Summary:
- The UAE and Mauritius signed their first CEPA with an African nation.
- The agreement aims to raise bilateral non-oil trade to over $500 million in five years.
- Mauritius will benefit from deeper trade integration with the UAE.
On Monday, the UAE and Mauritius signed a comprehensive economic partnership agreement, aiming to enhance both economies by removing tariffs and expanding market access.
Finalized in December, this agreement is the UAE’s first Comprehensive Economic Partnership Agreement (CEPA) with an African nation. Under the deal, Mauritius will eliminate 99% of tariffs on UAE imports, while the UAE will remove 97% of its fees.
The pact is projected to increase the UAE’s GDP by 0.96% and add over 1% to Mauritius’ economy by 2030. Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, stated that the agreement embodies the commitment to strengthen bilateral relations, foster economic growth, and create new opportunities for both nations.
Trade and investment between the two countries are on the rise, with non-oil trade surging 82.5% year-on-year to $76 million from January to April, according to official data.
In 2023, bilateral trade between the UAE and Mauritius reached $170.4 million, marking a 14.5% increase from 2022.
Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, stated, “By eliminating or reducing tariffs, removing trade barriers, and enhancing market access, we aim to push our bilateral non-oil trade beyond $500 million within five years.”
The UAE is currently Mauritius’ eighth-largest investor, with $13.2 billion invested in sectors such as tourism, real estate, renewable energy, and technology.
The CEPA is expected to further “deepen trade and investment ties, accelerate growth in key industries, create jobs, strengthen supply chains, and streamline market access for businesses in both countries,” according to the statement.
Mauritian Prime Minister Pravind Kumar Jugnauth emphasized, “This agreement is not just about removing trade barriers; it’s about fostering a deeper partnership that will benefit our economies and people, as well as the Gulf region and Africa.”
The UAE is focused on expanding trade to reach its goal of Dh4 trillion ($1.1 trillion) in non-oil foreign trade and increasing exports to Dh800 billion by 2031. Last year, non-oil trade reached a record $701 billion, a 12.6% increase.
The UAE plans to sign 26 CEPA agreements, having already secured deals with India, Turkey, Israel, Indonesia, Cambodia, and Georgia, with ongoing negotiations with Serbia, Vietnam, the Philippines, New Zealand, and Ecuador.
CEPA agreements are projected to contribute about 2.6% to the UAE’s economy by 2030, Dr. Al Thani noted previously.
The agreement with Mauritius is anticipated to boost energy and infrastructure investments, according to Suhail Al Mazrouei, Minister of Energy and Infrastructure.
“The deal will advance both countries’ energy sectors, particularly as Mauritius aims to increase the share of renewable energy to 60% of its electricity mix by 2030, focusing on solar, wind, biomass, hydro, and waste-to-energy sources,” he said.
Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, noted that the deal will create new opportunities for the UAE’s private sector. He highlighted Mauritius’ promising economy, which grew 8.5% in GDP in 2022, its fastest rate in 35 years, and its vibrant industrial sector, including textiles and light engineering.
“The collaboration potential is substantial, offering opportunities for supplying Mauritius with necessary materials and resources, as well as contributing to the development of their industrial base,” Dr. Al Jaber added.
Abdulla bin Touq, Minister of Economy, emphasized that Mauritius serves as a key gateway into Africa and that deeper economic integration will benefit both nations. “Our CEPA will improve the flow of goods and services between the Gulf and Africa, open new markets for exporters, and drive investment in sectors like logistics, manufacturing, tourism, and financial services,” he said. “We are eager to fully realize the benefits of this agreement in the near future.”
Source:
The National
