The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Malaysia has officially come into effect today, marking a significant advancement in the trade and investment relations between the two nations.
This agreement, signed in January 2025, provides an effective platform to enhance economic cooperation across various sectors of mutual interest.
It is anticipated that the agreement will double the volume of non-oil bilateral trade, which reached $5.5 billion in 2024. Both sides have set a target to increase non-oil trade to $13.5 billion by 2032. In the first half of 2025, bilateral trade continued to thrive, totaling $3.3 billion—a year-on-year increase of 30.9%.
Additionally, the agreement will enhance economic relations by reducing or eliminating tariffs, improving customs procedures, and fostering cooperation in the private sector.
Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, stated, “The implementation of the Comprehensive Economic Partnership Agreement between the UAE and Malaysia is a historic milestone in the strategic relations between our two friendly countries. It paves the way for further integration and mutual growth. This agreement will not only strengthen trade relations but also open new investment opportunities in key sectors such as healthcare, artificial intelligence, renewable energy, and logistics.”
The CEPA is the first trade agreement between Malaysia and any Gulf Cooperation Council (GCC) country, marking a significant step in enhancing economic relations with the Arab world.
In addition to streamlining trade procedures and expanding access for service exports to markets, the agreement includes a dedicated chapter on the Islamic economy. Its goals are to promote sustainable development, technology transfer, and cooperation in the private sector, thereby solidifying economic relations between the two countries.
The CEPA forms an essential part of the UAE’s foreign trade strategy, aiming to elevate the total trade value to 4 trillion dirhams by 2031 and to double the economy beyond $800 billion by that same year. Since its launch in September 2021, the program has successfully secured agreements with 31 countries, enhancing trade relations and enabling UAE companies to access markets representing nearly a quarter of the world’s population.