UAE and South Korea Implement Trade Agreement to Enhance Economic Ties

Apr 30, 2026

78 min

Apr 30, 2026 14:30

UAE, South Korea activate trade deal to boost investment and exports

## New Trade Agreement

The United Arab Emirates (UAE) and South Korea have officially activated their Comprehensive Economic Partnership Agreement (CEPA), marking a significant step in strengthening trade and investment relations. This agreement is designed to enhance economic collaboration, expand market access, and support key industries such as technology, manufacturing, and logistics.

## Tariff Reductions and Market Access

Under the CEPA, tariffs on 91.2% of traded goods and services will be reduced or eliminated, facilitating easier market access for businesses in both countries. The agreement also aims to remove non-tariff barriers and improve regulatory alignment, particularly in sectors like renewable energy, healthcare, and advanced technology.

## Economic Impact

In 2025, non-oil trade between the UAE and South Korea reached $6.9 billion. With the CEPA now in effect, officials anticipate accelerated growth in bilateral trade volumes. The UAE, already South Korea's largest trading partner in the Gulf Cooperation Council, holds approximately $10 billion in mutual investments with South Korea.

## Strategic Importance

Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, emphasized the importance of this agreement in expanding economic ties with Asia. He highlighted that the CEPA will support increased trade flows, create new market opportunities, and strengthen investment and cooperation in priority sectors.

## Part of a Broader Strategy

The UAE-South Korea CEPA is part of a broader strategy by the UAE to expand global trade partnerships, with 36 agreements finalized so far. This growing network of CEPAs aims to boost economic diversification, attract foreign investment, and enhance the role of the private sector in driving growth.

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