The UAE and Malaysia have announced the launch of CEPA negotiations as it is revealed non-oil foreign trade between the countries over a span of 10 years amounted to AED160.2bn ($44bn), according to data from the Federal Competitiveness and Statistics Centre (FCSC).
Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Tengku Zafrul Aziz, Minister of Investment, Trade and Industry of Malaysia, signed a joint statement agreeing to launch negotiations to establish a Comprehensive Economic Partnership Agreement (CEPA) between the two countries.
UAE-Malaysia trade
Imports accounted for 76 per cent of the total trade between the two countries, reaching AED 121.6bn.
On the other hand, exports constituted 16.5 per cent, valued at AED26.5bn, while re-exports made up 7.5 per cent, amounting to AED12bn.
Dr. Al Zeyoudi underlined the developing relations between the UAE and Malaysia, stating that the negotiations have built upon strong growth in bilateral trade and investment over recent years.
He said: “Non-oil trade between the UAE and Malaysia continues its upward trajectory over the past five years, reaching $4.6bn in 2022, a growth of 5 per cent compared to 2021, and up 31 per cent and 18 per cent compared to 2020 and 2019, respectively.
“Today, the UAE is Malaysia’s 17th trade partner globally and the second in the Middle East, accounting for 32 per cent of Malaysia’s trade with Arab countries. The UAE is also the first destination for Malaysian merchandise exports to Arab countries, accounting for 40 per cent of its exports to the region.
“The other way, Malaysia ranks eighth globally for UAE exports and 19th in re-exports.”
On the growing investment relations between the two countries, Al Zeyoudi highlighted that the value of Malaysian investments in the UAE amount to $150m across sectors of industry, building and construction, real estate, trade, transport, storage, financial activities, insurance, and professional and technical activities, while UAE investments in Malaysia amount to more than $220m, including more than $51m in the industrial sector.
Al Zeyoudi stressed that the Comprehensive Economic Partnership Agreement with Malaysia comes as part of the UAE’s plans to expand its network of trade partners with strategically important markets, noting that Malaysia is the fourth largest economy in the Southeast Asian region and that its economy continues to achieve record growth rates owing to the strong global demand for its electronics products in particular.
He also underscored that the agreement between the UAE and Malaysia will contribute to the consolidation of trade and investment relations between the two friendly countries, launching a new era of partnership that will accelerate opportunities for the business communities in the two countries, especially in priority sectors.
The negotiations with Malaysia are the latest under the United Arab Emirate’s ambitious foreign trade agenda, which has so far seen the conclusion of four CEPAs with:
- India
- Israel
- Indonesia
- Turkey
Agreements with India and Israel have been entered into force, while those with Indonesia and Turkey are soon to be implemented.
Additional agreements with Georgia and Cambodia are also soon to be signed, and the United Arab Emirates is currently in talks with more markets of strategic importance at the regional and global level.
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