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Al Zeyoudi said the latest milestone reflects productive relations that have developed between the
UAE and Malaysia – and Southeast Asia. “Malaysia is a long-standing and trusted trade partner that,
like the UAE, seeks to enhance its economic prospects through increased trade and targeted
investment.”

The UAE’s Cepa programme aims to increase the country’s non-oil foreign trade to Dh4 trillion by
expanding relations with strategically important markets. It has seen the UAE strengthen ties with
the Asean bloc, with agreements with Indonesia and Cambodia now in operation, each helping to
accelerate bilateral trade.

The Cepa with Malaysia builds on deepening economic ties between the two nations, which in 2023
saw bilateral non-oil trade exceed $4.9 billion. In the first half of 2024, non-oil trade reached $2.5
billion, a 7.0 per cent increase compared to the same period in 2023. Malaysia currently ranks as
the UAE’s 12th-largest Asian trading partner, and fifth among Asean countries, while the UAE is
Malaysia’s second-largest trade partner in the Arab world, accounting for 32 per cent of Malaysia’s
trade with Arab nations. The UAE is also the destination for 40 per cent Malaysia’s merchandise
exports to the Arab world.

Al Zeyoudi stressed that continued progress made by the UAE in concluding Cepas with promising
economies worldwide reflects the forward-looking vision of the nation’s wise leadership and its
directives to build strategic partnerships that increase trade and investment flows and stimulate
sustainable economic growth.
“As the fourth largest economy in the Southeast Asia region, and with economic growth in 2024 set
to outstrip forecasts, Malaysia offers substantial opportunity for our exporters, industrialists, and
business leaders, especially in high-growth sectors such as energy, logistics, manufacturing, and
financial services,” said Al Zeyoudi.

Minister Aziz said the Cepa, Malaysia's first free trade pact with a GCC nation, will enhance trade,
boost investments, and deepen the Malaysia-UAE economic ties. “We view the UAE as a strategic
hub for Malaysian exporters to access markets in the Middle East, North Africa, and certain parts of
Europe, particularly as Malaysian exports such as electrical and electronics, machinery, jewellery,
prepared foodstuff, tropical fruits, palm oil, cocoa, and rubber would immediately enjoy zero
import duties when this Agreement comes into force.”

“The Cepa is also a strategic lever for UAE-based companies to optimise Malaysia as a gateway into
the Asean market, which in turn, will provide tremendous opportunities for our businesses –
particularly the SMEs – through integration into regional supply chains, capacity-building and
knowledge sharing via the UAE investors,” said Aziz.

https://www.khaleejtimes.com/business/economy/uae-malaysia-conclude-cepa-talks