The recently-signed trade pact between the UAE and Indonesia could see trade rise from $3 billion to $10 billion (AED11 billion to AED37 billion) within five years.
On Friday, the UAE signed a Comprehensive Economic Partnership Agreement (CEPA) with Indonesia, which will effectively remove tariffs and boost bilateral trade.
Up to 83 percent of the UAE exports will benefit from the immediate elimination of customs tariffs between the two nations.
Abdullah bin Touq Al Marri, Minister of Economy, said that the deal will enable the two nations to get bilateral trade up from US$3 billion annually in 2021 to in excess of US$10 billion annually within five years.
He explained that the UAE-Indonesia CEPA is tailored to drive trade in a number of sectors including healthcare, transportation, education, telecommunications, construction and Islamic finance.
It will also allow more investments in priority sectors, including logistics, renewable energy, manufacturing and the halal economy. “The partnership is conducive to drawing foreign investments from other countries interested in having access to the two nations’ markets,” he added.
“We succeeded in reaching a balanced agreement that ensures a win-win partnership while protecting each other’s domestic industries.”
The global Islamic economy will amount to US$3.2 trillion by 2024, making it one of the fastest growing sectors in the global economy.
Zulkifli Hasan, Minister of Trade of Indonesia, said that the agreement is the first of its kind signed by Indonesia with one of the region’s countries, expressing his optimism that it will further enhance cooperation in service of their mutual interests.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, highlighted the role the UAE-Indonesia CEPA will play in helping achieve the UAE’s goal to increase the size of its economy to AED 3 trillion by 2030.
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