UAE-Chile CEPA Enters Into Force, Ushering in a New Era of Economic Cooperation
The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Chile has officially come into effect, signalling a transformative moment in the economic ties shared by these nations. This pivotal agreement is positioned to significantly boost bilateral trade and create new investment opportunities in sectors such as renewable energy, agriculture, tourism, and infrastructure.
In 2024, the UAE’s non-oil foreign trade with Chile reached US$270 million. The upward trajectory continued in the first half of 2025, with bilateral trade rising to US$153 million, marking a 7.1% year-on-year increase. With the implementation of the CEPA, estimates project that bilateral trade will surpass US$500 million within five years, spurred by enhanced market access and cross-sector cooperation.
Dr. Thani Al Zeyoudi, Minister of Foreign Trade, stated:
“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.”
Chile’s economy, valued at over US$300 billion, features robust manufacturing, financial services, energy, tourism, and agriculture industries. As a leading global producer of copper and lithium, Chile presents substantial opportunities for UAE investors. The CEPA facilitates the growth of two-way investment flows, building on current UAE investments such as ADQ’s acquisition of Verfrut, a major fruit exporter, and ADIA’s investment in MUT (Mercado Urbano Tobalaba), the country’s first urban market.
Furthermore, the CEPA strengthens the role of the UAE as a global supply-chain hub, linking South America with Africa, Europe, and Asia. The agreement extends beyond goods, expanding trade in services and unlocking new growth in logistics, maritime, travel, tourism, and aviation services.
Strategically, the agreement will accelerate investment in critical infrastructure such as ports and roads, and will advance the UAE’s food security objectives through enhanced agricultural collaboration.
The CEPA programme stands as a key pillar of the UAE’s foreign trade strategy—which targets a total trade value of US$1 trillion by 2031 and envisions doubling the national economy to over US$800 billion in the same period. Since its initiation in September 2021, the programme has led to 32 agreements, expanding trade relations and providing UAE businesses access to markets representing nearly a quarter of the world’s population.
Team V.4-EM-UAE
