Mozambique and the United Arab Emirates are negotiating a Comprehensive Economic Partnership Agreement for the creation of a Free Trade Area in the markets of goods, services and investments, the Embassy of that Arab country in Maputo announced this week.
In a statement, the Embassy of the United Arab Emirates said that the two countries are working on “removing trade and investment barriers for a wide range of goods and services with a view to promoting bilateral non-oil trade between them”.
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“To this end, the Embassy of the United Arab Emirates in Mozambique has added advantages to economic partnerships through ongoing negotiations that could culminate in the coming months with the conclusion of the Comprehensive Economic Partnership Agreement [CEPA] covering several economic areas that has as its vision the establishment of a Free Trade Area that attracts opportunities for access to markets for goods, services and investment between the parties,” the statement reads.
It adds that economic integration between the two countries “will bring business opportunities particularly for importers and exporters on both sides”, representing “mutual benefits taking into account the strategic, geographical and logistical position of the United Arab Emirates on the one hand, and on the other the vast natural and human resources with emphasis on agriculture that Mozambique has”.
“With the signing of the joint declaration of intent to launch the CEPA negotiations, the United Arab Emirates is committed to strengthening the long-term economic partnership with Mozambique,” the statement added.
It is an understanding based “on mutual interests” that “will establish stronger strategic cooperation and promote innovation in addition to stimulating economic growth and creating job opportunities in both countries”.
According to data from the Embassy, the volume of trade between the United Arab Emirates and Mozambique reached, between 2010 and 2021, 3.7 billion dollars (3.295 million euros). Of this total, $1.5bn (€1.335bn) was direct investment, “and overall CEPA will further enhance trade and investment between Africa and the Middle East”.
“There are several opportunities for closer economic integration between the two countries especially in the areas of agriculture, tourism, infrastructure, technology and renewable energy, at a time when more and more Mozambican entrepreneurs are eager to establish their businesses in Dubai, where they will surely be supported by necessary advisory services,” he also explained.
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The United Arab Emirates ranked among the top 20 recipients of foreign direct investment in 2021, with an annual increase of 4%, set at US$20.7 billion (€18.4 billion), and Mozambique “is among eight countries with which the UAE intends to deepen and strengthen commercial ties for its strategic market”.
The announcement of the intention for a CEPA between that Arab country and Mozambique “reflects the commitment to achieve greater economic progress through trade and investment,” the statement said.
