UAE continues to expand its network of economic, investment partnerships

The UAE continues to expand its network of economic and investment partnerships with strategic markets around the world, strengthening investment flows, opening new horizons for trade, and supporting sustainable growth objectives.

The UAE is seeking to diversify its economic partners and enhance cooperation with promising emerging markets across various regions, including Latin America. In 2025, a number of Comprehensive Economic Partnership Agreements (CEPAs) with Latin American countries entered into force, as part of the UAE’s efforts to boost trade and mutual investment.

Among the most notable agreements is the CEPA with the Republic of Costa Rica, which came into effect on 1st April 2025. The agreement aims to eliminate or reduce customs duties, facilitate trade in goods and services, and open broader investment opportunities for small and medium-sized enterprises.

The CEPA with the Republic of Chile also recently entered into force in November 2025, following its signing in July of last year. The agreement seeks to enhance non-oil trade and facilitate mutual investments in strategic sectors, including infrastructure, energy, logistics services, food security, and technology. Negotiations are also continuing to conclude comprehensive economic agreements with other countries in the region, including the Republic of Peru.

Karla Flores, Director of InvestChile, said that the entry into force of the Comprehensive Economic Partnership Agreement between the UAE and Chile represents a qualitative leap in economic relations between the two countries.

She noted that the agreement will help accelerate the interest of UAE companies and sovereign wealth funds in the investment opportunities available in Chile, while paving the way for expanding the stock of UAE foreign direct investment in the coming phase.

In statements to the Emirates News Agency (WAM), she explained that the UAE is a key economic partner for Chile within the Gulf region, adding that the agreement builds on a solid institutional foundation that includes the Double Taxation Avoidance Agreement in force since 2023 and the Customs Cooperation Agreement implemented since 2024, both of which enhance investor confidence and support the business environment.

She noted that the agreement is not limited to reducing customs tariffs, but rather provides an integrated framework to promote investment and develop value chains, in addition to establishing mechanisms for dialogue between governments and the private sector, thereby supporting the transition toward long-term investment partnerships with tangible economic and developmental impact.

Meanwhile, 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 US$270 million, while in the first half of 2025, it increased to US$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 US$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 US$800 billion by the same year.

WAM