UAE-Chile Comprehensive Economic Partnership Agreement enters into force

The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Chile has officially entered into force, marking a transformative step in the economic relations between the two nations.

The pivotal agreement is set to significantly enhance bilateral trade and create new investment opportunities across key sectors, reflecting the shared ambitions of both countries to achieve mutually beneficial, sustainable economic growth.

In 2024, the UAE’s non-oil foreign trade with Chile reached $270 million, while in the first half of 2025, it increased to $153 million, a 7.1% year-on-year rise.

With the CEPA now in force, it is projected that bilateral trade will exceed US$500 million within five years, driven by enhanced market access and cooperation in key sectors.

Dr. Thani Al Zeyoudi, Minister of Foreign Trade, expressed optimism about the agreement's future impact, stating, "The implementation of the UAE-Chile CEPA marks a significant milestone in our economic relations, paving the way for enhanced collaboration and investment opportunities in vital sectors such as renewable energy, agriculture, tourism, and infrastructure. This agreement solidifies our shared commitment to fostering open, rules-based trade, which is essential for achieving our mutual economic goals."

Chile, with a GDP exceeding $300 billion, boasts strong manufacturing, financial services, energy, tourism, and agriculture sectors. The country is a leading global producer of copper and lithium, presenting rich opportunities for UAE investors.

The CEPA is designed to facilitate increased two-way investment flows, expanding on existing UAE investments in Chilean ventures, such as Abu Dhabi-based ADQ's recent acquisition of Verfrut, a key fruit exporter, and ADIA’s investment in MUT (Mercado Urbano Tobalaba) - the first urban market in Chile.

The UAE-Chile CEPA will further bolster the UAE’s role as a global supply-chain hub, connecting South America with markets in Africa, Europe, and Asia.

In addition to facilitating trade in goods, the agreement will also expand trade in services and stimulate new opportunities in logistics, maritime, travel, tourism, and aviation services.

The CEPA is also expected to accelerate investment in critical infrastructure, such as roads and ports, and support the UAE's food security objectives by enhancing collaboration in agriculture.

The CEPA programme is integral to the UAE’s foreign trade strategy, targeting US$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 32 agreements, enhancing trade relations and access for UAE businesses to markets that comprise nearly a quarter of the world’s population.

 WAM