The Urgency of the UAE-Indonesia CEPA and the UAE’s Role in the G20 (By: Minister of Foreign Affairs of UAE)
By: Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation of the United Arab Emirates
The recent signing of the Comprehensive Economic Partnership Agreement (CEPA) between Indonesia and the United Arab Emirates marks an important milestone in a 46-year relationship. These efforts have successfully laid the foundation for a genuine partnership that will create new opportunities, encourage investment and help accelerate the global economic recovery.
The CEPA, which was signed in the presence of UAE President Sheikh Mohamed bin Zayed Al Nahyan and the President of the Republic of Indonesia President Joko Widodo in Abu Dhabi on July 1, 2022, will help boost bilateral trade to US$10 billion in five years, boosting the trillion-dollar Islamic economy at once, accelerate our energy transition towards clean and renewable technologies.
For the UAE, the importance of a trade deal between these two most forward-looking and dynamic Islamic economies cannot be underestimated.
The CEPA will encourage increased development and the emergence of new opportunities for halal economic growth which is estimated to be worth USD 3.2 trillion by 2024. This step will also accelerate the realization of investment projects in priority sectors such as agriculture, energy and infrastructure—particularly logistic while encouraging future developments,vcooperation in the fields of tourism, entrepreneurship, digital transformation and health.
The signing of the CEPA is the latest step in the UAE’s bold trade and investment agenda, which is based on building forward-looking, constructive agreements with strategic partners around the world.
After finalizing agreements with India and Israel earlier this year, we believe this approach will further strengthen our status as a global trade and logistics hub, open up new markets for our exporters, secure supply chains, increase investment flows, while also spurring greater economic growth in area.
Indonesia is a natural partner for the UAE in various fields. We share a rapidly growing economy, as well as deep business, cultural and diplomatic relations. Trade between our countries also continues to grow rapidly, with bilateral non-oil and gas trade reaching US$3 billion in 2021, up 62 percent in 2020 and 17 percent in 2019.
We have collaborated closely on various strategic projects, including some of the largest in the world. For example, the Cirata floating solar power plant (PLTS). The UAE also pledged US$10 billion to the new Investment Management Agency (LPI). On the other hand, the Indonesian government became the largest sharia bond issuer on Nasdaq Dubai in May 2019.
In addition, the UAE-Indonesia CEPA will unlock the potential of the South-South Corridor in Africa, the Middle East and Asia, accelerating the shift towards developing economies across the region. For Indonesian companies, there is a promising business environment in the UAE, its strategic location, logistics capabilities, as well as access to markets in Africa and Europe that offer unlimited prospects for regional and global growth.
In many ways, the UAE-Indonesia CEPA reflects the many shared interests, values and ideals of the two countries, stemming from our history as a Muslim-majority country with a young, multi-ethnic, multi-religious population and a strong trading history.
Our shared interests and values mean that both countries share a common approach to critical issues on the global economic agenda. As a guest country in Indonesia’s G-20 Presidency, the UAE hopes to support Indonesia’s efforts and collaboratively seek solutions to some of the most pressing global challenges with members of the international community.
Many areas are important to Indonesia and the global community, but also very important to us. For example, related to climate change, which is also in line with the objectives of the Indonesian Presidency in the G-20, the UAE plans to bridge the gap between developing and developed countries.
Highlight the countries most vulnerable to climate change, ensure secure financial commitments, and mobilize financial and technological solutions with the aim of creating a new low-carbon economy paradigm.
The UAE thanks the Republic of Indonesia for its invitation to participate in the 2022 G-20 Summit, as a follow-up to our participation as invited guests of Saudi Arabia at the G-20, two years ago.
We share a number of G20 priorities in the Indonesian presidency, such as: global health, digital transformation, food security, and a sustainable energy transition, which are issues that are currently of global concern.
The UAE is committed to working with Indonesia to promote fair trade, economic growth and development worldwide, both through the G-20 framework, and over the long term. It is an important part of our country’s economic strategy following the recent celebrations of the UAE’s 50th anniversary, while also representing the way we view ourselves on the global stage.
Indonesia is one of our closest strategic partners. The UAE has worked together in a spirit of cooperation and unity for decades to continue to promote social and economic development and open up opportunities for our people.
The signing of the CEPA reflects our shared desire to enhance and broaden the horizons of this collaboration.
We look forward to a new, even more prosperous, chapter in our partnership.(T/RE1)
Mi’raj News Agency (MINA)
