UAE set for trade boost as Cepas with Australia and Malaysia take effect

Deals seek to remove barriers to trade and enable greater market access for goods and services

A reclaimer places coal in stockpiles at a port in Newcastle, Australia. Reuters

The UAE's Comprehensive Economic Partnership Agreements (Cepas) with Australia and Malaysia have taken effect in a move expected to help the Emirates boost trade and bolster economic ties with the two countries.

The deal with Australia is set to unlock new avenues for “substantial trade in goods and services, private sector collaboration and investment opportunities across sectors” such as renewable energy, infrastructure, food security and technology, the Ministry of Foreign Trade said on Wednesday.

The Cepa, signed in Canberra in November last year, is expected to elevate annual bilateral trade from $4.2 billion last year to more than $10 billion by 2032, the ministry added.

“The entry into force of the UAE-Australia Cepa marks a pivotal step in enhancing our economic partnership and will lead to new pathways for collaboration and growth,” said Dr Thani Al Zeyoudi, Minister of Foreign Trade.

“This agreement significantly strengthens our trade relations and opens doors for new investment in key sectors such as renewable energy, infrastructure, food security and technology.”

The UAE’s non-oil foreign trade with Australia reached $3.03 billion in the first half of this year, a year on year increase of 33.4 per cent, the ministry said.

The agreement will help boost these numbers by reducing unnecessary barriers to trade, enabling greater market access for goods and services, and creating a robust framework for investment and collaboration, the ministry said.

Australian Prime Minister Anthony Albanese, who is visiting the UAE this week, wrote on X: “Australian produce is the best there is, I want to see it shared with the world. We’ve been working hard to diversify our trading relationships – on October 1 our free trade agreement with the UAE kicks in. It’s fantastic news for Australian producers, workers and for our economy.”

Australia exports many products to the UAE, including alumina, coal, steel, meat, dairy, oil seeds, seafood, canola seeds, nuts and honey.

The agreement is also expected to cut Australian import tariffs on UAE-produced furniture, copper wire, glass containers and plastic.

President Sheikh Mohamed discusses new trade deal with Australian Prime Minister Albanese

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The UAE is Australia's largest trade and investment partner in the Middle East and its 20th largest trading partner globally. The Cepa is Australia’s first trade agreement with a country in the Middle East and North Africa.

The UAE and Australia have a combined investment of approximately $14 billion in each other’s economies and 300 Australian companies already operate in the Emirates across various sectors.

Malaysia deal

The UAE-Malaysia trade deal, which was signed in January, also came into effect on Wednesday.

It is expected to boost bilateral trade, which reached $5.5 billion in 2024 and rose nearly 40 per cent annually to $3.3 billion in the first half of 2025. The two sides have set a target of increasing non-oil trade to $13.5 billion by 2032, the Ministry of Foreign Trade said on Wednesday.

Dr Al Zeyoudi said the agreement would create new investment opportunities in key sectors such as healthcare, artificial intelligence, renewable energy and logistics.

The Cepa is Malaysia’s first trade agreement with a Gulf nation. The deal includes a dedicated chapter on the Islamic economy and aims to enhance sustainable development, technology transfer and private sector collaboration, the ministry said.

The announcements come as the UAE continues to strengthen its trade ties with countries around the world to boost non-oil foreign trade.

The Arab world's second-largest economy is targeting $1 trillion in total trade value by 2031 and aiming to double the size of its economy to surpass $800 billion by the same year, with the Cepa programme being a vital pillar in advancing the UAE's economic goals.

Since its launch in September 2021, the UAE's Cepa programme has concluded agreements with 31 countries.

President Sheikh Mohamed meets Australian Prime Minister – in pictures

President Sheikh Mohamed bin Zayed bids farewell to Anthony Albanese, Prime Minister of Australia, after a meeting at Al Shati Palace. All photos: UAE Presidential Court

Sheikh Mohamed and Mr Albanese stand for a photograph before a meeting at Al Shati Palace

Sheikh Mohamed and Mr Albanese discuss matters of mutual concern

Sheikh Mohamed receives Mr Albanese at Al Shati Palace

Part of the UAE honour guard at Al Shati Palace

The Emirates has signed Cepas with countries including Azerbaijan, Serbia, Malaysia, Angola, New Zealand, Kenya, Ukraine, the Central African Republic, Costa Rica and Mauritius.

Ten of these deals – with India, Indonesia, Israel, Turkey, Cambodia, Georgia, Costa Rica, Mauritius, Serbia and Jordan – have been implemented and are operational, data from the Ministry of Foreign Trade shows.

Agreements with other trading partners, including South Korea, Malaysia, New Zealand, Chile, Kenya, Ukraine, Vietnam, the Republic of Congo, Belarus and Azerbaijan, are still to be implemented. Talks have also concluded with the Philippines, Morocco and Armenia.

The UAE's non-oil foreign trade hit a record Dh3 trillion ($820 billion) last year − up 14.6 per cent year-on-year − with Cepas contributing Dh135 billion, an increase of 42 per cent compared with the previous year. The country's non-oil foreign trade also rose by 24 per cent annually in the first six months of this year.