The Gulf Cooperation Council (GCC) and Malaysia have restarted negotiating a long-delayed free trade agreement (FTA) to strengthen economic and trade relations.
“Malaysia considers the GCC to be one of its most valued trade partners in West Asia,” investment, trade and industry minister Tengku Zafrul Aziz said in a statement.
The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
Official talks on the FTA started in 2011.
The agreement is expected to cover many areas, including trade in goods and services, investment, trade facilitation, and economic cooperation, the statement said.
Total trade between Malaysia and the GCC reached $22.3 billion in 2024. Major exports include electrical and electronic products, jewellery, petroleum products, palm oil and palm oil-based products, as well as processed food.
The FTA aims to expand this further by reducing tariff and non-tariff barriers, promoting business mobility and enhancing regulatory cooperation.
This month Malaysian prime minister Anwar Ibrahim said that talks on closing a FTA with the Gulf Cooperation Council are continuing, 14 years after they first began.
In January the UAE and Malaysia signed a comprehensive economic partnership agreement (Cepa) that is hoped will produce a 60 percent increase in trade between the two countries over the next five years.
