Costa Rica, Chile, And Peru Strengthen Economic Ties With UAE Through New Comprehensive Economic Partnerships Enhancing Trade And Investment

Published on December 28, 2025

Costa Rica, Chile, and Peru are forging stronger economic ties with the UAE through new comprehensive economic partnerships, creating opportunities for enhanced trade and investment. This collaboration marks a significant milestone as these Latin American nations work closely with the UAE to boost their economies and foster growth in key sectors such as infrastructure, technology, and sustainable development. The partnerships aim to open new markets and create mutual benefits, positioning both regions for greater economic prosperity.

The UAE has long been a hub for global trade and investment, and in recent years, the country has been taking significant steps to expand its economic footprint by building strategic partnerships around the world. By engaging in deeper collaboration with diverse markets, the UAE is not only aiming to enhance its trade relations but also to diversify its economic base and secure a sustainable future. The UAE’s efforts are focused on developing long-term relationships with key emerging markets, with an increased emphasis on regions such as Latin America, where new opportunities for growth and cooperation are being actively explored.

As part of the UAE’s forward-thinking approach, several new Comprehensive Economic Partnership Agreements (CEPAs) have come into effect with Latin American countries in 2025. These agreements are designed to strengthen trade relations, support investment flows, and create an environment that fosters mutual growth between the UAE and its new partners. The aim is to capitalize on the economic potential of emerging Latin American markets, and these CEPAs serve as an important foundation for boosting bilateral trade and investment.

One of the most prominent agreements is the CEPA between the UAE and Costa Rica, which officially came into effect on April 1, 2025. This agreement represents a landmark moment in the UAE’s efforts to deepen its ties with Central America. The primary objective of the Costa Rica CEPA is to eliminate or reduce customs duties, thereby facilitating trade in goods and services. This will not only improve the ease of doing business between the two countries but also open up new avenues for investment, particularly for small and medium-sized enterprises (SMEs). By creating a more favorable environment for SMEs, both the UAE and Costa Rica aim to stimulate innovation, drive job creation, and promote long-term economic stability. The CEPA with Costa Rica is seen as a strategic move to promote sustainable trade, positioning both nations to benefit from expanded economic engagement.

Another significant development in the UAE’s economic expansion is the entry into force of the CEPA with Chile, which became effective in November 2025. This agreement, which was signed in July 2024, aims to increase trade and investment between the two countries in several key areas, with a particular focus on sectors like infrastructure, energy, logistics, food security, and technology. The agreement is part of a broader UAE strategy to reduce its reliance on oil and diversify its economic activities. By strengthening ties with Chile, the UAE is positioning itself as a key player in the development of Latin America’s infrastructure and energy sectors, while simultaneously gaining access to emerging opportunities in technology and logistics.

The CEPA with Chile is expected to significantly enhance non-oil trade between the two countries. Both nations are keen to expand their bilateral trade in goods and services, with an emphasis on increasing exports from each country. The agreement also seeks to attract investments in strategic sectors such as infrastructure, which will contribute to the long-term growth of both economies. The UAE’s focus on food security and logistics is particularly important, as Chile’s agricultural sector offers strong potential for collaboration with the UAE in ensuring the sustainable supply of food to meet growing demand. Furthermore, the technology sector offers immense opportunities for cooperation, as both nations look to foster innovation and digital transformation.

In addition to these two major agreements, the UAE is in the process of negotiating further economic deals with other Latin American countries. Notably, discussions are ongoing with the Republic of Peru, with the goal of finalizing a comprehensive economic partnership that will further strengthen ties between the UAE and South America. Peru, with its growing economy and expanding trade potential, offers promising opportunities for the UAE, particularly in sectors such as mining, agriculture, and renewable energy.

The UAE’s expanding network of economic partnerships is a key component of the country’s Vision 2030, which aims to diversify the nation’s economy and reduce its reliance on oil revenue. By deepening its trade and investment relationships with emerging markets, particularly in Latin America, the UAE is diversifying its sources of growth and creating a more resilient economy that can weather future global economic shifts.

Moreover, these CEPAs reflect the UAE’s broader strategy to position itself as a global leader in sustainable growth and innovation. The agreements with Costa Rica, Chile, and other Latin American countries align with the UAE’s long-term sustainability goals, fostering collaboration in key sectors such as clean energy, technology, and food security. By supporting sustainable trade and investment practices, the UAE is not only ensuring its own economic prosperity but also contributing to the development of a more sustainable global economy.

The UAE’s push into Latin America is also supported by its strong international business infrastructure and an open economy. The country’s strategic location as a gateway between East and West, coupled with its world-class logistics, transportation, and financial services sectors, makes it an ideal partner for Latin American countries looking to expand their global reach. The UAE’s robust trade and investment environment offers Latin American businesses a platform to access markets in the Middle East, Asia, and beyond.

Costa Rica, Chile, and Peru are deepening economic relations with the UAE through new comprehensive partnerships, aimed at boosting trade and investment in key sectors like infrastructure and technology, fostering mutual growth.

the UAE’s efforts to expand its economic partnerships with Latin American countries are a testament to its commitment to global economic growth and diversification. The recent CEPAs with Costa Rica and Chile are just the beginning of a larger strategy to enhance trade, investment, and cooperation with emerging markets worldwide. By strengthening ties with Latin America, the UAE is setting the stage for long-term success, opening up new avenues for growth, and ensuring a sustainable and prosperous future for both its economy and its global partners.