South Korea and the United Arab Emirates (UAE) finalized negotiations on a bilateral Free Trade Agreement (FTA) on Oct. 14, marking South Korea’s 24th FTA and its first with a Middle Eastern country. The Comprehensive Economic Partnership Agreement (CEPA), signed by South Korea’s trade minister Ahn Duk-geun and the UAE’s foreign trade minister Thani bin Ahmed Al Zeyoudi, aims to enhance economic relations and bilateral trade. The agreement will see the removal of tariffs on 92.8% of all traded items by South Korea and 91.2% by the UAE within a decade. This move is expected to benefit South Korean exports of eco-friendly vehicles, weaponry, electronics and fresh food items. Additionally, the UAE’s decision to eliminate a 3% tariff on crude oil over the next 10 years is anticipated to strengthen South Korean refiners’ price competitiveness and ensure stable supplies.

CEPA, set to be officially signed in the first half of the following year, extends beyond trade in goods, as the UAE has committed to opening its online gaming, medical service and other industries to South Korean interests, potentially boosting the presence of South Korean content in the Middle East. This development is significant, given the robust two-way trade between the nations, which stood at approximately $19.5 billion in 2022, with the UAE ranking as South Korea’s 16th major trading partner.