The UAE launched regional economic deals while building its Asia network. Vietnam signed its second Comprehensive Economic Partnership Agreement in Asia with the United Arab Emirates. The UAE acts as a strategic connection between both GCC countries and the nations of ASEAN. The Emirates partners with countries to make Dubai a better global trading location and lower its dependence on oil.
Has the UAE Found the Key to Unlocking Asian Economic Integration?
The UAE has followed a planned approach to trade development across Southeast Asia by launching its CEPA program, starting with an agreement in 2020 for Indonesia. Following this major agreement, Emirates secured $10 billion of investments, mainly in logistics and energy, which set up what would happen next. After negotiating the Cambodia agreement this year, the UAE signed its latest CEPA with Vietnam. Singapore’s position as a core member connects to the UAE through the $24.1 billion merchandise trade relationship of 2024, along with its 600 companies that operate across UAE industries such as fintech, healthcare, and education.
Malaysia builds upon the economic connection with its CEPA that seeks to develop specific sectors including data centers, artificial intelligence, logistics, ports, food safety, and pharmaceutical industries.
How Are These Trade Deals Bypassing Traditional Economic Powers?
Under this agreement, the UAE and Vietnam plan to turn their current trade value of $6 billion into an advanced business link that will let Vietnamese goods, such as farm products, seafood, textiles, and electronics, access Gulf markets at diminished tariff rates. As Vietnam aims to sell more agricultural goods to the UAE, the trade outlook becomes brighter since the 5-15% tariff barriers are now lowering.
These trade partnerships now create a new way for Asian nations to work directly together in building an economic system. Small and medium-sized countries like the UAE, Vietnam, and Indonesia team up through mutual terms that lower their heavy reliance on powerful nations and promote economic balance throughout different regions.
Will the ASEAN-GCC Link Choose to Lead the World’s Economy?
The UAE drops its nation-specific deals and creates many new partnerships across Asian countries in this region. DP World opens its major Dubai facilities in Singapore as its growth foundation and Space42 joins Masdar to build facilities for renewable energy and technology development.
ASEAN and UAE work to spread their economic activities outside of Western countries to lower their dependency on import and export markets there. The United Arab Emirates cooperates with Vietnam, Indonesia, Singapore, India, etc. to design business strategies that establish a fresh way for Gulf Cooperation Council nations and ASEAN nations to work together.
