UAE and Kenya Sign Comprehensive Economic Partnership Agreement to Boost Trade and Investment
Kenyan and AUE partners in the negotiations table Photo: @Firstpost
January 16, 2025 Hour: 1:04 pm
The United Arab Emirates (UAE) and Kenya have entered into a Comprehensive Economic Partnership Agreement (CEPA) aimed at enhancing trade and investment between the two nations.
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This agreement marks a significant milestone as it is the UAE’s first bilateral trade agreement with an African country, underscoring its commitment to diversifying its economy beyond oil dependency.
In the first three quarters of 2024, non-oil trade between the UAE and Kenya surged to $3.1 billion, reflecting an impressive 29.1% increase compared to the same period in 2023. This growth highlights the strengthening economic ties fostered by the CEPA.
Kenya, recognized as one of Africa’s most promising economies, achieved a real GDP growth rate of 5.6% in 2023, with forecasts suggesting an average growth rate of 5.2% from 2024 to 2026.
Key sectors such as services, which contribute 53.6% to Kenya’s GDP, and agriculture, accounting for approximately 25%, present substantial opportunities for UAE businesses looking to expand in the region.
The CEPA is set to enhance investment in high-potential areas including information and communications technology (ICT), banking, tourism, infrastructure, and renewable energy. This aligns with the UAE’s broader economic strategy to double its economy’s size to over $800 billion by the end of the decade, with foreign trade serving as a key pillar.
Additionally, the agreement aims to eliminate trade barriers across a wide range of goods and services, creating new opportunities for importers and exporters in both countries. Kenyan businesses are expected to leverage the UAE’s strategic geographic location and logistical advantages to broaden their market access.
This initiative is part of the UAE’s ongoing strategy to strengthen economic relations with African nations, following similar agreements with countries like Mauritius and the Republic of the Congo. The CEPA with Kenya is anticipated to further solidify the UAE’s role as a reliable partner and investor in Africa.
Autor: OSG
Fuente: EFE-Africanews
