UAE, Malaysia Boost Trade With First Gulf CEPA
The United Arab Emirates (UAE) and Malaysia have taken a significant step in their economic partnership with the activation of their Comprehensive Economic Partnership Agreement (CEPA). This marks Malaysia's first trade agreement with a Gulf Cooperation Council (GCC) nation, reinforcing its economic ties with the Arab world.
The CEPA, ratified in 2025, introduces measures to reduce or remove tariffs, streamline customs procedures, and encourage private sector collaboration. It aims to expand economic cooperation across multiple sectors and strengthen long-term commercial ties. The agreement includes a dedicated chapter on the Islamic Economy and promotes sustainable development, technology transfer, and innovation.
Bilateral trade between the UAE and Malaysia has already shown promising growth, reaching $3.3 billion in the first half of 2025, a 30.9 percent increase from the same period last year. Key sectors highlighted for growth include healthcare, artificial intelligence, renewable energy, and logistics. Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, described the ratification as 'a significant milestone in our economic partnership, paving the way for greater collaboration and innovation'.
The CEPA is 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. This aligns with the UAE's broader foreign trade strategy, which seeks $1 trillion in total trade and an $800 billion economy by 2031.
The activation of the CEPA between the UAE and Malaysia is set to boost trade and foster innovation across various sectors. With a shared commitment to sustainable development and technology transfer, both nations look forward to a prosperous and collaborative future.
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