In a move set to inject fresh momentum into their economic relationship, the United Arab Emirates (UAE) and Kenya have inked a landmark trade agreement, signaling a new era of collaboration and investment in key sectors.
The Comprehensive Economic Partnership Agreement (CEPA) is poised to unlock a wave of investment in logistics, healthcare, and travel and tourism between the two nations. According to a press release, the deal will bolster market access for businesses on both sides, paving the way for enhanced cooperation and growth.
One of the focal points of the agreement is the boost it will provide to infrastructure and ICT (information and communication technology) sectors, setting the stage for a substantial uptick in economic activity. Additionally, the CEPA will facilitate a platform for small and medium enterprises (SMEs) to expand and collaborate, fostering innovation and sustainable growth.
Kenya’s economy, which experienced a robust annual GDP growth of 5 percent in 2023, offers immense opportunities for UAE businesses. The services sector, constituting over half of Kenya’s economy, and the agriculture sector, contributing a quarter of national GDP, present lucrative prospects for investment and expansion.
Thani bin Ahmed Al-Zeyoudi, the UAE’s Minister of Foreign Trade, hailed the agreement as a “significant milestone” in the country’s trade agenda, emphasizing its role in strengthening economic ties with Africa. He expressed optimism about the agreement’s potential to spur trade, investment, and innovation in key sectors such as agriculture, technology, and tourism.
Rebecca Miano, Kenya’s Cabinet Secretary for Investments, Trade and Industry, underscored her government’s commitment to leveraging international commerce for economic growth and transformation. She highlighted the CEPA’s role in facilitating Kenya’s exports to vital markets in Asia and the Middle East, while also stimulating investment inflows to bolster national capabilities.
The UAE, known for its robust trade performance, recorded a non-oil trade in goods of $710 billion in 2023, marking a significant increase from previous years. The country has already concluded 10 CEPAs with various nations, showcasing its commitment to fostering trade and investment globally.
The UAE-Kenya CEPA is expected to bolster economic ties, drive investment, and create new opportunities for businesses and investors in both countries. With its potential to spur growth and innovation, the agreement is poised to deepen the relationship between the UAE and Kenya, establishing them as key partners in the region and beyond.
(Source: Arab News | The East African)
