UAE trade pacts with Malaysia, Australia come into effect

UAE-Malaysia trade pact takes effect: Malaysia and the UAE’s trade and economic partnership agreement between the UAE and Malaysia has come into force, state news agency Wam reports. Signed earlier this year, the pact aims to more than double bilateral trade to USD 13.5 bn by 2032 through cutting tariffs, streamlining customs, and expanding private sector cooperation. This is Malaysia’s first trade agreement with a Gulf state.

Sectors on target: The agreement extends beyond goods to cover services, investment, and the Islamic economy, with provisions supporting joint growth in healthcare, AI, renewable energy, logistics, and sustainable development.

REMEMBER- The two sides concluded negotiations in late 2024 and have since also inked MoUs on maritime and food security — including plans to develop a multipurpose terminal at Malaysia’s Bagan Datuk Port to serve as a food export hub to China, ASEAN, and the GCC.

The UAE’s trade pact with Australia has likewise taken effect, aiming to raise annual trade from 2024’s USD 4.2 bn to more than USD 10 bn by 2032, Wam reports. Signed in November 2024, the agreement is Australia’s first with a MENA country, and it reduces tariffs, eases market access, and targets investment in renewable energy, food security, infrastructure, and technology.

REMEMBER- The UAE’s Cepa program underpins its goal of pushing foreign trade to USD 1 tn by 2031. Non-oil foreign trade jumped 24% y-o-y to nearly AED 1.7 tn in 1H 2025, with trade contributing 15.6% of non-oil GDP in 1Q 2025. The sector is now on track to hit AED 4 tn by 2027 — four years ahead of the original 2031 target.