole bloc, which he said would start immediately.
The UAE-New Zealand trade deal will remove duties on 98.5% of New Zealand’s exports, with that proportion expected to rise to 99% within three years.
Looking ahead, Zeyoudi said the UAE will “hopefully” kick off bilateral talks for a trade deal with the European Union this year, a move which has the support of many EU members.
Negotiating bilaterally, the UAE can advance its economic and political priorities faster.
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