In its push to diversify the economy and boost non-oil trade, the UAE is expanding its network of Comprehensive Economic Partnership Agreements (CEPAs).
Recent trade deals with Malaysia, Kenya, and New Zealand highlight the country’s effort to strengthen its role as a global trade and logistics hub. This article will discuss the impact of these agreements and explore what these developments bring for different businesses in the UAE.
UAE CEPAs in 2025
Strengthening its trade deal network, the UAE has signed CEPAs with the below countries:
1. Malaysia
In effect, bilateral trade between Malaysia and the UAE is forecasted to grow by at least 60% over the next five years. Already one of the UAE’s top trade partners in the Association of Southeast Asian Nations (ASEAN) region, Malaysia recorded US$4.9 billion in non-oil trade with the UAE in 2023 and an additional US$4 billion in the first nine months of 2024. The UAE also serves as Malaysia’s second-largest partner in the Middle East.
The Malaysia-UAE CEPA will help sectors such as artificial intelligence (AI) and renewable energy while providing UAE businesses with greater opportunities to expand in the ASEAN market.
2. Kenya
With non-oil trade already up by 26.4% to US$3.1 billion in 2023 and Kenya’s economy growing steadily at around 5%, the Kenya-UAE CEPA is a promising step toward even greater economic cooperation.
This agreement will allow UAE investors to participate more actively in sectors like infrastructure, healthcare, logistics, mining, information and communications technology, food production, and tourism. Businesses can also expect improved access to Kenya’s market, especially in the service and agricultural sectors.
3. New Zealand
Additionally, the New Zealand-UAE CEPA may offer another starting point for cross-border business. Under this agreement, 100% duty-free access will be granted to UAE imports. This means businesses will not have to pay tariffs when entering the New Zealand market, which may lower costs and make it easier to exchange goods and services.
With projections indicating that bilateral trade could reach US$5 billion by 2032, this agreement can unlock more investment opportunities and support market expansion efforts from the UAE. Sectors that may benefit include agriculture, advanced technology, clean energy, and financial services.
How many CEPAs does the UAE has in force?
Since its first CEPA with India in 2022, the UAE has concluded agreements with over 20 countries and international blocs, with several pending implementation. At present, active CEPAs include the following:
Among the CEPAs awaiting implementation are those with:
- Malaysia
- Kenya
- New Zealand
- Ukraine
- Australia
- Vietnam
- Jordan
- Mauritius
- Columbia
- Costa Rica
- Chile
- South Korea
- Serbia
- Central African Republic
Other countries such as the United Kingdom (UK) are also in talks to strengthen economic partnership with the UAE. With more partnerships on the horizon, this can create a more business-friendly environment for businesses in multiple sectors.
Economic impact of UAE CEPAs
Through collaboration with various countries and international blocs, these agreements reduce tariffs and simplify customs procedures. In doing so, they reinforce the UAE’s economic diversification efforts while increasing the competitiveness of businesses in manufacturing and other industries.
Ongoing CEPAs have fuelled growth in sectors like agriculture, financial services, logistics, re-export services, clean and renewable energy, and technology. Already, the UAE has reached a major milestone when foreign trade hit AED3 trillion at the end of 2024.
This places the nation firmly on track to meet its AED4 trillion goal by 2031, and upcoming CEPAs could further accelerate this progress. The CEPAs also form part of the larger "Projects of the 50" initiative, a range of developmental and economic projects designed to drive growth in the UAE.
How do these CEPAs affect your business?
The UAE’s newly signed CEPAs with Malaysia, Kenya, and New Zealand mark a significant expansion of the country’s global trade network. Each of these agreements offers unique trade and investment opportunities, lowering barriers to entry and creating new possibilities for businesses in the UAE.
Greater market access and lower tariffs
For companies engaged in international trade, one of the most immediate benefits of these CEPAs is the reduction or elimination of tariffs on key goods. This can make trade more competitive for UAE businesses and reinforce the country’s role as a key gateway for expanding into the Gulf Cooperation Council (GCC) region. With this promising outlook, more multinational firms may consider establishing distribution centres or regional headquarters in Dubai and the wider UAE to capitalise on cost efficiencies.
For example, the agreement with Malaysia would lower costs for key imports such as electronics, food products, and palm oil while improving market access for UAE exporters. The Kenya CEPA enhances trade in agricultural goods, logistics, and manufacturing, making it easier and more cost-effective for UAE businesses to import tea, coffee, and fresh produce. Meanwhile, the New Zealand agreement strengthens access to high-quality dairy, meat, and sustainable agricultural products, encouraging potential agribusiness partnerships between the two nations.
Improved supply chain efficiency
Beyond tariff reductions, these agreements aim to simplify customs procedures and reduce bureaucracy, leading to faster trade flows and lower compliance costs. Businesses reliant on imports such as manufacturers, retailers, and food distributors can expect fewer delays and improved logistics.
The agreements are also likely to encourage UAE companies to rethink their supply chain strategies. With more seamless trade between the UAE and its CEPA partners, businesses may find it advantageous to diversify their sourcing strategies by procuring raw materials and goods from these countries.
New investment and expansion opportunities
CEPAs extend beyond trade in goods, providing businesses with improved access to investment opportunities. For example, Malaysia’s strength in Islamic finance and digital innovation presents opportunities for UAE investors and fintech firms to collaborate.
In Kenya, the agreement enhances investment prospects in infrastructure, energy, and logistics, aligning with the UAE’s expertise in port development and transport. Meanwhile, New Zealand’s focus on renewable energy and sustainable agriculture creates potential for UAE businesses in clean energy and agritech to explore joint ventures and knowledge-sharing initiatives.
What should businesses do next?
To explore these new opportunities, businesses should assess how these trade agreements align with their operations and expansion plans. Companies importing goods may review the new tariff structures to identify potential cost savings, while those looking to scale internationally can explore the regulatory benefits of investing in the UAE and other countries.
With a goal of reaching AED4 trillion in non-oil foreign trade, the UAE is actively expanding its trade deal network to open new avenues to conduct business. To learn how you can leverage these opportunities, you may get in touch with our team for more information.
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