UAE-Ecuador Agreement Boosts Latin American Access, Secures 30% Share of Ecuador's Trade with Arab and African Regions

Abu Dhabi | EcoPulse24

H.E. Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, stated that the comprehensive economic partnership agreement between the UAE and Ecuador marks a strategic step in expanding the UAE's commercial and investment footprint in Latin America, reinforcing its role as a global re-export hub and its integration with international markets.

He noted that bilateral trade is on a steady rise, reaching $373.6 million in non-oil trade in 2025 - a 3.2% increase from 2024 and over triple the 2019 level. The UAE is Ecuador's top trading partner in the Arab world and Africa, accounting for about 30% of Ecuador's total trade with these regions.

The agreement aims to eliminate or reduce tariffs on more than 96% of exchanged goods, facilitating smoother trade flows and improved market access, while supporting supply chain integration. Both countries also signed an investment protection agreement to create a stable, transparent investment environment, minimize risks, protect intellectual property rights, and provide clear dispute resolution frameworks, thus encouraging foreign direct investment.

On the investment front, the agreement creates a trade and investment corridor linking the UAE with Latin American markets, while enabling Ecuadorian companies to access Asian, Middle Eastern, and European markets through the UAE's advanced logistics infrastructure. Al Zeyoudi highlighted the opening of Ecuador's trade office in Dubai to support private sector collaboration and business connectivity.

Beneficiary sectors include renewable energy, agriculture, logistics, technology, food production, advanced technologies such as AI and advanced manufacturing, mining, education, tourism, and hospitality. Logistics is a key area of cooperation, expected to expand further under the new agreement.

Al Zeyoudi emphasized that Central and South America are strategic priorities for the UAE, given their geographic position, natural resources, and economic potential. The UAE has signed economic partnership agreements with Costa Rica, Colombia, and Chile, with the Chile agreement entering into force on November 24, 2025, and is exploring new agreements with Peru and the Mercosur bloc.

Ecuador, with a GDP of about $130 billion in 2025, has enhanced its investment appeal through new promotional policies, public-private partnership legislation, 100% foreign ownership allowances, and tax incentives. Free trade agreements with the US, Canada, China, and EFTA further position Ecuador as a key gateway to Latin American markets.

EcoPulse24 Analysis:
The agreement reflects the UAE's strategy of diversifying trade partnerships beyond traditional boundaries and building economic corridors connecting the Gulf to Latin America. The UAE's 30% share of Ecuador's trade with the Arab world and Africa highlights deepening logistical and commercial integration. Removing tariffs on most goods supports sustainable trade expansion. In a geopolitically volatile global environment, expanding economic partnership networks is a strategic tool for strengthening economic resilience and diversifying growth sources.