The UAE and Kenya have signed a Comprehensive Economic Partnership Agreement (CEPA) aimed at strengthening trade and investment between the two nations. This agreement is the first bilateral trade deal the UAE has pursued with an African country, reflecting its strategy to diversify its economy beyond oil.
In the first nine months of 2024, bilateral non-oil trade between the UAE and Kenya reached $3.1 billion, marking a 29.1% surge compared to the same period in 2023. This growth underscores the deepening economic ties facilitated by the CEPA.
Kenya’s economy, one of Africa’s most promising, recorded a real GDP growth of 5.6% in 2023. Projections estimate an average growth of 5.2% between 2024 and 2026. Key sectors such as services, accounting for 53.6% of Kenya’s GDP, and agriculture, comprising around 25% of the national GDP, present significant opportunities for UAE businesses seeking regional expansion.
The CEPA is expected to boost investment flows into high-potential sectors, including information and communications technology (ICT), banking, tourism, infrastructure, and renewable energy. This aligns with the UAE’s broader economic agenda, which emphasizes foreign trade as a cornerstone of its efforts to double the economy’s size to over $800 billion by the end of the decade.
The agreement also aims to remove trade barriers on a wide range of goods and services, creating new opportunities for importers and exporters in both countries. Kenyan companies are expected to leverage the UAE’s geographic and logistical position to enhance their market reach.
This development is part of the UAE’s ongoing efforts to strengthen economic ties with African nations, following similar agreements with countries like Mauritius and the Republic of the Congo. The CEPA with Kenya is anticipated to further enhance the UAE’s presence in Africa as a trusted partner and investor.
