The UAE and Malaysia are stepping up investment cooperation in the digital infrastructure sector.
The two sides have signed a memorandum of understanding (MoU), which has a special focus on developing data centres in Malaysia.
It also aims to encourage the exchange of knowledge and expertise and strengthen relationships between the public and private sectors of both countries.
The agreement was signed by Mohamed Hassan Al Suwaidi, UAE Minister of Investment, and Tengku Zafrul Aziz, Malaysia's Minister of Investment, Trade and Industry.
Data centres are essential for organisations to store crucial data and operate applications.
Malaysia currently runs more than 40 data centres, with the sector anticipated to witness an annual growth rate of nearly 16 per cent between 2022 and 2027, reaching $2.9 billion by the end of the five-year period.
The signing of the MoU is underpinned by strong trade relations between the UAE and Malaysia, with non-oil trade volume surpassing $2.22 billion in the first half of 2023.
The UAE is currently Malaysia’s second-largest trading partner in the Middle East, accounting for 32 per cent of its overall trade with Arab nations, while Malaysia holds the eighth position among non-Arab Asian countries for UAE exports and the 19th position in re-exports.