Cambodia Looks To Broaden Trading Partnerships - Establishes First UAE Commercial Centre
Cambodia has opened its first private commercial centre in Abu Dhabi, the capital of the United Arab Emirates, and participated in the 2024 Cambodia-UAE Business and Investment Forum. Both have the intention of promoting products and bilateral trade, according to the Cambodian Ministry of Commerce.
This comes after Cambodia and the United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) came into effect in Q1 2024.
Cambodia Commercial Centre - Abu Dhabi
Tekreth Kamrang, secretary of state of the commerce ministry, presided over the inauguration ceremony of the Cambodia Private Commercial Center in Abu Dhabi on 25th February 2024 which was also attended by UAE officials and representatives of Oneroad Group, which exported the first batch of Cambodian milled rice to the UAE in 2024. The value of the first order of 60,000 tonnes of rice was worth USD $54 million from the UAE.
Kamrang said, “The Cambodia Private Commercial Center in Abu Dhabi was established to promote and export Cambodian products to international markets. It is also to disseminate documents related to Cambodia's trade, economy, investment, culture, and tourism to traders, investors, and international tourists, especially from the UAE.”
The aforementioned CEPA guarantees improved access for UAE products to the Cambodian market and covers 92% of customs tariff lines and over 93% of the value of non-oil trade.
Cambodia-UAE Business and Investment Forum (2024)
On the 27th of February, the Cambodia-United Arab Emirates (UAE) Business Forum was also held in Abu Dhabi to further showcase potential investment opportunities.
The third such forum was held under the presidency of Her Excellency Cham Nimul, Minister of Commerce of Cambodia, and Ahmed bin Ali Al Sayegh, UAE’s Minister of State of Foreign Affairs. There were participants from both governments and members of the private sector from both countries.
H.E Nimul also met with His Excellency Dr. Thani Bin Al Zeyoudi, Minister of State for Foreign Trade of the UAE in a busy week that encompasses several meetings and the 13th WTO Ministerial Conference.
The Council for the Development of Cambodia (CDC) indicated earlier in February, that possibly 40 private companies were going to attend and it was hoped that several important agreements would be signed.
Representatives from the Cambodia Chamber of Commerce, the Cambodian Oknha Association, the Federation of Associations for Small and Medium Enterprises of Cambodia (FASMEC), the Business Council of the Ministry of Commerce, the Tourism Association, agro-industry, real estate, banking, and manufacturing were present. They presented their respective sectors and businesses at the Forum.
Based on images from the Cambodian Ministry of Commerce's social media pages, an MoU was signed between 8S Agro-Industry Co., Ltd and an incense and perfume company from the UAE but no further details were announced.
Soun Sophal, Deputy Secretary General of CDC’s Cambodian Investment Board, said; “The forum can promote and attract investment and trade to grab the benefits of the Comprehensive Economic Partnership Agreement between the Kingdom of Cambodia and the UAE."
Investment Facilitation for Development (IFD) Agreement
The Investment Facilitation for Development (IFD) Agreement is a global agreement that aims to improve the investment climate and promote international cooperation. The agreement was launched in 2017 by a group of developing and least-developed WTO members and Suon Sophal and Minister of Commerce Cham Nimul participated in the ministerial conference to finalise the agreement in meetings held in the UAE this week.
H.E Nimul said from attending the 13th WTO Ministerial Conference in Abu Dhabi, “This important agreement, stemming from Cambodia’s ambitious role as a founding member, is intended to enhance the international investment environment. It aligns with the spirit of Cambodia’s domestic investment law."
The Cambodian Minister of Commerce of Cambodia also met with representatives His Excellency Mohamed Warsama Dirieh, Djibouti's Minister of Commerce and Tourism and Coordinator of LDC Group in the WTO, His Excellency Abdou Karim Fofana, Minister of Commerce, Consumer Affairs, and Small and Medium Enterprises of Senegal.
UAE And Cambodia Trade
According to the commerce ministry, non-oil trade between Cambodia and the UAE reached USD $151 million in 2021. This was valued at USD $192 million in H1 2023, and the CEPA aims to boost trade between the two countries to $1 billion.
Key items in bilateral trade between Cambodia and the UAE include clothing, footwear, bicycles, travel goods, tobacco, milled rice, electrical appliances, vehicle components, asphalt, tuber sugars, animal feed, plastics, vehicles and paper.
There is currently minimal direct tourism between the UAE and Cambodia and no current direct flights. Pre-COVID, Emirates had flights operating between Phnom Penh and Dubai.
Cambodia Seeking Further Ties With Qatar
In Q4 2023, Qatar Airways started offering direct flights to the Cambodian capital again – the only direct flights to the Gulf region from the Kingdom.
In February 2024, Cambodia and Qatar also pledged to boost trade and investment, particularly in the agricultural sector as the Kingdom looks to broaden its trading partners globally and in the Gulf region.
According to the Ministry of Commerce, trade between Qatar and Cambodia was valued at just over USD $86 million in 2023.