SINGAPORE: Singapore and the United Arab Emirates intend to launch negotiations on a Comprehensive Economic Partnership Agreement, Singapore's Ministry of Foreign Affairs (MFA) said in a statement on Wednesday (Oct 21).
The agreement will deepen economic integration, facilitate trade and investment flows, and create opportunities for businesses in both countries, the MFA said.
The announcement was made by Prime Minister Lawrence Wong and UAE President Sheikh Mohamed Zayed Al Nahyan during an official visit by Mr Wong to the Middle East, including a stop in Qatar.
Mr Wong met with Sheikh Mohamed in Abu Dhabi, where the two leaders reaffirmed the warm and longstanding relations between Singapore and the UAE.
They also witnessed the exchange of three Memorandums of Understanding in energy cooperation, water cooperation and disease vector control, and welcomed the establishment of a new joint energy task force between both countries.
The task force will be able to identify opportunities across the energy value chain, from trading to infrastructure and downstream activities. Both sides also welcomed ongoing cooperation in nuclear energy, involving the Emirates Nuclear Energy Company (ENEC).
Mr Wong also met the Crown Prince of Abu Dhabi Sheikh Khaled Mohamed Zayed Al Nahyan during his visit. Both leaders welcomed the strong economic and commercial ties between their countries and discussed opportunities to deepen cooperation in areas of shared priorities.
"The UAE is Singapore’s largest trading partner in the Middle East. Our economic ties are strong, and we see good potential to deepen cooperation in areas such as AI, digitalisation, energy, defence and space," Mr Wong said in a Facebook post on Wednesday.
To take the economic partnership further, discussions on the Comprehensive Economic Partnership Agreement are starting, he said.
Against the backdrop of an increasingly uncertain global environment, Mr Wong and Sheikh Mohamed underscored the importance of trusted partnerships and strengthening economic and security resilience.
Mr Wong reaffirmed Singapore's solidarity with the UAE and expressed confidence in the country's resilience and long-term economic prospects.
"This has been a difficult period for the UAE and the wider Middle East. Through these challenging times, Singapore stands with the UAE as a trusted partner and friend," he wrote on Facebook, adding that he was glad to meet the UAE leader in person after speaking with him on the phone soon after the regional conflict broke out in March.
Mr Wong said they exchanged views on regional developments and the importance of restoring peace and stability. They also discussed how to strengthen ties between the Association of Southeast Asian Nations (ASEAN) and the Gulf Cooperation Council (GCC).
Singapore will chair ASEAN in 2027, where both nations hope to advance talks toward an ASEAN–GCC Free Trade Agreement, Singapore and UAE said in a joint statement.
Singapore and the UAE commemorated 40 years of diplomatic relations last year, and total non-oil bilateral trade reached around US$6.5 billion last year, up 25 per cent from the year before.
In a joint statement, the two countries said they agreed to work towards further expanding trade and investment ties, and welcomed Singapore state investor Temasek's announcement that it would deepen its presence in the UAE by opening an office in Abu Dhabi.
Temasek announced last month that it plans to open offices in Riyadh and Abu Dhabi in the first half of next year, subject to approvals. That would bring Temasek's global network to 15 offices in 11 countries.
Towards the end of his five-day visit to the region, Mr Wong will be visiting Dubai to meet UAE's Deputy Prime Minister Sheikh Maktoum Mohamed Rashid Al Maktoum, who is also Finance Minister and Deputy Ruler of Dubai.
He will also attend a reception for overseas Singaporeans. More than 4,000 Singaporeans live in the UAE, the biggest such community in the region.
"Both sides welcomed the deepening of cultural and people-to-people ties between Singapore and the UAE, which form an important foundation of the bilateral relationship," the joint statement said.
Mr Wong will return to Singapore on Thursday.