IN a significant move to bolster economic collaboration, the United Arab Emirates (UAE) and Kenya have finalised a Comprehensive Economic Partnership Agreement (CEPA), as confirmed by UAE Minister of Foreign Trade Thani Al Zeyoudi on Friday. This agreement signifies a pivotal step in fostering stronger ties between the two nations, with a focus on enhancing trade relations and promoting economic diversification.
‘Today’s agreement marks a historic milestone in the relationship between the UAE and Kenya, paving the way for deeper cooperation and mutual prosperity,’ stated Minister Al Zeyoudi.
Kenya, recognised as East Africa’s largest economy, emerged as one of the initial African countries engaged in bilateral trade discussions with the UAE in 2022. This initiative was part of the UAE’s strategic endeavour to broaden its economic horizons beyond its oil-dependent economy.
Highlighting the burgeoning economic ties, Minister Al Zeyoudi disclosed that non-oil trade between the UAE and Kenya surged to $3.1bn in 2023, reflecting a notable increase of 26.4 percent from the previous year. ‘This substantial growth underscores the immense potential of our partnership and sets the stage for further collaboration,’ he added.
Emphasising the significance of the CEPA, Minister Al Zeyoudi articulated plans for expanding collaboration across various sectors ranging from food production and mining to technology and logistics. ‘With this agreement, we aim to unlock new opportunities for trade and investment, driving sustainable growth for both our economies,’ he remarked.
The UAE’s state news agency, WAM, cited Kenya’s trade minister, Rebecca Miano, expressing optimism about the agreement’s implications. Miano affirmed that the CEPA would facilitate Kenyan exports’ access to key markets in Asia and the Middle East, while also stimulating investment inflows that promise to bolster national capabilities.
‘The CEPA with the UAE opens doors for Kenyan businesses to tap into lucrative markets and forge strategic partnerships, driving innovation and economic development,’ remarked Minister Miano.
The agreement between the UAE and Kenya is emblematic of the UAE’s broader strategy to deepen economic engagement globally. In recent years, the UAE has concluded several CEPA’s, forging alliances with erstwhile adversaries such as Israel and Turkey, as well as prominent Asian nations like India and Indonesia. Notably, the UAE inked its inaugural CEPA with African nations in 2023, signing deals with Mauritius and the Republic of Congo-Brazzaville, indicating a concerted effort to foster economic cooperation across continents.
With the CEPA between the UAE and Kenya now in place, both nations are poised to leverage this partnership for mutual benefit, promoting trade, investment, and economic development across diverse sectors.