The UAE and Kenya – one of the most dynamic economies of Africa – have concluded negotiations for a comprehensive economic partnership agreement (Cepa) in a remarkable deal expected to provide further access to the rapidly developing continent.
Dr Thani Al Zeyoudi, UAE’s Minister of State for Foreign Trade, took to X on Friday to highlight that the two countries will seek to tap into opportunities in sectors including food production, technology, logistics and mining, calling the agreement a “landmark” one.
In 2023, the UAE and Kenya’s non-oil trade increased 26.4% YOY to $3.1 billion. The Emirates’ non-oil foreign trade hit $953 billion last year, bolstered by the country’s economic diversification plans as it signs a series of Cepas with major economies across the globe.
UAE’s Cepa programme proving immensely successful
The latest pact is the UAE’s third Cepa with an African country. In December, it concluded the terms of a deal with Mauritius and the Republic of Congo. It has already concluded Cepas with India, Israel, Georgia, Cambodia, Turkey, Colombia, Costa Rica and South Korea.
“Kenya is already a major partner,” said Al Zeyoudi. The country’s real GDP increased to an estimated 5% last year, from 4.8% in 2022. Meanwhile, the developing African economy is projected to achieve growth of between 4.5% and 5.2% in the current year.
The UAE-Kenya comprehensive economic partnership agreement is expected to hasten investment flows in high potential areas like healthcare, travel and information communications technology. It can also help small and medium enterprises expand.
Kenya drops visa requirements for all travellers globally
The landmark agreement will not only boost trade and investment figures, but also facilitate innovation and sustainable growth in several significant sectors such as agriculture, technology and tourism, according to the Emirati minister.
In terms of tourism, Kenya has dropped visa requirements for all travellers from across the globe. The destination is immensely popular among tourists. The government has developed a digital platform to ensure all travellers receive a travel authorisation in advance.
Furthermore, the services sector – 53.6% of Kenya’s GDP – and its agricultural sector – about 25% of the national GDP – offer “vast potential” for UAE businesses looking for opportunities to expand into Africa, as per the Emirati ministry of foreign trade.
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