Malaysia is pressing ahead with plans to secure a free trade agreement with the UAE before the close of 2024, as the country simultaneously works toward a wider pact covering all six GCC member states.
Minister Confirms UAE Deal Is "Almost Ready"
In an interview with Malaysian national news agency BERNAMA, Minister of Investment, Trade, and Industry Tengku Zafrul Abdul Aziz confirmed that a bilateral Malaysia-UAE free trade agreement is nearly complete. Both countries are expected to sign the agreement before the end of 2024, which would mark a landmark milestone in Malaysia's trade strategy for the Gulf region.
Tengku Zafrul added that Malaysia is also actively negotiating a broader free trade agreement with the six GCC member states — the UAE, Saudi Arabia, Kuwait, Bahrain, Qatar, and Oman — with the aim of wrapping up a comprehensive deal.
Saudi Arabia Leads GCC-Side Negotiations
On the Gulf side, Saudi Arabia — the region's largest economy — is coordinating the GCC bloc's position in the FTA talks with Malaysia. The agreement is expected to deepen trade relations and open a new era of cooperation across multiple sectors, including electronics, palm oil, petroleum products, and processed food.
Malaysia currently holds seven bilateral FTAs and nine multilateral FTAs with global partners. A deal with the GCC would be Malaysia's first free trade agreement with an Arab regional bloc, reflecting the country's growing focus on Gulf markets.
Why This Agreement Matters
The GCC is a significant player in international trade, and an FTA would allow both parties to expand economic integration beyond existing bilateral channels. For Malaysia, the pact is expected to enhance trade liberalisation, attract Gulf investment, and deepen the country's integration with the dynamic economies of the Arabian Gulf.
For the UAE and other GCC members, the agreement opens access to Malaysia's competitive manufacturing and agri-food sectors, while strengthening South-South trade partnerships in the Indo-Pacific region.
