The recent Comprehensive Economic Partnership Agreement (Cepa) signed between Colombia and the UAE is poised to usher in significant investment opportunities, particularly in sectors such as green hydrogen and the digital economy. Colombia aims to attract a substantial investment ranging between $600 million to $700 million from the UAE following the agreement.
The trade, industry, and tourism minister of Colombia, German Mendoza, emphasized that this new deal will not only boost trade and investment cooperation but also foster collaboration in various sectors crucial for economic growth. With the participation of both countries’ private sectors, the agreement is expected to have a positive economic impact.
This partnership is viewed as a gateway to establish a new trade corridor connecting South America with the Middle East, tapping into markets with over 800 million consumers. The strengthening economic ties between the UAE and Colombia are evidenced by the significant increase in non-oil trade, which surged by 43% in 2023, reaching a record $53.1 million.
Moreover, both nations have inked cooperation agreements in renewable energy, environment, hydrogen, travel, free zones, and artificial intelligence, signaling a comprehensive approach to collaboration across various sectors.
President Sheikh Mohamed, who witnessed the signing of the agreement alongside Colombian President Gustavo Petro, highlighted the promising prospects of the UAE-Colombia Cepa in deepening economic ties and facilitating market access for businesses.
The UAE’s interest in investing in Colombia’s green hydrogen sector aligns with its ambition to become a major hydrogen producer and exporter. With plans to export hydrogen to global markets, the UAE is actively working on standardizing certification processes in collaboration with international organizations.
This endeavor forms part of the UAE’s broader strategy to bolster non-oil foreign trade, aiming to exceed Dh4 trillion ($1 trillion) by 2031 through forging new trade alliances. With a series of Cepas already concluded with various nations, the UAE is positioning itself as a key player in global trade and investment, leveraging its strengths in sectors such as renewable energy and technology.
