UAE-Malaysia Comprehensive Economic Partnership Agreement
Overview
UAE-Malaysia Comprehensive Economic Partnership Agreement
The UAE-Malaysia Comprehensive Economic Partnership Agreement (CEPA) was signed 14th January 2025 and came into force on 1st October 2025.
The CEPA builds on the close economic relationship between the UAE and Malaysia and aims to deepen cooperation in key sectors, reinforce supply chains, unlock investment potential, and open new doors for the two countries’ private sectors to thrive together.
The CEPA has significant strategic value to both nations as it provides an entry point into broader economic blocs. The CEPA is projected to solidify the UAE as a strategic hub for Malaysian exports to the Middle East, North Africa, and beyond, while opening the Southeast Asian markets to UAE traders, entrepreneurs, and investors.
Timeline
Caption
UAE-Malaysia CEPA was signed in Abu Dhabi on 14 January 2025 by His Excellency Dr. Thani bin Ahmed Al Zeyoudi, UAE’s Minister of Foreign Trade, and His Excellency Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry.
The ceremony was presided over by His Highness Sheikh Mohamed bin Zayed Al Nahyan, the President of the UAE, and His Excellency Anwar Ibrahim, Prime Minister of Malaysia.
CEPA Coverage
The UAE–Malaysia CEPA has 19 chapters and their annexes. The CEPA provides market access for goods; provides for the elimination or reduction of tariffs on almost all goods; contains commitments addressing non-tariff barriers, liberalizes trade in services, opens new pathways for investment, enhances collaboration between the Partners, and more.
Summary of the CEPA Content
Trade in Goods
The UAE–Malaysia CEPA provides for the immediate elimination of tariffs on almost all qualifying goods made in Malaysia or in the UAE, including those from free zones. Some products are subject to gradual tariff dismantlement with quotas over a 7-year period for Malaysia and a 5-year period for the UAE. As well as exclusions of sensitive and prohibited goods.
For detailed information on preferential tariff rates, please review the CEPA Market Access Dashboard below.
For goods to qualify for preferential tariff treatment, they must meet the Rules of Origin requirements that are flexible and seek to enhance two-way trade between the two Partners. CEPA supports the flow of goods in a simple, less costly, and timely manner through trade facilitation and customs cooperation arrangements.
The CEPA puts in place rules to ensure that product health and safety requirements are in line with international standards and do not become a barrier to trade.
CEPA reinforces the principle of fair trade by allowing for temporary relief against unfair trade or unforeseen surges in imports in accordance with the WTO agreements covering safeguards, subsidies, countervailing duties, and anti-dumping measures, as well as allowing for bilateral safeguard measures.
Trade in Services
Sets clear and transparent rules to facilitate the cross-border supply of services and ensure that service providers enjoy favorable treatment across a variety of service sectors and subsectors, including professional services, financial services, logistics, travel and tourism, and transport services.
For detailed information, please refer to the Trade in Services chapter, and its annexes on Schedules of Specific Commitments which include the services sectors and sub-sectors by clicking the link below.
Digital Trade
CEPA brings greater coherence to a continuously evolving digital trading landscape integral to today’s global economy by establishing common disciplines that enhance confidence and ensure that digital trade flows benefit both businesses and consumers.
Investment Facilitation
CEPA reaffirms each Partner’s commitment to the protection of investment under the 1991 Bilateral Investment Agreement and establishes a Technical Council to promote and enhance investment flows, identify opportunities for expanding investment, overcome investment impediments, and engage with the business community.
Government Procurement
CEPA establishes contact points and creates a mechanism to enhance transparency and to allow the two trading Partners to cooperate on government procurement matters.
Intellectual Property Rights
CEPA complements existing international principles and standards for the treatment, protection, and enforcement of Intellectual Property Rights (IPRs) in a manner that is conducive to invention, innovation, and creativity.
Small and Medium-Sized Enterprises (SMEs)
CEPA recognizes the specific needs of SMEs and seeks to make it easier for SMEs and entrepreneurs to grow their businesses and attract investment by providing information and putting in place joint platforms to assist SMEs in developing linkages and building capacities.
Economic Cooperation
CEPA promotes cooperation and collaboration among the Partners to support stronger economic ties and ensure that businesses can fully benefit from the opportunities made possible by the Agreement. Areas of cooperation include manufacturing industries; agriculture, forestry and fisheries; tourism; energy; global value chains; trade and investment promotion; intellectual property; information and communication technology; capacity building and technical assistance; competition; as well as SMEs. Moreover, the Partners may agree on other new areas of cooperation that are in their mutual interests and contribute to achieving the objectives of CEPA.
Islamic Economy
CEPA contains comments to encourage greater cooperation among the Partners to promote and facilitate the development of the Islamic Economy in areas such as Halal products, financial services, and tourism.
Disputes Settlement
The CEPA’s state-to-state trade dispute settlement mechanism underscores the Partners’ commitment to resolving trade disputes in a timely manner that preserves the levels of trade liberalization and benefits the economy.
Agreement Administration
CEPA establishes an administrative and communication structure that is mainly comprised of specialised committees and subcommittees that manage and oversee the implementation of the different aspects of the CEPA.
The UAE-Malaysia CEPA includes 19 chapters
The UAE-Malaysia CEPA Handbook
To be shared soon
The UAE-Malaysia CEPA Market Access Dashboard
UAE exporters can now benefit from greater market access through preferential tariff rates. Some products will be subject to zero tariffs from day one - others will see them reduced over time. To determine the tariff classification (your HS code for your product), review the dashboard and find the tariff line description that best represents your product. From there you can view the preferential tariff rate for your product and estimate the charges.