18 Dhu al-Qi'dah 1445 - 26 May 2024
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Eye of Riyadh
Business & Money | Thursday 18 April, 2024 10:10 am |

UAE, Costa Rica committed to developing resilient and sustainable economies based on innovation: Al Zeyoudi

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, stated that Costa Rica and the UAE share many areas of strategic cooperation, culminating in the signing of a Comprehensive Economic Partnership Agreement (CEPA).


This reflects their commitment to developing resilient, sustainable, and future-oriented economies relying on innovation, investment, and trade to drive sustainable development towards further progress, prosperity, and well-being.


In statements to the Emirates News Agency (WAM) on the sidelines of the CEPA signing in San Jose, Al Zeyoudi added, "Costa Rica is one of the most promising emerging economies in Central America, located at the crossroads of trade between the Americas. It presents a significant opportunity for cooperation in sectors such as logistics and transportation. Its committment to the green economy also offers opportunities for renewable energy and ecotourism projects benefiting the private sector in both countries."


Dr. Al Zeyoudi affirmed that the agreement will grant the UAE high access to the Costa Rican market, reaching 98% of tariff lines without customs duties or with reduced customs duties. This includes aluminium, polyethylene, heavy machinery, ceramics, glass, copper and its products, iron and steel and their products, cement, and others.


He highlighted that the agreement enhances UAE service providers' access to the Costa Rican market across various sectors, including business, communications, construction, engineering contracting, distribution, education, environment, financial services, health and social care, tourism, travel, entertainment, culture, sports, and transportation, among others.


Regarding the direct economic impact of the agreement, Dr. Al Zeyoudi explained that feasibility studies project the comprehensive economic partnership agreement will contribute US$46 million annually to the UAE's GDP by 2031 and US$44 million annually to Costa Rica's GDP.


He mentioned that the agreement will increase total UAE exports to Costa Rica by US$24 million annually and US$12 million for Costa Rican exports to the UAE market. This will increase total cumulative direct UAE exports by the end of 2031 to US$81 million, while their Costa Rican counterparts will reach US$134 million during the same period.


Dr. Al Zeyoudi noted that trade volume between the two countries over the past five years has amounted to about US$244.3 million, rising from US$34.2 million in 2019 to US$64.6 million in 2023, an increase of 88.9%. This reflects a shared desire to enhance trade and investment growth across various fields and sectors.


He mentioned that the CEPA between the UAE and Costa Rica falls within the framework of the economic partnership agreements programme and the country's foreign trade agenda where agreements have been signed since May 2022 with India, Israel, Indonesia, Türkiye, Cambodia, Georgia, and Costa Rica.


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