In a move that demonstrates the UAE’s diversification beyond traditional oil and gas markets, the country has signed a Comprehensive Economic Partnership Agreement (CEPA) with Chile.
In a LinkedIn post, H.E. Dr. Thani Al Zeyoudi, UAE’s Minister of State for Foreign Trade and Minister in charge of Talent Attraction and Retention, highlighted the importance of this partnership as a crucial element of the UAE’s broader energy transition strategy.
Dr. Al Zeyoudi emphasised the UAE’s focus on engaging with emerging economies, such as Chile, which are set to become new centres of growth and innovation, particularly in renewable energy, fintech, manufacturing, and logistics. He noted that this agreement aims to nearly triple non-oil bilateral trade by 2030 and significantly boost UAE exports, demonstrating the nation’s commitment to diversifying its economic foundation and exploring new opportunities beyond the oil and gas sector.
Dr. Al Zeyoudi highlighted Chile’s significance, stating, “As we expand our network of trading partners, we are not only strengthening our position as a global trade hub but also ensuring sustainable growth. The agreement with Chile, the world’s largest copper producer and a key supplier of agricultural products, is set to increase non-oil foreign trade value and boost non-oil exports, contributing to economic diversification and resilience.”
The UAE’s interest in Chile stems from its advanced capabilities in renewable energy, particularly in wind and geothermal sectors, which align with the UAE’s ambitious goals to diversify its energy portfolio and reduce its carbon footprint.
Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, stated, “Chile has become an essential partner in our energy transition plans. This agreement will accelerate our progress in clean and renewable energy technologies, policy best practices, and smart grid development. Chile’s leadership in wind and geothermal power offers an excellent opportunity for deeper engagement as we aim to establish ourselves as champions of renewable energy.”
Moreover, Dr. Amna bint Abdullah Al Dahak, Minister of Climate Change and Environment, emphasised the environmental and strategic significance of the partnership. “This agreement is a critical addition to our foreign trade agenda, reinforcing our commitment to environmental sustainability and food security. Chile’s focus on sustainable finance and climate adaptation strategies will inform and inspire our efforts towards achieving carbon neutrality by 2050,” she remarked.
The CEPA is expected to create robust commercial and investment ties between the UAE and Chile, providing new opportunities for businesses and investors in both nations.
