Dubai, UAE — Dubai Chambers and ProChile (Chilean Exports Promotion Bureau of Chile’s Ministry of Foreign Affairs) have signed a Memorandum of Understanding (MoU) to enhance trade and investment cooperation and economic partnerships.
Under the MoU, both parties will coordinate events aimed at strengthening ties between exporting companies from Dubai and Chile and supporting the expansion of these companies in both markets by creating promising business opportunities. Both parties will also develop joint initiatives to expand cooperation in the fields of trade, innovation, sustainability, and entrepreneurship.
Furthermore, the MoU will serve to enhance the diversification of the trade of goods and services to increase commercial exchange between Dubai and Chile. The agreement also allows economic data to be shared in order to assist companies from both sides to better understand the current conditions and future prospects of local markets in both countries.
The MoU was signed in the presence of Chile’s President Gabriel Boric Font during a business forum held at Dubai Chambers headquarters and attended by a high-level government and business delegation. The President of Chile was received by Sultan Ahmed bin Sulayem, Chairman of Dubai International Chamber.
The agreement was signed by Mohammad Ali Rashed Lootah, and Ignacio Fernández, Director-General of ProChile, in the presence of Sultan Ahmed bin Sulayem and Alberto van Klaveren, Minister of Foreign Affairs of the Republic of Chile.
During the event, Gabriel Boric Font highlighted the long-standing ties between the UAE and Chile and the significant progress these relations have made in recent years. He expressed his country’s commitment to further expand bilateral relations across various economic fields.
In his welcome address, Sultan Ahmed bin Sulayem said, “We are committed to providing all the support to Chilean companies to benefit from Dubai’s competitive advantages as a global trade and logistics hub. We are focused on highlighting the promising opportunities offered by Dubai to the business community in Chile, including the latest ‘Foodstuffs, Fruits and Vegetables Market’, the world’s largest logistics hub for the trade of foodstuffs, vegetables, and fruits, which represents a strategic gateway for Chilean food companies seeking to export their products to global markets via Dubai.”
He added, “Non-oil trade between Dubai and Chile reached approximately AED5.3 billion over the past five years. Cooperation with ProChile marks a significant milestone in fostering these bilateral economic relations and strengthening ties between the business communities in Dubai and Chile.”
Ignacio Fernández, Director-General of ProChile, said, “Dubai Chambers is a key ally for ProChile, as both institutions work to connect exporting companies and facilitate business and bilateral trade. We look forward to the opportunities that this Memorandum of Understanding opens for companies in both of our countries.”
Today’s MoU follows the signing of a Comprehensive Economic Partnership Agreement (Cepa) between the two countries on Monday in Abu Dhabi, coinciding with the official visit to the UAE of Gabriel Boric.
The agreement was signed by Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Alberto van Klaveren, Chile’s Minister of Foreign Affairs.
The Cepa will eliminate or reduce customs duties covering 99.5 per cent of the value of the UAE’s imports from Chile, opening market access to services exports, removing unnecessary barriers to trade, and facilitating investment and joint ventures.
The deal is projected to increase non-oil bilateral to $750 million by 2030, more than doubling the US$306 million shared in 2023. It is also set to boost the value of UAE exports by $247 million by 2030.
Chile is the fourth-largest economy in South America with a GDP in excess of $300 billion. It is also the world’s largest copper producer, the second largest lithium producer and boasts rich agriculture, fishery and forestry resources. The UAE is already an active investor in the country, with key investments in fruit production and export, real estate, and transport.
The UAE-Chile Cepa is the second deal the UAE has signed with a South American nation this year, following the signing of a Cepa with Colombia in April.
On Tuesday, Al Zeyoudi said the Cepa, which is the 11th agreement for the UAE under its agreement programme and which has been developed over the past three years, is expected to come into effect within six months.
In a statement to the Emirates News Agency (WAM) on the sidelines of a roundtable hosted by the ministry on Monday with a Chilean delegation, Al Zeyoudi said that the deal is expected to contribute an additional $73 million to the national economy by 2031 and will also have a significant impact on increasing the country’s exports to Chile.
Al Zeyoudi stated, “What sets this agreement apart is its high level of liberalisation, exceeding 99% for both parties. Liberalisation is particularly significant in the services sector, which is key to attracting investments to both countries. Additionally, for the first time, we have included a specialised chapter focused on empowering women in the economic and commercial sectors.”
He added that a comprehensive chapter on supply chains was included, highlighting their importance, especially given the current global crises and geopolitical situations.
Dr. Al Zeyoudi emphasised that the agreement builds on the direct interactions and communication between the Emirati and Chilean private sectors in areas of mutual interest, including minerals, renewable energy, infrastructure, hospitality, and lithium.
For his part, Alberto van Klaveren, Chilean Minister of Foreign Affairs, told WAM that the CEPA aims to boost trade between the two countries and create numerous opportunities for investors from both the UAE and Chile.
“We believe there is significant potential in our relationship with the UAE, and Chile offers many opportunities, particularly in areas like food and minerals, which are crucial to our economy,” he added.