Mauritius UAE Trade Deal to Boost Bilateral Commerce to $ 500 Million

Mauritius has formalised its status as the primary gateway between the Gulf and Africa following the entry into force of a historic Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates.

The deal, which became effective on 1 April 2025, is the first of its kind between the UAE and an African nation. It is projected to more than double non-oil bilateral trade from $210 to $500 million within five years.

Under the terms of the agreement, Mauritius will eliminate 99 % of tariffs on UAE imports, while the UAE is set to remove 97 % of its own, significantly easing market access for goods and services between the two hubs.

A Strategic Bridge

The agreement marks a milestone in Gulf-Africa relations, positioning the island nation as a regulated, stable platform for Gulf investors looking to access the African Continental Free Trade Area (AfCFTA)—a market encompassing over 1.3 billion people.

“Mauritius is consolidating its role as a leading international financial centre at the intersection of Africa, the Gulf, and Asia,” the report noted, highlighting the country’s transition from a luxury tourism destination to a sophisticated investment hub.

Vision 2050 and Economic Reform

The CEPA aligns with “Vision 2050,” a national roadmap aimed at elevating Mauritius into the bracket of advanced global economies by mid-century. The strategy prioritises high-tech and sustainable sectors, including:

• Artificial Intelligence and Fintech
• Medical Sciences and Life Sciences
• Renewable Energy (Blue and Green economies)

The financial services sector remains the economy’s cornerstone, contributing over 13 per cent of GDP. Supported by a legal system blending Common and Civil Law, the island’s regulatory credibility is increasingly attracting Gulf institutions for fund management and cross-border structuring.

Tourism and Diversification

Despite the rapid industrial shift, tourism continues to thrive. In 2025, the island welcomed 1.44 million visitors, generating over $2.1 billion in revenue. Current growth is focused on high-value eco-tourism and wellness segments.

Major institutional players are already moving to capitalise on the UAE-Mauritius corridor. In the banking sector, firms such as Mauritius Commercial Bank (MCB), HSBC, and Absa Mauritius are exploring new opportunities, alongside construction giants like Hyvec Group and luxury operators such as Maradiva Villas Resort & Spa.

With its strategic Indian Ocean location and bilingual workforce, Mauritius is no longer just a holiday retreat, but a vital link in the “growth story” connecting the Middle East to the African continent.

Source: MENAFN