MY-UAE CEPA Will Also Focus On Developing The Islamic Economy

From Kamarul Ariffin Md Yassin

ABU DHABI, Jan 15 (Bernama) -- The Malaysia-UAE Comprehensive Economic Partnership Agreement (MY-UAE CEPA) signed by Malaysia and the United Arab Emirates (UAE) on Tuesday (Jan 14) will also focus on efforts to develop the Islamic economy.

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the successful signing of a free trade agreement (FTA) with a Gulf Cooperation Council country has opened up opportunities for more agreements with other GCC members and the GCC bloc itself.

“The Cabinet has agreed to begin negotiations for an FTA between Malaysia and the GCC. We have indicated (our intentions) to the GCC, and they have agreed to begin negotiations in May or June,” he told the Malaysian media at the Abu Dhabi Sustainability Week (ADSW) 2025, which is being held at the ADNEC Centre here.

Apart from the UAE, the GCC comprises Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia.

Prime Minister Datuk Seri Anwar Ibrahim, who has been on a three-day working visit to the UAE since Sunday, and UAE President and Abu Dhabi Ruler Sheikh Mohamed bin Zayed Al Nahyan witnessed the Y-UAE CEPA’s signing ceremony at the ADNEC Center.

At the signing ceremony, Malaysia was represented by Tengku Zafrul, while the UAE was represented by its Minister of State for Foreign Trade, Dr Thani Ahmed Al Zeyoudi.

Tengku Zafrul said the MY-UAE CEPA is expected to boost total bilateral trade between the two countries by at least 60 per cent in five years.

The minister said the MY-UAE CEPA is Malaysia’s 17th FTA, and it is the first agreement involving the green and digital economies, two important sectors for Malaysia going forward.

“At the same time, we want to ensure CEPA will also focus on the semiconductor, artificial intelligence, and renewable energy sectors,” he said.

In the first 11 months of 2024, bilateral trade between Malaysia and the UAE amounted to RM39.53 billion, an increase of 8.6 per cent year-on-year.

UAE is Malaysia’s second-largest trading partner in the Middle East, with trade amounting to RM39.63 billion in 2023.

Malaysia is UAE’s fourth largest trading partner among ASEAN member states and the 32nd largest globally.

-- BERNAMA