United Arab Emirates Minister of State for Foreign Trade Thani Al Zeyoudi gestures during an interview with Reuters in Dubai, United Arab Emirates, June 30, 2022. REUTERS/Abdel Hadi Ramahi/File photo
The United Arab Emirates and South Korea have successfully concluded negotiations for a Comprehensive Economic Partnership Agreement (Cepa), a bilateral trade deal, announced both countries on Saturday.
The trade and investment relationship between the UAE and South Korea has been steadily progressing. In the first half of 2023, their bilateral non-oil trade reached $3 billion, matching the same period last year. This represents a 21% increase compared to 2021, according to a statement.
In Abu Dhabi, the Korea Electric Power Corporation and a consortium of Korean firms constructed all four units of the $20 billion nuclear Barakah Power Plant. It has been operating since April 2023, supporting the UAE’s domestic electricity needs.
In 2021, South Korea was among the first countries that initiated Cepa talks with the UAE.
However, three months later, the Asian state revived dormant Free Trade Agreement (FTA) negotiations with the Gulf Cooperation Council bloc, a six-member cooperation group that includes the UAE.
“We resumed talks with Korea earlier this year as we were both keen to conclude a deal and advance our respective economic agendas,” said Thani Al Zeyoudi, UAE Minister of Foreign Trade, in an interview with Reuters. Al Zeyoudi also stated that the GCC FTA talks are ongoing.
“As of 2022, there were about 178 South Korean companies doing business in the UAE. The Korea-UAE Cepa will enhance the stability of South Korean firms entering the UAE and support their activities in the Middle East and North Africa,” said South Korea’s trade ministry in a statement.
The UAE has already signed several Cepas, including agreements with countries such as Israel, Turkey, India, and Indonesia. These agreements are part of the UAE’s strategy to diversify its economy away from oil.
The UAE has made it clear that it doesn’t mix politics with trade when asked about the impact of the Israel-Gaza conflict on its trade deal with Israel.
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