Japan and the United Arab Emirates have finalized a comprehensive economic partnership agreement, the Japanese Foreign Ministry announced Thursday.
The deal will allow the UAE to remove tariffs on key Japanese vehicles within seven years of the pact taking effect.
The agreement marks Japan’s first economic partnership with a Middle East country and aims to tap into growing demand in the UAE’s expanding economy.
South Korea concluded a similar comprehensive economic partnership with the UAE earlier, which will eliminate vehicle tariffs within 10 years of its implementation, though the pact has not yet taken effect.
Japanese automakers currently dominate the UAE’s vehicle market, enjoying the largest share of sales.
South Korean manufacturers are seeking to increase their market presence to compete with Japanese brands.
Officials said the agreement is expected to strengthen trade ties and boost exports of Japanese vehicles to the UAE.
The ministry noted that the partnership will support Japanese industry while fostering closer economic relations in the Middle East.