UAE, Malaysia Boost Economic Ties with CEPA Activation
The United Arab Emirates (UAE) and Malaysia have taken a significant step in boosting their economic ties with the activation of the Comprehensive Economic Partnership Agreement (CEPA). This marks Malaysia's first trade pact with a Gulf Cooperation Council nation, expanding its reach into the Arab world.
The CEPA, signed earlier this year, aims to expand economic cooperation across multiple sectors and strengthen long-term commercial ties between the two nations. Key sectors highlighted for growth under the agreement include healthcare, artificial intelligence, renewable energy, and logistics. The UAE's Minister of Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, described the ratification as 'a significant milestone' in UAE-Malaysia economic partnership.
The CEPA introduces measures to reduce or remove tariffs, streamline customs procedures, and encourage private sector collaboration. These provisions are expected to more than double overall trade, which stood at $5.5 billion in 2024, with a target of raising non-oil trade to $13.5 billion by 2032. Bilateral trade between the UAE and Malaysia has already seen a 30.9 percent increase in the first half of 2025, reaching $3.3 billion.
The UAE's CEPA programme has proven successful, concluding agreements with 31 countries since 2021. This includes notable pacts with India and Azerbaijan, providing market access for domestic businesses across a quarter of the global population.
The CEPA between the UAE and Malaysia is set to drive growth in various sectors, with a focus on sustainable development, technology transfer, and innovation. It also includes a dedicated chapter on the Islamic Economy, further cementing the partnership's unique aspects. As the UAE continues to sign CEPAs with over 20 countries, this agreement with Malaysia reinforces the UAE's commitment to expanding its economic influence globally.
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