The UAE and South Korea have agreed to start discussions on expanding bilateral cooperation in areas from climate change mitigation to advanced technology in order to unlock new investment and trade opportunities.
The countries have discussed the prospect of pursuing a Comprehensive Economic Partnership Agreement (CEPA). The negotiations on CEPA are expected to start within two months and to be finalized by the end of 2022.
The decision came during a meeting between Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and a high-level Korean delegation, headed by Mr. Yeo Han-Koo, S. Korea’s Minister for Trade.
The move is part of the UAE’s drive to seek economic agreements with eight countries, as the global economy recovers from the effects of the COVID-19 pandemic. The UAE has already started negotiations on two such deals, following the launch of talks with India and Indonesia last month.
Dr. Thani bin Ahamed Al-Zeyoudi UAE Minister of State Foreign Trade
“We are working around the clock to consolidate the UAE’s position as a global trade and logistics hub that connects the world to the broader region and beyond. S. Korea and the UAE are natural trade and investment partners with shared goals to deliver sustainable economic growth. Today’s intention to launch CEPA is a step forward in our vision for a mutually beneficial partnership that creates new jobs and investment opportunities. It reinforces our position as a gateway for goods and services that can flow through Africa, Asia and Europe under an economic blueprint for the next 50 years.”
“Last year, the UAE was S.Korea’s largest trading partner in the Middle East,” Mr. Yeo Han-Koo said. Once finalized, the UAE and S. Korea’s agreement will open up each other’s markets for goods and services, modernize the rules of trade and ultimately strengthen the economic competitiveness of our two countries.
Further, the strategic partnership will continue to expand in the areas of energy and nuclear power. The CEPA negotiation will cover a variety of issues, including market access to goods and services, as well as eCommerce and achieving carbon neutrality.
The UAE is Korea’s largest trading partner in the Arab world, with bilateral trade exchange valued at $9.4 billion in 2020. Non-oil trade in the first six months of 2021 has grown to $2.1 billion.
In recent years, investment from Korea has focused on strategically important national industries, such as renewable and nuclear energy, hydrocarbons, healthcare and logistics.
