The United Arab Emirates and Mauritius seal a promising economic partnership

The signature of a Comprehensive Economic Partnership Agreement (CEPA) marks a new milestone in economic relations between the United Arab Emirates and Mauritius. Indeed, the two countries are looking to strengthen their trade ties and boost their respective economic growth. StraFin, an international and cross-sectoral provider of corporate, trust, and fund administration services, gives you an insight into this agreement, the first of its kind between the UAE and an African country, marking a significant milestone in the UAE’s strategy to diversify its economic partnerships globally.

What does this agreement entail?

This CEPA, whose negotiations were finalized last December, encompasses an almost total elimination of customs duties on trade between the two countries. Thus, Mauritian companies will be able to more easily access the dynamic and open Emirati market, while the UAE will be able to export its products to Mauritius more easily and invest more there.

The principal objectives of this agreement

• Boost economic growth: Both countries hope that this CEPA will promote trade and investments, contributing to growth in their respective GDPs.
• Create jobs: This agreement is expected to help create new jobs in both countries by removing trade barriers, particularly in the production, trade, and services sectors.
• Economic diversification: The UAE seeks to diversify its economy, making it less dependent on hydrocarbons, while Mauritius aims to develop new sectors of activity. This agreement should aid these goals.
• Strengthen bilateral relations: Beyond economic aspects, this CEPA aims to enhance the ties between the two countries, both politically and culturally.

Key sectors involved

Several key sectors are likely to benefit from this agreement, including:

• Energy: Rich in hydrocarbons, the UAE could provide Mauritius with energy at competitive prices, while the latter could export products from its renewable energies to the Emirates.
• Agriculture: The two countries could develop partnerships in the field of agriculture, exchanging expertise and promoting the export of agricultural products.
• Tourism: Tourism is a key sector for both countries. This agreement could strengthen tourism cooperation by facilitating travel and developing new tourist products.
• Services: Financial services, information and communication technologies, and professional services are other sectors that could benefit from this agreement.

A stepping stone for new collaborations

This CEPA opens new perspectives for cooperation between the United Arab Emirates and Mauritius. It could serve as a model for other similar agreements with other African countries, considering that the United Arab Emirates intends to sign 26 comprehensive economic partnership agreements by 2031. These agreements are part of a broader strategy to reinforce the UAE’s position as a regional and global commercial hub.

For Mauritius, this agreement represents an opportunity to diversify its trading partners and attract foreign investment in new sectors. The island boasts a favorable business environment and a skilled workforce, making it an attractive destination for foreign investors.

How can foreigners looking to invest in Mauritius benefit from this agreement?

The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Mauritius presents a significant interest for foreign investors looking to establish their businesses in Mauritius in the following ways:

Facilitating trade and investments

• Elimination of customs duties: Removing customs barriers makes trade smoother and less costly, particularly attractive for companies wishing to export their products to the UAE or import raw materials from this market.
• Access to a broader market: The UAE represents a significant and dynamic market. By investing in Mauritius, companies can benefit from this privileged access to develop their activities in the Gulf region.
• Improved business climate: This agreement enhances Mauritius’s attractiveness as an investment destination, reflecting the country’s economic openness and business-friendliness.

New investment opportunities

• Promising sectors: The agreement opens new prospects in key sectors such as energy, agriculture, tourism, and services. Investors can diversify their portfolios and seize new growth opportunities.
• Strategic partnerships: Mauritian and Emirati companies can develop strategic partnerships to carry out large-scale projects, especially in the fields of infrastructure, information technology, and finance.

Strengthening economic stability

• Economic growth: The agreement should contribute to sustained economic growth in Mauritius, enhancing the country’s stability and reducing risks for investors.
• Greater attractiveness: A dynamic and stable economy attracts more foreign investors, creating a virtuous circle.

Better access to the African market

• Regional platform: Mauritius can serve as a gateway to the African market, especially East Africa. Foreign investors can thus benefit from the island’s strategic geographic position to expand their activities on the continent.

Conclusion

The comprehensive economic partnership agreement between the United Arab Emirates and Mauritius marks a new step in their economic relations. You can seize this opportunity by contacting StraFin, a company specializing in onshore and offshore companies. Call us now to learn more about investment opportunities in Mauritius.

Article source:

UAE and Mauritius sign comprehensive economic partnership agreement – thenationalnews.com