UAE signs free trade agreement with Indonesia after deals with India, Israel

The United Arab Emirates has signed another trade agreement, this time with Indonesia. 

The UAE signed the Comprehensive Economic Partnership Agreement with Indonesia on July 1. The deal removes a variety of tariffs on goods and services traded between the two countries. The UAE hopes to boost trade with the southeast Asian country to $10 billion annually within five years from the $3 billion traded in 2021, the official Emirates News Agency reported. 

Indonesia also seeks to boost its exports to the Gulf and Middle East with the agreement, according to the Indonesian Ministry of Trade.

The main Emirati exports to Indonesia in 2020 were petroleum and related-materials. The main Indonesian exports to the Emirates were palm oil, jewelry and automobiles, according to the US-based Observatory of Economic Complexity. 

Why it matters: The UAE has signed three trade agreements this year: one each with Indonesia, India and Israel. All the deals similarly removed tariffs, duties, customs and the like with the goal of boosting bilateral trade. 

UAE Trade Minister Thani bin Ahmed Al Zeyoudi said yesterday that he expects the three trade agreements to grow the Emirati economy by 2.6% by 2030. 

Know more: The UAE and Indonesia began talks on the trade deal last September. 

What’s next: Zeyoudi said the UAE will next sign a similar trade deal with Colombia some time in July, according to the Emirates News Agency.