UAE strengthens economic and trade cooperation with Malaysia
- 28 Sep 2023
Dr Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, held talks with Zafrul Aziz, Minister of Investment, Trade and Industry for Malaysia, in Abu Dhabi in order to pursue deeper trade and investment ties. The meeting was part of a visit to the UAE by a delegation of Malaysia’s leading trade officials.
During the discussions, Al Zeyoudi commended the strong relations between the two countries and reaffirmed the UAE’s commitment to enhance trade cooperation and develop opportunities for the business communities of both sides. The two sides also reviewed the progress of the negotiations towards a UAE-Malaysia Comprehensive Economic Partnership Agreement, which was launched during a visit to Kuala Lumpur by His Highness Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, in May 2023.
This is the second meeting between the two trade ministers since CEPA negotiations began, the first of which took place in Jakarta at the ASEAN Business & Investment Summit earlier this month, which is a reflection of the deepening relationship between the UAE and Malaysia and the wider ASEAN bloc.
Dr Thani said: “Malaysia is a valued partner for the UAE in an increasingly important region, one which shares our vision of leveraging global trade to accelerate growth and diversify the economy. The meeting with the Malaysian delegation provided an important opportunity to explore the sectors with maximum potential for our respective private sectors, and to build consensus on issues impacting global trade ahead of MC13 in Abu Dhabi in February next year. Malaysia’s support for open, rules-based trade, transparent dispute resolution mechanisms and a greater voice for the developing world in trade policy will help deliver a conference of lasting impact.”
Tengku Zafrul Aziz, in turn, said:” We are keen to bolster our ties with the UAE, a nation that continues to gain importance as a strategic trading partner for Malaysia. Situated at the crossroads between East and West, the UAE offers immense opportunities for our exporters and their efforts to expand into global markets. Valuing UAE’s commitment in ensuring sustainability, Malaysia hopes to be the strategic partner for the UAE in this area and we look forward to working together in ensuring this relationship will deliver long-term and mutually beneficial rewards.” Both ministers welcomed the most recent growth in non-oil bilateral trade, which more than $2.226 Billion during the first half of 2023. Today, the UAE is Malaysia’s second largest trading partner in the Middle East, accounting for 32 per cent of its total trade with Arab countries, while Malaysia ranks eighth Non Arab Asia Country for UAE exports and 19th in re-exports. The two sides also expressed their intention to increase investments to build on the $370 million in combined FDI.
The Federal Competitiveness and Statistics Centre (FCSC) revealed in May this yaer that non-oil foreign trade between the UAE and Malaysia over a span of 10 years amounted to Dhs160.2 billion, according to data from
Imports accounted for 76 per cent of the total trade between the two countries, reaching Dhs121.6 billion. On the other hand, exports constituted 16.5 percent, valued at Dhs26.5 billion, while re-exports made up 7.5 per cent, amounting to Dhs12 billion.
The FCSC’s trade report on non-oil foreign trade between the UAE and Malaysia from 2013 to 2022 highlighted a six percent growth, with trade reaching AED 16.98 billion by the end of 2022 compared to Dhs16.06 billion in 2021. This indicates a growth rate of 32 percent compared to Dhs12.91 billion in 2020.
Among the past ten years, 2013 recorded the highest non-oil trade value, reaching Dhs21.08 billion.
Furthermore, the data revealed that the category of jewelry and precious metals ranked as the top imported goods from Malaysia in 2022, with a value of Dhs2.35 billion. In contrast, gold in raw or semi-finished forms ranked first among the top five goods exported from the UAE to Malaysia in 2022, valued at Dhs1.6 billion.
Separately in May 2023, Suhail Bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure, and Nik Nazmi Bin Nik Ahmad, Minister of Natural Resources, Environment and Climate Change of Malaysia, discussed ways of strengthening their cooperation in areas of energy, most notably clean energy, as well as boosting the bilateral ties between the UAE and Malaysia.
They also explored ways of attracting varied energy sector investments to their countries.
Al Mazrouei and Ahmad met on the sidelines of the official visit of His Highness Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to Malaysia.
During the meeting, they talked about ways of collaborating on investment and development in the energy sector, how to enhance the sustainable development capacities of the two countries and the UAE’s upcoming hosting of COP28 in November 2023.
They also agreed to improve their cooperation by sharing skills and knowledge and hosting more joint meetings among high-level officials in the energy and climate sectors.
