Miti: Malaysia open to strategic UAE cooperation in petroleum, gas and high-value sectors

KUALA LUMPUR, June 24 — Malaysia is always open to strengthening strategic cooperation with the United Arab Emirates (UAE) in various high-potential economic sectors including the petroleum and gas, petrochemical and logistics industries to drive trade, investment and the development of high-value industries.

The Ministry of Investment, Trade and Industry (MITI) said crude petroleum is Malaysia’s main and significant import product from the UAE with a value in 2025 of RM11.15 billion, which is 43 per cent of the total value of UAE imports to Malaysia, while downstream petroleum products are worth RM4.23 billion, which is 10.4 per cent of the total value of imports.

Crude petroleum exports from Malaysia to the UAE are worth RM729.82 million or 4.4 per cent of the value of the country’s total exports to the UAE, while downstream petroleum products are worth RM88.35 million or 0.5 per cent of the export value.

“Although in terms of bilateral trade, the petroleum sector recorded a negative balance in trade flows.

“However, the UAE is one of the sources of crude petroleum imports which is the feedstock for Malaysia’s downstream petroleum industry export supply chain to the world worth RM103.55 billion and is a sector that shows positive trade flows to the country globally at a value of RM6.8 billion,” said MITI.

The ministry said in a written reply posted on the parliament website yesterday to a question from Datuk Shahelmey Yahya (BN-Putatan) on whether Malaysia was considering strategic cooperation with the UAE in exploring the potential and opportunities of petroleum trade which could have positive implications for the country’s balance of payments through the empowerment of high-potential sectors following UAE’s withdrawal from the Organisation of the Petroleum Exporting Countries (OPEC).

As a country that was previously the third largest producer in OPEC, the UAE’s decision to withdraw from OPEC effective May 1, 2026 opens up space for cooperation between Malaysia and the UAE through strategic partnerships, said MITI.

This includes increasing cooperation between Malaysian companies in the energy transition, clean energy and renewable energy sectors with sovereign wealth funds from the UAE such as Abu Dhabi Investment Authority, and Mubadala driven by the post-OPEC transition.

In addition, MITI said the Malaysian Investment Development Authority (MIDA) is also acting proactively to attract post-OPEC UAE investment inflows, especially in the development and implementation of crude petroleum logistics and storage infrastructure, integrated refining complex projects and high-value petrochemical projects at the Pengerang Integrated Petroleum Complex with Malaysia becoming a regional distribution partner for the UAE’s petroleum industry and products. — Bernama