UAE-Chile Economic Partnership Agreement Takes Effect, Paving Way for Growth
Abu Dhabi, The Gulf Observer: The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Chile has officially entered into force, marking a transformative step in bilateral economic relations. The agreement is set to significantly boost trade, foster investment, and create new opportunities across key sectors, reflecting the shared commitment of both nations to sustainable economic growth.
In 2024, the UAE’s non-oil foreign trade with Chile reached US$270 million, while trade in the first half of 2025 rose to US$153 million, recording a 7.1% year-on-year increase. With the CEPA now operational, bilateral trade is projected to surpass US$500 million within five years, driven by enhanced market access and collaboration in strategic sectors.
Dr. Thani Al Zeyoudi, Minister of Foreign Trade, described the agreement as a milestone in UAE-Chile relations. “The implementation of the UAE-Chile CEPA marks a significant milestone in our economic relations, paving the way for enhanced collaboration and investment opportunities in vital sectors such as renewable energy, agriculture, tourism, and infrastructure. This agreement solidifies our shared commitment to fostering open, rules-based trade, which is essential for achieving our mutual economic goals,” he said.
Chile, with a GDP exceeding US$300 billion, is a leading global producer of copper and lithium and has robust manufacturing, financial services, energy, tourism, and agriculture sectors, offering rich opportunities for UAE investors. The CEPA is expected to facilitate two-way investment flows, expanding on existing UAE investments such as Abu Dhabi-based ADQ’s acquisition of Verfrut, a major fruit exporter, and ADIA’s investment in MUT (Mercado Urbano Tobalaba), Chile’s first urban market.
The agreement will further strengthen the UAE’s role as a global supply-chain hub, linking South America with markets in Africa, Europe, and Asia. Beyond trade in goods, the CEPA will expand services trade and stimulate new opportunities in logistics, maritime, travel, tourism, and aviation services. It is also expected to accelerate investment in critical infrastructure, such as roads and ports, and support the UAE’s food security objectives through enhanced collaboration in agriculture.
The CEPA programme forms a key part of the UAE’s foreign trade strategy, which targets a total trade value of US$1 trillion by 2031 and aims to double the size of the economy to over US$800 billion by the same year. Since its launch in September 2021, the programme has successfully concluded 32 agreements, enhancing market access for UAE businesses to economies comprising nearly a quarter of the world’s population.
