UAE trade deals with Malaysia and Australia come into force

UAE’s Comprehensive Economic Partnership Agreement (CEPA) with Malaysia, Australia come into force on October 1, 2025, marking a major advancement in trade and investment relations between the countries.

The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Malaysia has officially come into force on Wednesday.

The landmark agreement, signed in January 2025, will provide a robust framework for increased economic cooperation across various sectors.

The CEPA is projected to more than double bilateral trade, which reached $5.5 billion in 2024. The two sides have set a target of increasing non-oil trade to $13.5 billion by 2032.

In the first half of 2025, bilateral trade between the UAE and Malaysia reached $3.3 billion, representing a 30.9 per cent year-on-year increase.

The agreement will further strengthen the economic ties between the UAE and Malaysia by removing or reducing tariffs, enhancing customs procedures, and promoting private sector collaboration.

At the same time the Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Australia has officially come into force, heralding a new era of economic collaboration between the two nations.

This agreement is expected to unlock new avenues for substantial trade in goods and services, private sector collaboration, and investment opportunities across a wide array of sectors.

Dr. Thani Bin Ahmed Al Zeyoudi, Minister of Foreign Trade, stated, “The ratification of the UAE-Malaysia CEPA is a significant milestone in our economic partnership, paving the way for greater collaboration and innovation. This agreement will not only enhance trade relations but also unlock new investment avenues in key sectors such as healthcare, artificial intelligence, renewable energy, and logistics.”

The CEPA is Malaysia’s first trade agreement with a Gulf Cooperation Council (GCC) nation, representing an important step in enhancing economic ties with the Arab world.

In addition to streamlining trade procedures and increasing market access for service exports, the agreement also includes a dedicated chapter on the Islamic Economy and aims to enhance sustainable development, technology transfer, and private sector collaboration, further solidifying the economic ties between the two countries.

The CEPA programme is integral to the UAE’s foreign trade strategy, targeting $1 trillion in total trade value by 2031 and aiming to double the size of the economy to surpass $800 billion by the same year.

Since its launch in September 2021, the CEPA programme has successfully concluded agreements with 31 countries, enhancing trade relations and access for UAE businesses to markets that comprise nearly a quarter of the world’s population.

With the CEPA now ratified by UAE and Australia and officially in force, it is expected to elevate annual bilateral trade between UAE and Australia from $4.2 billion in 2024 to over $10 billion by 2032. In the first half of 2025, the UAE’s non-oil foreign trade with Australia reached $3.03 billion, a year-on-year increase of 33.4 per cent.

The agreement will help boost these numbers by reducing unnecessary barriers to trade, facilitating greater market access for goods and services, and creating a robust framework for investment and collaboration to increase opportunities in priority sectors.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, expressed confidence in the agreement’s impact, stating, “The entry into force of the UAE-Australia CEPA marks a pivotal step in enhancing our economic partnership and will lead to new pathways for collaboration and growth.”

He added that this agreement significantly strengthens the trade relations and opens doors for new investment in key sectors such as renewable energy, infrastructure, food security, and technology.

The UAE is Australia’s leading trade partner in the Middle East and its 20th largest partner globally. The CEPA is Australia’s first trade agreement with a country in the Middle East and North Africa (Mena) region.

With a combined investment of approximately $14 billion in each other’s economies and 300 Australian companies already operating in the UAE market across various sectors, the potential for substantial growth in economic relations is significant.

The UAE’s CEPA programme is a cornerstone of its economic strategy, targeting $1 trillion in total trade value by 2031 and aiming to double the size of the economy to exceed $800 billion by the same year.

The UAE-Australia CEPA is one of 31 agreements concluded to date, enhancing trade relations and expanding access for UAE businesses to key markets around the globe.

WAM