UAE seeks stronger economic ties with Mongolia

Discussions between the two nations are important in the context of the UAE’s recent CEPA agreements

The UAE is planning to boost economic relations with Mongolia. Reuters

The UAE is moving to enhance its economic relations with Mongolia, state news agency Wam reported on Tuesday.

Abdullah bin Touq, Minister of Economy, held a meeting with Odonbaatar Shijeekhuu, ambassador extraordinary and plenipotentiary of Mongolia to the UAE, to explore opportunities to strengthen trade and economic co-operation between the two countries, the report said.

"Mongolia is a promising market with which we aspire to increase trade and investment exchanges, especially in sectors such as tourism, aviation, logistics, agriculture and animal food trade, food security, apart from other strategic areas of shared interest,” Mr bin Touq said.

During the meeting, the minister emphasised the UAE's commitment to boosting its economic and trade partnership with Mongolia.

The UAE is Mongolia's number one Arab and GCC trade partner as of 2021.

The non-oil trade between the two countries grew 119 per cent in the first quarter of 2022 compared with the same period in 2021. The UAE's non-oil exports to Mongolia increased 81 per cent during the period, led by medical and pharmaceutical industry supplies, construction material, food products, petrol and mineral oil, the report said.

“The partnership further aims to boost private sector co-operation between the two sides by highlighting the available opportunities in our markets, exploring new collaboration mechanisms and facilitating the exchange of expertise,” Mr bin Touq said.

The minister’s discussions with the Mongolian official explored the UAE's strategy to attract talent and competencies from all vital sectors and explained the country’s Comprehensive Economic Partnership Agreements (CEPA) model, through which the country has signed three agreements so far, with India, Indonesia and Israel.

A similar pact with South Korea is expected to be finalised by the end of 2022, aimed at enhancing the economic partnership between the two countries to a minimum of $20 billion in the next three to five years.

The UAE has also begun to hold trade negotiations with countries such as Turkey, Georgia and the Philippines.

In July, the UAE’s Ministry of Economy announced that the UAE and Kenya will soon start negotiations on a CEPA.

Through these agreements, the UAE aims to expand its partnerships to reach strategic global markets, in line with the Principles of the 50 and the UAE Centennial 2071 goals to build a highly competitive national economy based on knowledge and innovation.