Strategic Alliance: UAE and Singapore Boost Trade and Investment

The United Arab Emirates (UAE) and Singapore are intensifying their economic collaboration in response to global supply chain disruptions, positioning themselves as strategic partners amid shifting trade dynamics.

Bilateral trade between the two nations has been steadily rising. In 2024, merchandise trade reached $18.67 billion, with non-oil trade accounting for more than a third of this total. UAE exports to Singapore were valued at approximately $3.34 billion, while imports from Singapore stood at about $5.4 billion, reflecting a robust and expanding economic relationship.

Cross-border investment is also gaining momentum. The UAE’s non-oil foreign trade increased by 24% in the first half of 2025, reaching Dh1.7 trillion ($462.8 billion). Singapore serves as a key hub for First Abu Dhabi Bank’s operations in Asia, enhancing connectivity between the Middle East and Asia. Over 600 Singapore-based firms now operate in the UAE across sectors including fintech, healthcare, education, and infrastructure.

In a strategic move to promote open markets and economic collaboration, Singapore, the UAE, and New Zealand launched the Future of Investment and Trade Partnership (FIT-P) in 2025. The partnership aims to strengthen supply chains, reduce non-tariff barriers, and enhance investment flows among small and medium-sized, trade-dependent nations.

Executives at First Abu Dhabi Bank highlighted that the bank handled over $80 billion in UAE–Asia investments last year, spanning sectors such as energy, artificial intelligence, and sustainable infrastructure. This underscores the deepening economic linkages between Asia and the Middle East, with both nations playing pivotal roles in shaping global trade.

The UAE and Singapore’s initiatives reflect a shared commitment to fostering economic resilience and collaboration amid evolving global supply chain challenges.