UAE-Malaysia CEPA enters into force

The Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Malaysia has officially come into force, with an aim to increase non-oil trade to $13.5 billion by 2032.

The landmark agreement, signed in January 2025, is also projected to more than double bilateral trade, which reached $5.5 billion in 2024.

Bilateral trade, during the first half of 2025, reached $3.3 billion, representing a 30.9 per cent year-on-year increase.

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

"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," said Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade.

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.

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.