Kenya-UAE deal could be a catalyst for job creation and an economic booster

President William Ruto and His Highness Sheikh Mohamed bin Zayed Al Nahyan during the signing of a historic Comprehensive Economic Partnership Agreement (CEPA) between Kenya and the United Arab Emirates in Abu Dhabi. [PCS] The recent signing of a Comprehensive Economic Partnership Agreement (CEPA) between Kenya and the United Arab Emirates marks a significant milestone in their bilateral relations, experts say. The landmark deal, the first of its kind for the UAE with a mainland African nation, was signed last week and is poised to unlock significant economic opportunities for Kenya, fostering job creation and accelerating economic growth. "This agreement is a game-changer for Kenya," stated President William Ruto during the signing ceremony in the UAE. "It will unlock significant economic potential, create jobs for our people, and enhance our competitiveness in the global market." The CEPA aims to deepen the existing trade relationship between the two countries. The UAE is currently Kenya's second-largest source of imports and sixth-largest export destination, with bilateral trade surpassing $3.3 billion in 2023. The agreement seeks to further enhance this relationship by eliminating trade barriers, improving market access, and fostering increased investment flows. READ: Ruto now turns to UAE to grow jobs, economy with new trade deal Key sectors poised to benefit significantly include agriculture, tourism, and technology, traders and officials say.Kenyan agricultural exports, particularly meat, fruits, vegetables, and flowers, are expected to experience a substantial surge in the UAE market. The agreement also includes provisions for enhanced cooperation in services, with Kenyan professionals in areas such as finance, education, and technology poised to gain greater access to the lucrative UAE market."The Kenya-UAE CEPA deal represents a significant milestone in Kenya's economic development," said economist Ian Njoroge. "By leveraging this strategic partnership and learning from Dubai's success as a global trade hub, Kenya can attract investments, create jobs, and solidify its position as a key player in the global trade landscape."Thani Al Zeyoudi, the UAE's Trade Minister, stated on the sidelines of Abu Dhabi Sustainability Week that Kenya will be a gateway to East Africa for the UAE. Dubai's meteoric rise as a global trade hub, driven by its strategic location, world-class infrastructure, and business-friendly policies, provides a valuable model for Kenya.By leveraging the UAE's expertise and connections, Kenyan businesses can gain access to global supply chains, expand their reach into new markets, and enhance their competitiveness, Kenyan officials reckon. The UAE, with its ambitions to diversify its economy away from oil dependence, presents a significant opportunity for Kenya to attract substantial Foreign Direct Investment from the UAE. These investments can fuel the development of key sectors, creating a ripple effect of job creation across the Kenyan economy.Furthermore, the UAE's position as a global trade and logistics hub provides Kenyan businesses with enhanced access to wider regional and international markets.This expanded reach fosters export diversification and strengthens Kenya's position as a key player in the global trade landscape. "This agreement strengthens Kenya's position as a gateway to East and Southern Africa and reaffirms the UAE's role as a global logistics and financial hub connecting the Middle East, Asia, and beyond," State House said in a statement. ALSO READ: Can UAE deal make Kenya Dubai of Africa? The deal complements Kenya's existing trade agreements with the European Union, the United Kingdom, and the African Continental Free Trade Area, creating a robust network of trade partnerships.These agreements, collectively, offer Kenyan businesses duty-free access to markets representing nearly half of the world's Gross Domestic Product. "Today, Kenya has become Africa's gateway to the world, with duty-free, quota-free access to global markets representing nearly half of the world's GDP," said State House. Alongside Kenya, the UAE also signed trade agreements with Malaysia and New Zealand as part of efforts by the UAE to strengthen its post-oil economy plans. The International Monetary Fund said in a recent statement that economic growth in the UAE is also driven by domestic activity in sectors such as tourism, construction, and financial services.

Kenya-UAE deal could be a catalyst for job creation and an economic booster

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