Executive summary

A Comprehensive Economic Partnership Agreement (CEPA) signed by the United Arab Emirates (UAE) with the Republic of Korea entered into force on 1 May 2026.The UAE-Korea CEPA is designed to liberalize trade in goods and services, enhance market access, and promote investment and private-sector collaboration. The agreement provides for the elimination or reduction of tariffs on approximately 91.2% of traded goods with duties to be progressively eliminated in accordance with each party's Schedule of Tariff Commitments over a period of up to 10 years. Representing the Republic of Korea's first CEPA with a Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) country, the CEPA aligns with the UAE's broader strategy to expand its global trade network, enhance supply chain resilience and reinforce its position as a leading global trade hub.

Detailed discussion

Negotiations on the CEPA commenced on 18 September 2023 and concluded on 14 October 2023, followed by the official signing of the agreement on 29 May 2024.

The CEPA builds on the strong existing economic relationship between the UAE and the Republic of Korea by establishing a structured, rules-based framework encompassing trade in goods and services, investment facilitation and broader economic cooperation. Pursuant to the UAE-Republic of Korea CEPA, the parties have undertaken tariff liberalization commitments covering approximately 91.2% of tariff lines, with duties to be progressively eliminated in accordance with each Party's Schedule of Tariff Commitments over a period of up to 10 years. This includes the elimination of more than 90% of tariffs on trade in goods, delivering significant tariff liberalization that improves market access for exporters in both jurisdictions and reduces the costs associated with cross-border trade.

For manufactured products, the CEPA adopts a "sufficient working or processing" rule, which may be satisfied either through a change in tariff classification or where the product undergoes processing that results in a value content of not less than 40% of the product's free-on-board (FOB) price. Beyond tariff measures, the agreement addresses non-tariff barriers, enhances transparency and promotes regulatory alignment to facilitate more efficient trade flows. It also places particular emphasis on cooperation in future-oriented and priority sectors, including advanced technology, manufacturing, renewable energy, agriculture, natural resources, health care and logistics. Collectively, these provisions are intended to support increased trade and investment, while providing a predictable and stable environment for long-term business planning and sustained economic collaboration between the two economies.

Key features of the UAE-Korea CEPA

The UAE-Korea CEPA:

• Delivers tariff liberalization by eliminating or reducing customs duties on over 90% of bilateral trade value, enhancing market access and lowering trade costs
• Introduces flexible, business-friendly rules of origin that streamline compliance and facilitate access to preferential market treatment
• Streamlines customs procedures and reduces administrative burdens, which lowers trade costs and speeds up logistics
• Opens new opportunities for service providers, especially in professional services, information and communications technology (ICT), finance, logistics, tourism and creative industries, through clearer market-entry rules and more predictable regulatory frameworks
• Strengthens the digital trade framework by ensuring nondiscriminatory treatment of digital products, enabling cross-border data flows, promoting paperless trade tools (such as e-invoicing and e-authentication) and supporting a secure and trustworthy online marketplace for businesses and consumers
• Strengthens innovation and knowledge-based industries by enhancing intellectual property (IP) protection and enforcement, fostering cooperation between IP authorities and encouraging technology transfer and growth in creative sectors
• Facilitates and promotes investment by improving transparency, simplifying administrative processes, enhancing regulatory cooperation and providing a stable, predictable environment for investors
• Preserves the application of trade remedies, including anti-dumping, countervailing and safeguard measures, in line with World Trade Organization (WTO) rules, ensuring protection against injury of a party's domestic industry against unfair trade practices
• Enhances economic cooperation in strategic sectors by supporting joint initiatives, capacity building and technology transfer, generating tangible economic benefits for both parties

Implications

From a business perspective, the entry into force of the UAE-Korea CEPA is expected to enhance market access, reduce trade-related costs, and provide greater legal and regulatory certainty for companies operating across both jurisdictions. UAE exporters may benefit from preferential tariff treatment and expanded access to Asian markets, while Korean businesses may gain improved access to the UAE and the wider GCC region. The agreement also strengthens the framework for cross-border investment, joint ventures and supply chain integration, particularly across high-growth and strategic sectors. More broadly, the CEPA supports the diversification of trade routes, enhances supply chain resilience and enables deeper private-sector engagement between the UAE and Asia.