In a "landmark" accord, the UAE and Kenya have wrapped up discussions for a comprehensive economic partnership agreement (CEPA), opening up new markets for expansion into everything from technology to food.
The Minister of State for Foreign Trade, Dr. Thani Al Zeyoudi, stated in a post on X on Friday that the two trading partners would look to capitalize on potential in industries like food production, mining, technology and logistics.
"Offering new avenues for growth on both sides, it is a landmark deal with one of the continent's most dynamic economies," he declared.
"Kenya is already a significant partner and an entry point into a high-growth region."
According to Dr. Al Zeyoudi, non-oil trade between the UAE and Kenya increased by 26.4% annually to $3.1 billion in twenty-three.
This most recent agreement marks the UAE's third CEPA with an African nation. It finalised the parameters of an agreement with the Republic of Congo and Mauritius in December.
With India, Israel, Indonesia, Turkey, Georgia, Cambodia, Colombia, South Korea, and Costa Rica, the UAE has already completed Cepas.
The UAE's economic diversification helped its non-oil foreign trade reach a record Dh3.5 trillion ($953 billion) in twenty-three.
The agreement was reached a few days before the United Arab Emirates (UAE) hosted the 13th Ministerial Conference of the World Trade Organization, which is tasked with mediating important trade agreements on Monday.
Real gross domestic product growth in Kenya has increased from 4.8% in 2022 to an expected 5% in 2023. The growth rate of the African economy is anticipated to range from 4.5% to 5.2% in 2024.
Investment flows in high-potential sectors such logistics, healthcare, travel, tourism, infrastructure, and information communications technology will accelerate as a result of the UAE-Kenya Cepa.
According to the UAE's Ministry of Foreign Trade, it will support the growth of small and medium-sized businesses.
According to the Ministry of Foreign Trade, Kenya's agriculture industry, which makes up over 25% of the country's GDP, and services sector, which together account for 53.6% of Kenya's GDP, offer "vast potential" for UAE companies looking to enter the African market.
According to the statement, the agreement opens up "a new chapter of trade relations" between the two nations and will protect crucial East and West supply lines, encourage investment in high-priority areas and expand market access for Kenyan and Emirati companies.
In addition to increasing trade and investment, Dr. Al Zeyoudi stated that the UAE-Kenya CEPA will promote innovation and long-term growth in important industries including tourism, technology, and agriculture.
Kenya has identified trade as a "key lever" for its economic transformation and progress, according to Rebecca Miano, Cabinet Secretary for Investments, Trade and Industry.
She stated, "We are on a national development path that seeks to expand the opportunities for its export, improve the quality and global competitiveness of that output and increase industrial output."
"Our exports will be able to reach significant markets in Asia and the Middle East thanks to the comprehensive economic partnership agreement with the [UAE], which will also play a key role in stimulating investment inflows that will further develop our national capabilities."