Today's Edition
TAARIQ HALIM (ABU DHABI)
The UAE’s participation as Guest of Honour at the Asia-Pacific Economic Cooperation (APEC) forum — hosted in Gyeongju, South Korea, this week — will seek to strengthen cooperation and boost trade with the bloc’s 21 member states.
On behalf of UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, is set to lead the UAE delegation to the APEC forum, taking place from October 31 to November 1.
The UAE is taking part in the event as a guest of honour at the invitation of Lee Jae-myung, President of the Republic of Korea.
Established in 1989, the Asia-Pacific Economic Cooperation counts among its key members economic powerhouses the US, China, Japan, and South Korea, as well as Australia, Canada, Indonesia, and Singapore — which collectively represent around 60% of global GDP and over 40% of global trade.
The forum focuses on achieving balanced, inclusive, and sustainable growth for the bloc’s member states.
In recent years, the total volume of non-oil trade between the UAE and APEC member economies has ballooned to Dh874 billion. The catalyst for this growth has been the UAE’s Comprehensive Economic Partnership Agreements (CEPA) programme, which is designed to stimulate non-oil foreign trade beyond Dh4 trillion by 2031 by removing or reducing tariffs, enhancing market access to exporters, eliminating barriers to trade, and establishing platforms for private sector collaboration.
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 make up nearly a quarter of the world’s population.
The UAE has to date entered into CEPAs with five APEC members — Indonesia, New Zealand, Australia, Malaysia and South Korea.
South Korea
On May 19, 2024, the UAE and South Korea signed the CEPA, making the UAE the first Arab nation to sign a free trade deal with South Korea.
The agreement aimed to boost investment and bilateral trade by removing tariffs on more than 90% of all imports between the two countries for 10 years.
The CEPA’s focus areas are: energy and resources; healthcare; advanced industries; smart agriculture; bioeconomy; and included provisions for maritime transport, railway infrastructure, intellectual property protection, joint projects in Africa, and cultural and online gaming services.
Total trade value between the UAE and South Korea reached Dh84.7 billion ($23.1 billion) by the end of 2024, an 11% increase from 2023. Non-oil trade increased by 42.5% in 2024, showing the diversification of the bilateral trade relationship.
Indonesia
The UAE-Indonesia CEPA, which came into effect on September 1, 2023, aimed to enhance the bilateral trade between the two countries and raise its total value from around $3 billion in 2021 to $10 billion annually within five years by reducing or removing tariffs on a wide range of goods and services, which would create new opportunities for exporters and companies in both countries.
Businesses would benefit from: better market access for UAE products to Indonesian market covering more than 90% of tariff lines and 94% value of trade with Indonesia; the removal of unnecessary technical barriers for UAE and Indonesian exporters; enhanced access for UAE businesses to Indonesian government procurement opportunities; and support for UAE companies through a 10% price preference in Indonesian government procurement tenders.
The CEPA includes provisions for a wide range of goods and services in several key sectors including agriculture, logistics, energy and renewable energy, infrastructure, digital economy and advanced technology, healthcare, Islamic economy, and halal products.
In 2023, total bilateral trade between the UAE and Indonesia was valued at approximately $6 billion — based on $2.42 billion in UAE exports and $3.51 billion in Indonesian exports — $4.1 billion of this was non-oil trade.
This trade volume is projected to double to $10 billion annually by 2028, with the impetus generated by the CEPA.
New Zealand
The UAE-New Zealand CEPA is one of the UAE’s most expansive CEPAs to date, covering areas that include economic cooperation with Māori and Indigenous Peoples, sustainable development, women’s economic empowerment, and transparency.
The agreement, which was signed in Abu Dhabi on January 14, 2025 and came into effect on August 28, builds on growing economic relations between the two countries, and contributes to reducing barriers to trade, enhancing customs procedures, and facilitating increased private sector collaboration and investment.
The CEPA’s key benefits are: locking in 0% tariff rates for almost all goods; flexible rules of origin; streamlined customs procedures and simplified product requirements that lower costs and save time; new opportunities for service suppliers; secure online environment for customers to engage in digital trade; enforcement of intellectual property rights; government procurement opportunities for businesses from both partners; and promotion and facilitation of investment.
In 2024, trade between the UAE and New Zealand totalled approximately $762 million. The new CEPA is projected to significantly increase annual bilateral trade, aiming to reach over $5 billion by 2032.
Australia
The UAE-Australia CEPA — Australia’s first trade agreement with a MENA region country — was signed on November 6, 2024, and came into force on October 1, 2025. The agreement marked a new chapter in bilateral relations with Australia aimed at increasing trade, promoting private-sector collaboration, and facilitating investment flows.
Together with the CEPA, six bilateral arrangements were signed, seeking to further strengthen economic ties. These are the Agreement to Promote and Protect Investments, alongside five investment cooperation memorandums of understanding to facilitate and promote two-way investment in the priority sectors of green and renewable energy, infrastructure and development, data centres and artificial intelligence projects, minerals and mining, and food and agriculture.
The highlights of the UAE-Australia CEPA include: removal of tariffs on almost 99% of goods; updating rules of origin and the customs and trade facilitation provisions; unlocking market potential in services sectors; access to public sector contracts in key sectors; increasing competition and enhancing consumer protection; secure online environment for customers to engage in digital trade; supporting innovation and protection of intellectual property rights; supporting environmental concerns and sustainable development; creating dedicated pathways for cooperation on trade-related issues to better support private sector engagements and SMEs; promoting and facilitating investment.
In 2024, UAE-Australia non-oil trade reached $4.2 billion, and the new CEPA is expected to more than double this figure to over $10 billion by 2032.
Australia’s imports from the UAE were $1.4 billion in 2024, while the UAE’s imports from Australia were $3.42 billion in 2023, with non-oil trade growing substantially in recent periods.
Malaysia
The UAE-Malaysia CEPA, signed in January 2025, 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.
The agreement is set to further strengthen the economic ties between the countries by removing or reducing tariffs, enhancing customs procedures, and promoting private sector collaboration.
The CEPA, Malaysia’s first trade agreement with a GCC nation, includes a dedicated chapter on the Islamic Economy, and aims to enhance sustainable development, technology transfer, and private sector collaboration.
Total bilateral trade between the UAE and Malaysia reached $5.5 billion in 2024, with non-oil trade increasing by 30.9% to $3.3 billion in the first half of 2025.
The CEPA aims to double bilateral trade, targeting $13.5 billion in non-oil trade by 2032. Key exports from the UAE to Malaysia include crude petroleum, while Malaysia’s top exports to the UAE are jewellery and gold.
