The deal aims to double non-oil intra-oil trade from $407 million in 2022 to $1 billion within 5 years, according to the Emirates News Agency on Thursday.
The agreement also aims to advance trade and investment relations between the UAE and the Kingdom of Cambodia to a new level of partnership and joint economic growth.
The Comprehensive Economic Partnership Agreements are considered a key pillar of the UAE’s economic growth plans which aim to diversify its economy into various fields other than oil.
UAE Foreign Trade Minister Thani Al-Zeyoudi wrote on Twitter that the partnership with Cambodia is helping to “create a corridor of trade opportunities between the Gulf and Southeast Asian regions in reducing or eliminating tariffs, removing barriers to trade flows and creating new avenues for strategic investment, to strengthen the country’s position as a “global” trading hub.
Al-Zeyoudi said non-oil trade between the UAE and Cambodia grew 33% to $407 million in 2022, and he looked forward to working with Cambodia’s trade minister to “boost trade flows to reach $1 billion per year within five years”.
The UAE Ministry of Economy said the deal will increase Cambodia’s exports of grain, fruit, meat, clothing, leather products and other items, as well as exports of machinery, of oils and lubricants from the United Arab Emirates.
The UAE is one of Cambodia’s most important trading partners in the Arab world, with a 70% share of its trade with the region, according to non-oil foreign trade data for 2022.
According to the agreement, the two countries will also explore investment opportunities in logistics, infrastructure, travel and renewable energy.
Emirates news agency reported that total Emirati investments in Cambodia amounted to around $3 million, while the value of Cambodian investments in the country amounted to around $1 million.
The UAE signed partnership agreements with India, Indonesia, Israel and Turkey before Cambodia. It is preparing to conclude more than a dozen other agreements, as part of its plan to double its foreign trade and the size of the national economy by 2030.
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