The UAE and Cambodia have signed a bilateral trade agreement, the Emirates' fifth deal within a trading strategy implemented back in 2021. 

The trade strategy, referred to as Comprehensive Economic Partnership Agreements (CEPA), is a key part of the UAE's economic growth plans as it aims to reduce its reliance on fossil fuels. 

The agreement was signed on Thursday in Phnom Penh by Dr Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, and Pan Sorasak, Cambodia's Minister of Commerce, in the presence of Cambodia's Prime Minister Hun Sen, The National reports.

The aim of the agreement with Cambodia will lower or remove tariffs, "eliminating barriers to trade, and creating new avenues for strategic investment," said Dr Thani Al Zeyoudi.

The minister added that the CEPA is a "new milestone in our foreign trade agenda that strengthens our growing role in the east-west trade corridor.

"It will not only contribute to our goal of doubling non-oil foreign trade by 2031 but also expand our presence in the rapidly growing economies of South-East Asia, opening new doors for exporters to reach millions of consumers.

"Cambodia will also benefit from our global connectivity and ability to re-export goods to more than 400 cities around the world. We will continue to expand global trade to foster long-term, sustainable growth and economic diversification with all whom we do business with," Dr Thani Al Zeyoudi stated.

Last year, non-oil trade between the UAE and Cambodia hit $407 million, Reuters news agency reports, with this target set to exceed $1 billion within the next five years, the minister for foreign trade added.

The aim of the deal is to increase exports of fruits, meats, grains, clothing and leather goods, amongst other items, from Cambodia, as well as exports from the UAE of machinery, oil and lubricants. Both countries will also look into investment opportunities in infrastructure, travel, logistics and renewable energy, according to the UAE's Ministry of Economy.

Before the deal was signed with Cambodia, the UAE penned Comprehensive Economic Partnership Agreements with India, Indonesia, Israel and Turkey, with another ten others in the pipeline.