Home World UAE and Kenya Finalize Comprehensive Economic Partnership Agreement Covering Various Sectors from Food to Technology

UAE and Kenya Finalize Comprehensive Economic Partnership Agreement Covering Various Sectors from Food to Technology

Dr. Thani Al Zeyoudi highlights Kenya as one of Africa's most vibrant economies, presenting fresh avenues for growth for both parties involved.

by Soofiya

In the ever-evolving landscape of international trade, the recent agreement between the United Arab Emirates (UAE) and Kenya marks a significant milestone. The Comprehensive Economic Partnership Agreement (CEPA) finalized between the two nations encompasses a broad spectrum of sectors, ranging from food to technology. This pact not only strengthens bilateral economic ties but also opens doors for mutually beneficial opportunities in diverse industries.

The UAE and Kenya, both strategically positioned hubs in their respective regions, recognize the importance of fostering deeper economic cooperation. By formalizing the terms of CEPA, they aim to leverage each other’s strengths and resources for sustainable growth and development.

One of the key sectors covered by the agreement is food trade. Kenya boasts a rich agricultural landscape, producing a variety of fruits, vegetables, and other agricultural products. Through CEPA, the UAE can tap into Kenya’s agricultural abundance to meet its growing demand for fresh produce. This collaboration not only facilitates smoother trade but also promotes food security and strengthens agricultural ties between the two nations.

Moreover, the CEPA extends beyond traditional sectors to encompass cutting-edge technologies. The UAE, known for its innovation-driven economy, offers expertise in sectors such as information technology, renewable energy, and telecommunications. By engaging in technology transfer and collaboration initiatives, Kenya can accelerate its technological advancements, bolstering its competitiveness on the global stage.

The agreement also paves the way for enhanced investment opportunities. With favorable terms outlined in CEPA, businesses from both countries can explore new avenues for investment and market expansion. This influx of investments stimulates economic growth, creates job opportunities, and fosters innovation ecosystems in both nations.

Furthermore, CEPA sets the framework for regulatory cooperation and capacity building initiatives. By aligning standards and regulations, trade barriers are minimized, facilitating smoother trade flows and ensuring consumer protection. Capacity building programs enhance the skill sets of entrepreneurs and professionals, empowering them to thrive in an increasingly interconnected global economy.

The UAE and Kenya’s commitment to CEPA reflects their shared vision of forging stronger economic partnerships for mutual prosperity. As they embark on this journey of collaboration, both nations stand to reap the rewards of increased trade, investment, and innovation.

The UAE and Kenya have finalized negotiations for a Comprehensive Economic Partnership Agreement (CEPA), marking a significant milestone that will facilitate access to the rapidly growing African continent and expansion across various sectors from food to technology.

Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, described the agreement as a “landmark deal” that opens up new avenues for growth for both nations. Highlighting Kenya’s status as one of the continent’s most dynamic economies, Dr. Al Zeyoudi emphasized the potential for mutual benefits and increased collaboration.

Trade between the UAE and Kenya has been on an upward trajectory, with non-oil trade reaching $3.1 billion in 2023, representing a 26.4% year-on-year increase. This latest CEPA adds to the UAE’s growing portfolio of agreements with African countries, following similar deals with Mauritius and the Republic of Congo.

The UAE’s proactive approach to economic diversification and its pursuit of CEPA agreements have contributed to robust foreign trade, reaching a record Dh3.5 trillion ($953 billion) in 2023. These agreements position the UAE as a key player in global trade dynamics.

The CEPA with Kenya comes ahead of the World Trade Organization’s 13th Ministerial Conference, underscoring the UAE’s commitment to fostering international trade partnerships and agreements.

Kenya’s economy, with a real GDP growth rate of 5% in 2023, offers promising investment opportunities in sectors such as logistics, healthcare, tourism, and information communications technology (ICT). The CEPA aims to facilitate investment flows and promote growth in these high-potential areas, benefiting small and medium enterprises (SMEs) and stimulating innovation.

The removal of visa requirements for visitors to Kenya enhances tourism prospects, while the services and agriculture sectors present significant opportunities for UAE businesses looking to expand into Africa.

The agreement signals a new era of trade relations between the UAE and Kenya, strengthening supply chains and providing market access for businesses in both countries. Dr. Al Zeyoudi expressed optimism about the agreement’s potential to drive innovation and sustainable growth, particularly in agriculture, technology, and tourism.

Rebecca Miano, Kenya’s Cabinet Secretary for Investments, Trade, and Industry, emphasized the importance of trade in Kenya’s economic development strategy. She highlighted the CEPA’s role in enhancing export opportunities and attracting investment to support industrial growth and global competitiveness.

In conclusion, the UAE-Kenya CEPA represents a significant step forward in bilateral relations, fostering economic cooperation and opening doors to shared prosperity and development in both nations. The conclusion of CEPA between the UAE and Kenya signifies a significant step forward in their bilateral relations. By encompassing sectors ranging from food to technology, this agreement lays the foundation for deeper economic integration and cooperation. As the two nations work hand in hand to implement CEPA, they set a compelling example of how strategic partnerships can drive sustainable development and prosperity in the modern era of global trade.

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