The UAE continues its strategic economic expansion by finalizing trade negotiations with Kenya, marking a significant milestone in bilateral relations and economic diversification efforts.
The recent conclusion of trade negotiations between the UAE and Kenya underscores a shared commitment to bolstering economic cooperation and investment ventures. The Comprehensive Economic Partnership Agreement, poised to be officially signed in the near future, promises to fortify supply chains and facilitate investments across various sectors including logistics, healthcare, travel and tourism, infrastructure, and information and communication technology.
The Emirati news agency WAM reported that UAE Minister of Foreign Trade Thani bin Ahmed Al-Zeyoudi and Kenyan Cabinet Secretary for Investments, Trade and Industry Rebecca Miano signed a joint statement at the conclusion of the talks on the Comprehensive Economic Partnership Agreement in Dubai on Thursday.
Mutual benefits and growth prospects
Both nations anticipate substantial benefits from the trade agreement, with Al-Zeyoudi affirming the UAE’s dedication to strengthening economic ties with Africa. The agreement is expected to enhance Kenyan exporters’ access to prominent markets in Asia and the Middle East, opening new avenues for economic growth and prosperity.
In a statement carried by WAM, Al-Zeyoudi hailed the agreement as “a testament to our commitment to strengthening economic ties with the African continent and to creating new opportunities for businesses and investors in both of our countries.” He added, “We look forward to deepening our relationship with Kenya and to further expanding our presence in Africa as a trusted partner and investor.”
Zeyoudi noted that non-oil trade between the United Arab Emirates and Kenya in 2023 reached $3.1 billion, up by 26.4% compared to 2022, adding that the two countries will now work to expand in other sectors such as food production, mining, technology and logistics.
Diversification and economic expansion
Amidst efforts to reduce reliance on oil revenues, the UAE has embarked on a comprehensive economic diversification strategy, exemplified by its ambitious Projects of the 50 initiative. This initiative aims to propel the UAE’s growth trajectory and transform it into a global hub across multiple sectors. The trade agreement with Kenya marks a pivotal step in this journey, following similar agreements with India and Mauritius, among others.
The UAE’s growing presence in Africa reflects its strategic vision and commitment to fostering mutually beneficial partnerships. With investments in the continent surpassing USD 60 billion over the past decade, the UAE emerges as a prominent investor in Africa, positioning itself as a key player in the region’s economic landscape.
The UAE-Kenya trade deal serves as a testament to the evolving economic dynamics in Africa and underscores the importance of strategic collaboration in driving sustainable growth and prosperity.
African investments
According to the fDi Markets tracking database, the Arab Gulf country ranked as the fourth-largest investor globally in Africa between 2012 and 2022, surpassing the other Arab Gulf states. Emirati investments in the continent reached nearly $60 billion during that period, more than double that of Saudi Arabia, according to an fDi Markets report.
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