UAE targets strategic partnership with the Mercosur economic bloc

ASUNCIÓN: On behalf of President His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, participated in the Mercosur Summit hosted in Asunción, the capital of the Republic of Paraguay, which brought together the leaders and heads of government of the bloc’s member states and partners.

Delivering the UAE’s address to the summit, Al Zeyoudi conveyed the greetings of President His Highness Sheikh Mohamed bin Zayed Al Nahyan to the leaders of the Mercosur countries, along with His Highness’s wishes for continued progress and prosperity for the bloc’s nations and peoples.

He affirmed the UAE’s commitment to strengthening cooperation with the Mercosur countries and to consolidating a strategic partnership that the UAE views as a central pillar of a shared economic future with the bloc.

In his address, Al Zeyoudi noted that the world is witnessing rapid geopolitical shifts that are reshaping the global economy, presenting the UAE and the Mercosur countries with an opportunity to build a balanced and sustainable economic partnership founded on common interests and a shared vision for the future.

He emphasised the importance of directing strategic investment toward modern technologies, future industries and new energy sources, alongside investment in skills and knowledge, as the basis for sustainable economic growth, stressing that trade remains the principal engine of growth, innovation and economic diversification.

Al Zeyoudi added that the UAE reaffirms its commitment to concluding a Comprehensive Economic Partnership Agreement with the bloc as a strategic framework that allows both sides to realise the full potential of their economic relationship.

He noted that non-oil trade between the UAE and the Mercosur countries reached $6.2 billion in 2025, with investments and joint projects delivering tangible added value to the economies of the bloc’s member states.

He explained that discussions between the UAE and the Mercosur countries extend beyond exploring new areas of cooperation to shaping the next phase of the partnership, including strengthening the resilience of food value chains, supporting the energy transition, and developing logistics linkages that open new markets for industries and exporters on both sides.

Al Zeyoudi also pointed out that the global geopolitical developments over the past four months have underscored the importance of close international partnerships and the need to maintain an open global trading system based on international rules. He stressed that the time is now for UAE and Mercosur countries to build a partnership that reflects the ambitions of their economies, achieves sustainable benefits for the business sector on both sides, and benefits their peoples.

The UAE’s participation in the Mercosur Summit forms part of its broader strategy to expand its network of comprehensive economic partnerships with major economic blocs and to strengthen its presence in global markets, in line with its vision to consolidate trade and investment as drivers of sustainable growth.

Meanwhile President Santiago Peña of the Republic of Paraguay on Tuesday received Dr. Thani Bin Ahmed Al Zeyoudi, Minister of Foreign Trade, and an accompanying delegation during their official visit to Asunción, in the presence of Dr. Sagheer Al Ahbabi, UAE Ambassador to Paraguay.

Al Zeyoudi conveyed the greetings of President His Highness Sheikh Mohamed bin Zayed Al Nahyan; His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai; and His Highness Sheikh Mansour Bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, to President Peña, along with their wishes for continued progress and prosperity for Paraguay and its people.

President Peña conveyed his greetings to the UAE leadership and affirmed Paraguay’s commitment to expanding trade and investment cooperation with the UAE, in line with the growing momentum of bilateral relations and the strengthening economic partnership between the two countries.

He stressed the importance of leveraging the competitive advantages and strategic positions of Paraguay and the UAE to enhance trade and investment flows, create new opportunities for private sector cooperation, and support the shared economic and development goals of both countries. Al Zeyoudi led a high-level UAE delegation comprising government officials, business leaders and representatives of several Emirati companies.

During the visit, he held meetings with senior Paraguayan officials, including Rubén Ramírez Lezcano, Minister of Foreign Affairs; Marco Riquelme, Minister of Industry and Commerce; and Rodrigo Maluff, Ministerial Advisor at the Civil Cabinet of the Presidency of the Republic of Paraguay.

The visit also featured the UAE-Paraguay Business Forum, attended by President Peña, Al Zeyoudi, Riquelme, Maluff and senior government officials, business leaders and private sector representatives from both countries.

Participants explored opportunities in priority sectors, including technology, digital services, renewable energy, agriculture, food industries, logistics, transport, mining, healthcare and financial services, while highlighting the private sector’s key role in advancing economic cooperation and translating opportunities into sustainable partnerships. Discussions focused on expanding cooperation in value-added sectors, strengthening trade and investment partnerships, and building on the growing momentum in bilateral relations, reinforcing the two countries’ positions as economic partners linking the Middle East and South America. Al Zeyoudi said Paraguay is an important economic partner for the UAE in South America and offers significant opportunities to expand cooperation in sectors that support economic diversification and create new growth platforms for the private sector.

WAM