In a significant stride towards bolstering economic ties, the UAE and Cambodia have ushered in a new era of collaboration with the ratificat...
In a significant stride towards bolstering economic ties, the UAE and Cambodia have ushered in a new era of collaboration with the ratification of their Comprehensive Economic Agreement. This landmark accord, now in full effect, heralds a myriad of opportunities for trade expansion, strategic investments, and economic diversification.
The UAE-Cambodia Comprehensive Economic Agreement, marking its fifth CEPA to date, is poised to reshape the economic landscape of both nations. By slashing tariffs on over 92% of product lines, it dismantles trade barriers and opens up avenues for service exports.
Forecasts indicate that this pact could potentially double the non-oil trade value between the UAE and Cambodia, soaring to an impressive $1 billion by the year 2030. Already, non-oil trade between the two nations surged by 33% in 2022, hitting $407 million, showcasing the burgeoning economic synergy.
Cambodia, a burgeoning economic powerhouse in Southeast Asia, anticipates a surge in exports ranging from grains to apparel. Meanwhile, the UAE eyes new export vistas in machinery, oils, and automotive sectors, bolstering bilateral trade relations.
With priority sectors like logistics, infrastructure, and renewable energy in focus, the pact aims to galvanize investment flows between the UAE and Cambodia. Bilateral FDI stands at a robust $3.8 million, poised for further growth and diversification.
Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, underscores the agreement's pivotal role in fortifying bilateral relations and fostering future-facing partnerships. His Cambodian counterpart, Cham Nimul, echoes this sentiment, emphasizing the transformative potential of the CEPA.
Notably, the agreement aligns with Cambodia's Pentagonal Strategy Phase I, underscoring its commitment to economic diversification and competition enhancement. This synergy between the UAE and Cambodia serves as a blueprint for regional integration and sustainable growth.
As the UAE continues to forge robust trading relationships across the globe, the implementation of CEPA with Cambodia stands as a testament to its commitment to fostering economic prosperity. With a shared vision for inclusive growth and resilience, both nations are poised to chart a course towards a prosperous future.
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