Cambodia, UAE sign economic partnership

Cambodia and the United Arab Emirates (UAE) have signed a bilateral comprehensive economic partnership agreement aimed at enhancing trade and investment between the two countries.

The signing ceremony on June 8 was officiated at the Peace Palace by Prime Minister Hun Sen and Thani bin Ahmed Al Zeyoudi, UAE Minister of International Trade.

Eang Sophalleth, Hun Sen’s personal assistant, said after the talks that the UAE, through Al Zeyoudi, was satisfied with the agreement, which is expected to bring the economies and peoples of the two countries closer together.

“This agreement will bring benefits to both countries. The prime minister encouraged the UAE to consider investing in agriculture, as Cambodia has about 6 million tons of rice that can be exported,” he added.

He explained that Hun Sen proposed that the UAE consider setting up rice mills, warehouses and cashew processing facilities

“At the same time, he asked the UAE to consider promoting a double taxation agreement to encourage investors and direct flights between the two countries,” he added.

Ahead of the signing, the UAE delegation met with Minister of Commerce Pansolasak on June 7. This courtesy visit is also an opportunity to discuss the possibility of further strengthening and expanding cooperation in various fields, especially trade and investment. The talks were attended by senior officials, businessmen and investors from both countries, according to the Ministry of Commerce.

“In this spirit, both parties agreed to promote the ratification of this economic agreement so that investors, businessmen, producers, traders as well as consumers of both parties can seize the economic benefits and business and investment opportunities that this agreement will provide in the future,” it added.

Emirati investors and businessmen from fields such as energy, agriculture, ports, logistics and investment committees also introduced themselves during the meeting and discussed the potential for future cooperation in their respective fields.

Later that day, Environment Minister Say Samal met with Al Zeyoudi.

During the meeting, the UAE asked Cambodia to support the hosting of the 28th United Nations Climate Change Summit (COP-28) in Dubai later this year, according to the Ministry of Environment.

Say Samal briefed guests on key areas that could be the basis for boosting bilateral trade between the two countries, such as honey, cashew nuts, agarwood, organic polished and brown rice, and other community products.

Al Zeyoudi said he would send a technical team to study the proposed collaboration.

During a meeting with Tourism Minister Ton Khong, the UAE expressed interest in exploring tourism in Cambodia. Khon told the visiting delegates that Saudi Arabia has many tourism investment opportunities and needs to develop new tourism products to promote its policy of attracting more international tourists.

Hong Wanak, an economist at the Institute of International Relations at the Royal Academy of Cambodia, said that despite the limited trade volume between the two countries, overall relations between Cambodia and the United Arab Emirates are good. He expects the bilateral trade agreement to boost trade and investment.

“The agreement will strengthen trade between Cambodia and the UAE and encourage other Arab countries to establish ties with Cambodia,” he added.

In addition, he also sees another important point, which is Cambodia’s booming agricultural sector.

“The UAE is mostly a desert, so agricultural output is limited. Also, Cambodia now produces products such as electronic components, bicycles and tires, so we can focus on additional exports,” he said.