UAE, South Korea activate trade deal to boost investment and exports

Dubai: The UAE and South Korea have brought their Comprehensive Economic Partnership Agreement (CEPA) into force, marking a new phase in trade and investment ties between the two economies.

The agreement is expected to deepen economic cooperation, expand market access and support private sector activity across key industries, including technology, manufacturing and logistics.

Under the CEPA, tariffs will be reduced or eliminated on 91.2% of traded goods and services, making it easier for businesses in both countries to access each other’s markets.

The deal also aims to remove non-tariff barriers, improve regulatory alignment and create a structured framework for investment and collaboration in sectors such as renewable energy, healthcare and advanced technology.

This is South Korea’s first trade agreement with a country in the Gulf Cooperation Council and the wider Middle East and North Africa region.

Non-oil trade between the UAE and South Korea reached $6.9 billion in 2025, and officials expect the agreement to accelerate growth in bilateral trade volumes.

The UAE is already South Korea’s largest trading partner in the GCC, with both countries holding around $10 billion in mutual investments.

Officials said the agreement will support exporters by opening new channels into Asian markets while strengthening supply chains.

Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, said the agreement represents a key step in expanding economic ties with Asia.

“The entry into force of the UAE-South Korea CEPA marks an important milestone in our trade and economic relations with Asia,” he said.

“The agreement will support increased trade flows, create new market opportunities for exporters and strengthen investment and cooperation across priority sectors, including advanced technology, manufacturing and logistics.”

He added that the deal would “enhance supply-chain resilience and reinforce the UAE’s position as a global trade hub.”

The UAE-South Korea CEPA is the latest in a series of trade agreements signed by the UAE, with 36 deals finalised so far as part of its broader strategy to expand global trade partnerships.

Officials said the growing network of CEPAs is designed to boost economic diversification, attract foreign investment and strengthen the role of the private sector in driving growth.

The agreement is expected to create long-term opportunities for companies operating in both markets, building on existing business ties and supporting future expansion.