Page 867 - MOE ENGLISH PR REPORT - FEBRUARY 2025 Part 1

2/25/25, 2:37 PM UAE and Japan Set to Finalize CEPA by Year End
The UAE stands as Japan’s foremost trading partner in the Arab world, contributing considerably to bilateral trade volumes.
Notably, approximately 37 percent of Japan’s total exports to Arab nations originate from the UAE, illustrating a significant

level of economic dependency. Conversely, Japan ranks among the UAE’s top ten trading partners, marking a reciprocal
relationship where both parties derive substantial mutual benefits.

The partnership is grounded not only in economic figures but also in shared values and visions for future development. Both
countries recognize the importance of diversifying their economies and enhancing their roles in a rapidly globalizing world. As

both nations continue to navigate post-pandemic economic recovery, the CEPA presents a golden opportunity to unlock new
potential for trade, investment, and technological collaboration.

The Journey Towards a Comprehensive Agreement

The discussions that initiated the CEPA in September 2024 laid the groundwork for a transformative economic framework. Both
nations have committed to a comprehensive dialogue to address various aspects of the partnership, including tariffs, investment

regulations, and innovative cooperation in technology and sustainability. This multifaceted approach aims not only to deepen
traditional trade ties but also to embrace knowledge exchange and technological advancements, ensuring that both economies
remain at the forefront of global competitiveness.

As these negotiations progress, key sectors have emerged as focal points for collaboration. The energy sector, particularly
renewable energy and technology, is a key area where both nations excel. With the UAE’s ambitious plans for diversifying its

energy portfolio and Japan’s technological prowess, synergies can be found that will benefit both countries. Furthermore,
sectors such as agribusiness, logistics, and advanced manufacturing are also expected to benefit from the CEPA, creating new

jobs and driving economic growth.

Implications for Business Communities

The comprehensive nature of the CEPA is expected to yield substantial benefits for business communities in both nations. By

breaking down trade barriers and facilitating easier access to each other’s markets, businesses will find greater opportunities for
export growth, technology sharing, and investment. The ongoing dialogue also suggests that small and medium-sized
enterprises (SMEs) will play a crucial role in this partnership, as both nations seek to bolster innovation and entrepreneurship.

The UAE, with its strategic geographic location as a gateway between the East and the West, is particularly well-positioned to

serve as a conduit for Japanese goods and services, while simultaneously providing an essential platform for UAE companies to

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