Abu Dhabi: The Malaysia-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (MY-UAE CEPA) is projected to enhance bilateral trade by at least 60% within the next five years, contributing to sustainable economic growth for both nations. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz emphasized the CEPA’s role in fostering comprehensive economic cooperation through trade facilitation and expanded market access between Malaysia and the UAE.
According to BERNAMA News Agency, the UAE serves as a crucial trade hub for the Middle East and North Africa (MENA) region. The landmark signing of the MY-UAE CEPA, which took place in Abu Dhabi on January 14, 2025, marks Malaysia’s first free trade agreement with a West Asian country. Tengku Zafrul highlighted the agreement’s potential to position Malaysia as a dynamic trade and investment hub, opening new opportunities for Malaysian businesses and creating high-value jobs.
The minister also held a bilateral meeting with UAE Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, to discuss the CEPA’s implementation and explore potential trade and investment areas of mutual interest. They also discussed expectations from the upcoming ASEAN-Gulf Cooperation Council (GCC)-China Summit scheduled for May 2025 during Malaysia’s ASEAN chairmanship.
The swift 11-month negotiation period for the CEPA underscores the commitment of both nations to strengthen economic cooperation. The agreement is anticipated to make Malaysia a gateway for UAE businesses to access the ASEAN market.
The Malaysian Investment Development Authority (MIDA), under the Ministry of Investment, Trade and Industry (MITI), facilitated meetings between Prime Minister Datuk Seri Anwar Ibrahim and Abu Dhabi’s sovereign wealth funds, including the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company. Key sectors for collaboration include renewable energy, artificial intelligence, and the semiconductor industry. ADIA also expressed interest in collaborating with Global Infrastructure Partners on the Malaysia Airport Holdings Bhd transformation exercise.
Additionally, Malaysia and the UAE signed a memorandum of understanding for investment cooperation in data center projects, which is expected to leverage Emirati expertise and capital to enhance Malaysia’s economic development.
In 2023, the UAE was Malaysia’s second-largest trading partner in the West Asian region, following Saudi Arabia, and the second-largest export destination after Turkiye. In the first 11 months of 2024, bilateral trade amounted to RM39.53 billion, an 8.6% year-on-year increase, highlighting the UAE’s strategic importance as an economic partner for Malaysia.
The UAE is also a significant investor in Malaysia among GCC countries. By September 2024, 35 manufacturing projects valued at RM1.51 billion were implemented by UAE investors, creating 2,187 job opportunities and contributing to the growth of Malaysia’s manufacturing sector, as noted by MITI.