Indonesia and UAE Strengthen Economic Ties, Boosting Trade and Investment

The United Arab Emirates and Indonesia are experiencing a boost in their economic relationship, driven by the recently enacted Comprehensive Economic Partnership Agreement (CEPA). The Consul General of Indonesia in Dubai, Denny Lesmana, highlighted the increased opportunities for Indonesian companies to invest in and trade with the UAE.

Growing Trade and Investment

Bilateral trade between Indonesia and the UAE reached $6.41 billion in 2025, marking over a 60 per cent increase from $4 billion in 2021. This growth is largely attributed to the CEPA, which came into effect on 1 September 2023. The agreement facilitates trade by removing or reducing tariffs on various goods and includes provisions for digital trade, customs procedures, and the Islamic economy.

Dubai is recognised as a vital hub for trade, logistics, finance, and re-exports, while the Northern Emirates offer prospects in industrial, manufacturing, logistics, port, and tourism sectors. Key Indonesian exports to the UAE include jewellery, precious metals, and gemstones, valued at approximately $1.183 billion in 2025. Other significant export categories comprise CPO, vehicles, electrical equipment, iron and steel, footwear, inorganic chemicals, paper products, and textiles. Growing interest is also noted in foods and beverages, coffee, spices, and building materials.

Opportunities for Businesses and Talent

Indonesian firms are increasingly establishing operations in UAE free zones, attracted by benefits like full foreign ownership and simplified licensing. The Indonesian Consulate General in Dubai, along with the Indonesian Trade Promotion Center in Dubai and the Indonesia Investment Promotion Center in Abu Dhabi, actively supports businesses by facilitating B2B meetings, promoting Trade Expo Indonesia, and accompanying Emirati delegations to Indonesia.

Indonesia is also positioning itself as a source of skilled talent for the UAE's expanding economy, particularly in hospitality and technology. The Consulate General is receiving requests from Emirati companies seeking Indonesian professionals and is working to enhance cooperation through employer engagement, skills matching, and training partnerships, while ensuring worker welfare.