UAE, South Korea complete talks for bilateral trade deal

The UAE and South Korea have finalized discussions on a bilateral trade agreement known as a Comprehensive Economic Partnership Agreement (CEPA).

Commerce and investment links between the Gulf state and South Korea have been gradually improving; bilateral non-oil trade reached $3 billion in the first half of 2023, equivalent to the same time last year but up 21% over 2021, according to a statement.

In addition, the Korea Electric Power Corporation and a consortium of Korean enterprises built all four units of the $20 billion nuclear Barakah Power Plant in Abu Dhabi, which went into service in April this year to satisfy the UAE’s domestic energy demands.

South Korea was among the first nations with whom the Gulf State initiated CEPA negotiations in 2021.

However, three months later, the Asian state resurrected dormant Free Trade Agreement (FTA) discussions with the six-member Gulf Cooperation Council grouping, of which the UAE is a part.

“We began discussions with Korea early this year because we were both eager to finalize an agreement and promote our respective economic agendas,” Thani Al Zeyoudi, UAE minister of international trade, told Reuters, citing that GCC FTA negotiations were still underway.

As part of a plan to diversify its economy away from oil, the UAE has inked multiple CEPAs, notably with former political adversaries Israel and Turkey, as well as Asian behemoths India and Indonesia.