Ruto now turns to UAE to grow jobs, economy with new trade deal

President William Ruto arrives in Abu Dhabi, United Arab Emirates, to attend the Abu Dhabi Sustainability Week Summit, on January 13, 2025. [PCS] Kenya and the United Arab Emirates (UAE) signed a Comprehensive Economic Partnership Agreement (CEPA) on Tuesday aimed at boosting trade, investments and creating jobs. The deal, the first of its kind for the UAE with an African nation, is seen as a strategic move for the Ruto regime which is under pressure to grow jobs and boost incomes locally. "President William Ruto and His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, today presided over the signing of the Kenya-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA), marking a historic milestone in the economic relations between the two nations," said State House in a statement. "The CEPA is the first agreement of its kind signed by the UAE with a mainland African country, representing a transformative step in enhancing trade, investment, and economic cooperation." Kenya under the deal will aim to solidify its position as a gateway to East Africa, while the UAE aims to expand its influence in African markets and diversify its oil-based economy. President Ruto speaking in Dubai after the deal signing said he is banking on the new trade deal to boost job creation and accelerate economic growth. The deal, he said, aims to significantly increase trade in goods and services, attract investment, and unlock new opportunities for Kenyan businesses. "The 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," said the President. UAE's Dubai has emerged as a symbol of prosperity, luxury, wealth and economic growth. Dubai is the most populated city in the UAE and is renowned for luxury shopping and modern architecture represented by the likes of Burj Khalifa, which stands 830 meters tall and dominates the skyline as well as a bustling nightlife. Nairobi, on the other hand, shares some of these characteristics, albeit on a smaller scale due to varying economic strength and the number and quality of investors in each city. And now like Dubai, the fortunes of Nairobi could change significantly following the conclusion of the comprehensive economic partnership agreement between the UAE and Kenya. The UAE is Kenya's second-largest source of imports and sixth-largest export destination, with bilateral trade reaching $3.3 billion (Sh425.7 billion) in 2023, more than double the $1.4 billion recorded a decade ago. . The CEPA aims to further deepen this relationship by eliminating trade barriers, improving market access, and fostering investment. Key sectors expected to benefit from the agreement include agriculture, tourism, and technology. Kenyan exports of goods to the UAE are projected to increase significantly, particularly in areas like meat, fruits, vegetables, and flowers. The agreement also includes provisions for enhanced cooperation in services, including professional services, tourism, and the digital economy. Years of growth have transformed Dubai from a desert backwater into a trade and tourism hub popular with global professionals. The Gulf Emirate is popular with global expatriates due to amenities such as security and working systems. Manmade lakes and islands, air-conditioned malls, and an indoor ski slope pepper Dubai's desert. And now President Ruto reckons the two regional hubs can collaborate better to tap from each other's strengths on the back of the new trade deal. This growth positions the UAE as Kenya's sixth-largest export destination and its second-largest source of imports, accounting for 16 per cent of Kenya's total imports. "Trade between Kenya and the UAE has more than doubled over the past decade. In 2023, total trade between the two countries reached Sh445 billion, with the UAE ranking as Kenya's sixth-largest export destination and second-largest source of imports, accounting for 16 per cent of Kenya's total imports," said State House. "Kenya's key exports to the UAE include agricultural products such as meat and meat products, with Kenya exporting Sh9.9 billion worth of these products to the UAE in 2023, representing more than half of the country's total meat exports (Sh18.3 billion)." The CEPA is expected to further cement this relationship, facilitating the flow of goods and services and promoting investment. The agreement outlines a framework to govern trade and investment, focusing on liberalising the market for enhanced trade in goods, including key exports such as tea, meat, and horticultural products. The CEPA emphasises cooperation in the agricultural sector, where Kenya has significant untapped potential. In 2023, the UAE accounted for $74 million (Sh9.5 billion) of Kenya's total meat exports of $136 million (Sh17.5 billion), while various fruits and vegetables also showed promising export figures. President Ruto highlighted the importance of diversifying exports to include more value-added products, projecting that the deal would open new markets for Kenyan farmers and small businesses. Additionally, the agreement includes provisions for trade in services, recognizing the sector's role in economic growth. Key areas such as professional services, the digital economy, and education are expected to benefit, with opportunities for Kenyan service providers to access the UAE market. The CEPA is a strategic move as Kenya seeks to strengthen its position as a gateway to East and Southern Africa, while the UAE aims to expand its influence in African markets. Analysts say the pact is very critical to Kenya because the East African economy was one of the first African countries with which the UAE launched bilateral trade deal talks in 2022 as part of a strategy to diversify its oil-based economy. Non-oil trade between the Gulf state and Kenya reached $3.1 billion in 2023, up 26.4 per cent in 2022.

Ruto now turns to UAE to grow jobs, economy with new trade deal

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

Similar Articles

Sacco-led youth credit expands as informal finance fills lending gap

Proposed advisory council to strengthen cooperatives' governance

How fuel crisis sparked Kenya's electric cars investment frenzy

Low-standard fuel imports set off alarm bells yet prices remain high

DIGGER JOBS

Digger Motors

Digger Real Estate

Ruto now turns to UAE to grow jobs, economy with new trade deal

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS