The UAE and Japan have concluded negotiations for a Comprehensive Economic Partnership Agreement (Cepa) as they seek to further boost trade and investment ties.
They agreed the final provisions of the deal, which is the first of its kind Japan has concluded with an Arab country, the UAE's Ministry of Foreign Trade said in a statement on Friday.
The announcement was made during an official visit to Japan by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and the UAE’s Special Envoy to Japan. He was accompanied by Dr Thani Al Zeyoudi, Minister of Foreign Trade.
“The agreement will open new avenues for co-operation in advanced industries, technology and resilient supply chains, providing greater opportunities for both our private sectors to boost investment and innovation,” Dr Al Jaber said.
The UAE and Japan have been strengthening economic ties, with bilateral non-oil trade reaching $20.3 billion in 2025, growing by 16.7 per cent compared to 2024.
The UAE is Japan’s top trading partner across the Middle East and Africa, accounting for 39 per cent of the Asian state's total trade with Arab and African countries.
The UAE’s Cepa programme is central to its foreign trade strategy. Since its launch in September 2021, the UAE has concluded agreements with more than 35 high-growth economies, enhancing access to markets representing nearly a quarter of the world’s population.
“The positive outcomes of our Cepa negotiations with Japan, one of the world’s largest economies and a key member of the G7, are a significant step forward in enhancing UAE-Japan relations,” Mr Al Zeyoudi said.
“By removing trade barriers and facilitating increased investment flows, this Cepa will unlock new avenues for our private sectors, fostering lasting partnerships that benefit both countries and contribute to our sustainability goals and shared prosperity.”
The UAE’s non-oil foreign trade surged 26 per cent annually last year to exceed $1 trillion for the first time, as the Arab world’s second-largest economy continues to boost trade through Cepas.
Non-oil exports during the year rose 45 per cent to Dh813 billion ($221 billion), Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said on X in January.
“These figures were targets we announced three years ago that we would reach by 2031 … 95 per cent of them have been achieved ahead of schedule by five years,” Sheikh Mohammed said.
The UAE’s non-oil exports to the 14 countries with whom a Cepa is in force recorded a value of Dh175.5 billion in 2025, a growth of 18.2 per cent, and contributed 21.6 per cent of total exports last year.
Trade with India rose 14.7 per cent in 2025, fuelled by the Cepa that came into effect in May 2022.
