UAE, Japan finalize trade deal to deepen economic ties

The United Arab Emirates and Japan have completed negotiations on a Comprehensive Economic Partnership Agreement (CEPA), marking Japan’s first such deal with an Arab country and signaling a new phase in economic cooperation between the two nations, WAM reported.

The agreement was announced during a visit to Japan by Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and envoy of the foreign minister, who met Japanese Foreign Minister Toshimitsu Motegi. UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi also took part in the discussions.

Officials from both sides said the deal reflects a shared commitment to strengthening long-standing strategic ties, particularly in trade and investment. The CEPA is expected to expand bilateral commerce, encourage investment flows and increase private-sector collaboration across a range of priority sectors.

These include advanced technology, logistics, cybersecurity, healthcare and education, while also creating opportunities for cooperation in research and development, innovation, smart mobility, energy security, financial services and digital transformation.

The agreement supports the broader goals of the Comprehensive Strategic Partnership signed by the two countries in 2022 and aligns with the UAE’s ambition to build a knowledge-driven, innovation-focused economy.

Al Jaber said concluding the negotiations demonstrates both countries’ determination to expand economic and commercial relations and deepen their strategic partnership.

He said the deal would create new opportunities for cooperation in advanced industries and technology while strengthening supply chains and encouraging greater investment and innovation from the private sector in both countries.

Al Zeyoudi described the outcome of the negotiations as an important step in advancing UAE-Japan economic relations, noting that Japan is one of the world’s largest economies and a member of the Group of Seven (G7).

He said the agreement would help remove trade barriers, facilitate investment and enable businesses in both countries to build stronger partnerships, supporting sustainable growth and shared prosperity.

The conclusion of negotiations comes amid expanding trade ties between the two countries. Non-oil trade between the UAE and Japan reached $20.3 billion in 2025, a 16.7% increase compared with 2024.

The UAE has also emerged as Japan’s largest trading partner in the Middle East and Africa, accounting for about 39% of Japan’s trade with Arab and African countries.

The CEPA initiative is a key pillar of the UAE’s foreign trade strategy. Since launching the program in September 2021, the country has concluded agreements with more than 35 fast-growing economies, providing businesses access to markets that collectively represent nearly a quarter of the world’s population.

The negotiations were concluded during a broader series of high-level meetings in Tokyo aimed at strengthening political and economic cooperation between the two countries.

UAE letter to Japan

Meanwhile, UAE President Sheikh Mohamed bin Zayed Al Nahyan has also sent a letter to Japanese Prime Minister Sanae Takaichi focusing on strengthening bilateral cooperation and advancing the Comprehensive Strategic Partnership between the two countries.

The letter was delivered by Sultan bin Ahmed Al Jaber during a meeting with Takaichi at the prime minister’s office in Tokyo. The meeting was attended by Thani bin Ahmed Al Zeyoudi and UAE Ambassador to Japan Shihab Al Faheem.

During the talks, both sides reviewed ways to expand cooperation within the framework of the Comprehensive Strategic Partnership signed in 2022 and welcomed the successful conclusion of negotiations on the Comprehensive Economic Partnership Agreement.

Al Jaber reaffirmed the UAE leadership’s commitment to deepening ties with Japan and expanding collaboration in areas including the economy, energy, industry, advanced technology, digital transformation, artificial intelligence, space, sustainability, education and culture.

Both countries emphasized that strengthening cooperation in these sectors would support mutual interests and contribute to sustainable development in the UAE and Japan.