UAE–Korea CEPA Enters Final Stages as Non-Oil Trade Reaches $6.6 Billion in 2024

The CEPA between the UAE and South Korea is proceeding in its final line as non-oil trade hits $6.6 billion in 2024. This is the last stage and, according to analysts, will result in increased bilateral relations between the two countries and better economic cooperation between them. Although the focus of this agreement is mainly on diversifying trade away from hydrocarbons, there are arguments that likely downstream impacts will be seen in world oil trade in UAE, particularly since energy cooperation is a fundamental pillar in both countries’ long-term planning.

CEPA Nears Completion After Years of Negotiations

The CEPA, in its final processes, was concluded during high-level UAE-Korea business roundtable discussions in Abu Dhabi, by the Minister of State for Foreign Trade of the UAE, Dr. Thani bin Ahmed Al Zeyoudi. He stated that both countries are now finalizing the deal for the end of 2025. The CEPA implementation shall see reduced tariffs and streamlined customs processes, and will create an advantageous environment for trade in goods and services and the flows of investment.

This progress showcases a mutual commitment to deepening economic ties further. CEPA is intended to enhance market access for firms on both sides, creating fresh opportunities for cooperation and laying the foundations for more focused inter-party partnerships in the future. Although non-oil trade garners most attention in the conversations, much larger strategic considerations may also be in play for the world oil trade in the UAE in the years to come.

Non-Oil Trade Between UAE and Korea Surges to $6.6 Billion

Non-oil bilateral trade between the UAE and Korea achieved the $6.6 billion milestone in 2024, further reflecting a strong appetite for collaboration across various advanced industries, tech, manufacturing, food products, and industrial goods. This reflects more than an 11% increase in the past couple of years, signifying a still-strong partnership.

In the first half of 2025 alone, bilateral trade was $3.1 billion and advancing. UAE’s broader non-oil foreign trade progressed immensely, crossing milestone gains along the way, which also reinforces the UAE’s sustaining success story in diversifying its economy.

These numbers reflect strongly the UAE’s long-term vision of transition from a hydrocarbon economy into a diversified regional trade hub, a transfer that naturally creates the shifting strategic balance between non-oil expansion and world oil trade in UAE.

Energy and Technology at the Core of the New Partnership

The UAE and Korea recognize, however, that energy is still a fundamental pillar of bilateral cooperation, even though CEPA negotiations have greatly emphasized non-oil industries. Over 25 private sector companies attended the UAE-Korea business roundtable in Abu Dhabi, encompassing industries in AI, food manufacturing, cosmetics, and finance, but vowed to focus less on less-important petroleum investment and nuclear energy cooperation.

Dr. Al Zeyoudi emphasized that peaceful nuclear energy cooperation initiatives, hydrogen initiatives, and modernization of energy infrastructural development are expected to issue general primacy to the relations between UAE and Korea. Korean companies have long been in the game of UAE energy dynamics, nuclear development, in particular, and with CEPA offering smoother investment terms, this will now accelerate.

Potential Impact on the Global Oil Dynamics

Oil production in the UAE is still among the top in the world; although non-oil trade accelerates at a breathtaking rate, hydrocarbons still account for a big share of the national economy. This is the point that interests many analysts regarding whether some CEPA-driven energy cooperation could have a potential impact on the world oil trade in UAE.

If the Korean companies ramp up their investments in refining, storage, or distribution, then a change in the UAE oil trading nature may take place. The focus of the UAE could shift from mainly crude exports to value-added refined products or integrated energy solutions. This change would position the country differently in the global markets; no longer just a raw energy supplier, but rather a strategic partner in energy development.

A Dual Strategy: Diversification and Energy Strengthening

The economic policy of the UAE has always addressed these two wider goals:1650937 Creating non-oil trade and strengthening its leadership in global energy. The CEPA addresses both of these targets.

For non-oil trade, new markets are opening up, and this inspires industries built on innovation. For energy, it forms the basis for long-term cooperation that will continue to define world oil trade in UAE, particularly in areas like petrochemicals, nuclear, and advanced oil technologies.

The presence of top Korean companies and the signing of several memoranda of understanding during the roundtable indicate that collaboration in energy will always remain strong while new sectors grow.

Korea’s Strategic Interest in UAE Energy

The UAE is crucial for Korea’s long-term energy security strategy, as Korea imports most of its energy. Hence, CEPA improves market access and streamlines investment opportunities for Korean companies in the UAE.

These investments may include:

• Petrochemical expansion
• Large-scale refining projects
• LNG and hydrogen infrastructure
• Advanced nuclear partnerships

Through the development of these projects, one would expect implementation on the ground to create direct effects on the global oil trade in UAE and the global position of the UAE as an energy supplier and innovator.

Challenges Ahead in a Rapidly Evolving Energy Landscape

While CEPA may allow for some hope, many challenges lie ahead. The renewable energy global agenda is impacting energy investments, while volatility in geopolitical situations affects global supply chains. Any large-scale energy project will demand much capital in return for the great risk and great amount of strategy alignment.

Both nations must counter:

• Fluctuating global oil prices
• Shifts in energy demand
• Rising competition among global oil producers
• Regulatory complexities surrounding international energy trade

Yet, the UAE’s adaptability and Korea’s technological strength create a partnership well-suited to overcome these hurdles.

A Transformative Agreement for the Future

The transformative nature of the UAE-Korea CEPA agreement is unmistakably engraved in the mind of the reader as he comes to the close of the final phase. As the non-oil trade, now valued at USD 6.6 billion, continues to grow in value, it is nothing but a tribute to the success of the diversification strategy undertaken by the UAE.

As cooperation deepens in energy cooperation, nuclear technology, and petroleum investment, it also means that the agreement would bear implications on the oil trade of the future in the UAE. With partnerships based on innovation, more investment, and expansion of the sector, the UAE is in line to strengthen its position in not just global commerce but also global energy leadership.

With the two nations genuinely on the same page concerning long-term economic priorities, CEPA expects to herald a new era of enhanced collaboration advancing trade, investment, and strategic partnership-generating opportunities across sectors while also intriguingly redefining the manner in which the world engages with the world oil trade in the UAE.