UAE-Malaysia Comprehensive Economic Partnership Agreement Enters in to Force

• The CEPA between the UAE and Malaysia is expected to increase bilateral trade to US$13.5 billion by 2032, enhancing economic collaboration and investment opportunities.
• HE Al-Zeyoudi: “The implementation of the UAE-Malaysia CEPA is a significant milestone in our economic partnership, paving the way for greater collaboration and innovation. This agreement will not only enhance trade relations but also unlock new investment avenues in key sectors.”

Abu Dhabi, UAE – 1^st October, 2025: The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Malaysia has officially come into force, marking a major advancement in trade and investment relations between the two nations. The landmark agreement, signed in January 2025, will provide a robust framework for increased economic cooperation across various sectors.

The CEPA is projected to more than double bilateral trade, which reached US$5.5 billion in 2024. The two sides have set a target of increasing non-oil trade to US$13.5 billion by 2032. In the first half of 2025, bilateral trade reached US$3.3 billion, representing a 30.9% year-on-year increase. The agreement will further strengthen the economic ties between the UAE and Malaysia by removing or reducing tariffs, enhancing customs procedures, and promoting private sector collaboration.

His Excellency Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, stated, “The ratification of the UAE-Malaysia CEPA is a significant milestone in our economic partnership, paving the way for greater collaboration and innovation. 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."

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, further solidifying the economic ties between the two countries.

The CEPA program is integral to the UAE’s foreign trade strategy, targeting US$1 trillion in total trade value by 2031 and aiming to double the size of the economy to surpass US$800 billion by the same year. Since its launch in September 2021, the CEPA program 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.