The United Arab Emirates and South Korea have officially activated their Comprehensive Economic Partnership Agreement (CEPA), ushering in a new chapter of economic collaboration aimed at boosting trade, investment, and cross-border business opportunities. The agreement is expected to significantly enhance bilateral relations by improving market access and encouraging private sector participation across key industries such as advanced technology, manufacturing, logistics, and renewable energy.
At the core of the CEPA is a substantial reduction in trade barriers. Tariffs will be reduced or eliminated on more than 90 percent of traded goods and services, enabling businesses from both nations to operate more competitively and efficiently in each other’s markets. In addition to tariff cuts, the agreement focuses on addressing non-tariff barriers, streamlining regulations, and establishing a structured framework to support long-term economic cooperation.
This milestone is particularly significant as it represents South Korea’s first trade agreement with a country in the Gulf Cooperation Council (GCC) and the broader Middle East and North Africa region, highlighting the growing importance of UAE as a strategic trade partner.
Trade between the two nations has already demonstrated steady growth. Non-oil bilateral trade reached approximately $6.9 billion in 2025, with both countries maintaining nearly $10 billion in mutual investments. Officials anticipate that the CEPA will accelerate this growth trajectory by opening new trade channels and strengthening supply chains.
Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, described the agreement as a pivotal step in expanding economic engagement with Asia. He noted that the CEPA would not only increase trade flows but also create new opportunities for exporters while reinforcing collaboration in priority sectors.
The agreement aligns with the UAE’s broader strategy of establishing global trade partnerships. With more than 30 similar agreements concluded to date, the country continues to position itself as a global trade hub while promoting economic diversification and attracting foreign investment.
Looking ahead, the UAE-South Korea CEPA is expected to deliver long-term benefits for businesses operating in both markets, fostering innovation, improving competitiveness, and supporting sustainable economic growth.
