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UAE and Paraguay Forge Stronger Ties for Sustainable Growth

UAE and Paraguay Forge Stronger Ties for Sustainable Growth
  • PublishedMay 27, 2025

The strategic alliance between the United Arab Emirates and the Republic of Paraguay took a significant leap forward as President His Highness Sheikh Mohamed bin Zayed Al Nahyan welcomed His Excellency Santiago Peña, President of Paraguay, during an official visit to Abu Dhabi. This high-level diplomatic engagement emphasized the growing importance of South-South cooperation and multilateralism, particularly in an increasingly interconnected global landscape. Held at Qasr Al Shati, the meeting between the two heads of state reflected both nations’ shared commitment to sustainable development, mutual prosperity, and proactive engagement on global issues such as climate action, economic resilience, food security, and peaceful cooperation. As both countries continue to seek diversified partnerships and long-term strategic value, the UAE-Paraguay relationship appears poised to enter a new chapter of bilateral growth and collaboration.

Leaders Emphasize Shared Vision for Sustainable Development

At the core of the meeting was a strong emphasis on shared development objectives and a collaborative vision for sustainability and prosperity. President Sheikh Mohamed bin Zayed and President Santiago Peña discussed the need to enhance bilateral ties in ways that serve not just the national interests of both states, but also contribute to global efforts in sustainable development. This forward-looking dialogue underscored mutual recognition of the importance of forming alliances that transcend traditional geographical boundaries.

The UAE has long prioritized economic diversification and strategic global partnerships as part of its national development agenda. Paraguay, with its rich agricultural resources and growing energy sector, represents a promising partner in this regard. President Peña’s visit came as part of a broader push to elevate Latin America’s diplomatic and economic presence in the Middle East, tapping into the UAE’s infrastructure, innovation, and renewable energy expertise.

Key Sectors Highlighted for Bilateral Cooperation

During the comprehensive discussions, both leaders identified a wide range of sectors ripe for collaboration. Particular focus was placed on trade and investment, renewable energy, food security, and climate action—sectors that are not only strategically vital but also aligned with the global Sustainable Development Goals (SDGs).

The UAE, as a regional hub for trade, finance, and logistics, offers significant opportunities for Paraguay to access wider markets across the Gulf Cooperation Council (GCC), Africa, and Asia. On the other hand, Paraguay’s vast natural resources, especially in agriculture and hydroelectric energy, make it an ideal partner for the UAE as it seeks to strengthen food and energy security through international cooperation.

Climate action formed a core component of the dialogue, with both sides expressing strong support for joint initiatives that align with the goals of the Paris Agreement and the outcomes of COP28, which was hosted by the UAE. Paraguay, known for its renewable hydropower capacity, can collaborate with the UAE on clean energy technology, carbon management, and climate resilience programs that benefit both regions.

Economic Diversification and Strategic Partnerships

President Sheikh Mohamed bin Zayed highlighted the UAE’s dedication to expanding its economic and development partnerships worldwide, especially with nations in Latin America. The UAE’s vision of economic diversification has seen it establish relations far beyond its immediate region, drawing new investments, knowledge exchange, and collaborative ventures with emerging economies.

This diversification strategy aligns with Paraguay’s aspirations to become a more integrated player in global trade and diplomacy. Through partnership with the UAE, Paraguay can access advanced technologies, investment capital, and market networks that enable faster infrastructure development and economic modernization. Furthermore, the UAE has proven its ability to act as a conduit for regional partnerships, which would be beneficial for Paraguay’s future outreach within the Middle East and North Africa.

The meeting also underlined the UAE’s commitment to creating platforms where both public and private sectors can jointly explore business opportunities. President Peña’s visit is expected to catalyze new memoranda of understanding, trade agreements, and bilateral investment treaties in the coming months.

Food Security and Agricultural Collaboration

Food security was among the key pillars of the bilateral discussions. Paraguay, as a major exporter of agricultural products, presents immense potential for the UAE, which relies heavily on food imports due to its desert climate. Strengthening agro-industrial cooperation would not only ensure a more resilient food supply chain for the UAE but also open up new markets for Paraguayan producers.

Discussions included the potential establishment of logistic corridors and specialized hubs that facilitate the export of meat, grains, and other agricultural goods from Paraguay to the UAE and beyond. These corridors would leverage the UAE’s advanced logistics infrastructure and Paraguay’s rich production capacity. In a world increasingly concerned about supply chain disruptions and global hunger, this partnership is expected to bring meaningful progress toward sustainable food systems.

The UAE has already invested in similar projects in other parts of the world, and the addition of Paraguay could further solidify its role as a leader in global food security policy and logistics planning.

Shared Commitment to Climate Action and Green Innovation

Climate action remains a major point of convergence between the UAE and Paraguay. The UAE, which hosted COP28, continues to champion clean energy initiatives, carbon neutrality strategies, and green innovation, both regionally and globally. Paraguay, a country with one of the highest percentages of renewable energy use globally, complements these goals with its massive hydroelectric potential.

President Peña expressed interest in deepening technological and policy exchange around renewable energy, especially in areas such as solar, wind, and hydropower integration. Given the UAE’s robust investment in clean energy companies like Masdar, future partnerships could involve joint ventures in renewable projects, green financing, and capacity-building programs.

Additionally, cooperation on climate-resilient agriculture and sustainable land management was discussed. Paraguay’s experience in balancing productivity with sustainability could be highly valuable for the UAE’s agricultural innovation zones and food security programs.

Regional Stability and Global Peace

While economic and environmental cooperation formed the backbone of the meeting, the leaders also took time to address pressing regional and global political issues. In particular, both sides stressed the importance of promoting peace and stability in the Middle East and globally. As crises continue to impact parts of the region, the UAE and Paraguay reaffirmed their support for diplomatic solutions, multilateralism, and respect for international law.

The conversation reflected a shared diplomatic philosophy rooted in non-intervention, dialogue, and constructive engagement. President Sheikh Mohamed reiterated the UAE’s dedication to being a bridge-builder in global affairs, emphasizing the need for inclusive peace efforts that prioritize humanitarian values and sustainable development over conflict.

President Peña acknowledged the UAE’s leadership in humanitarian initiatives and regional diplomacy, noting that Paraguay is eager to play a proactive role in supporting global stability through partnerships with responsible and visionary nations like the UAE.

Diplomatic Delegations and High-Level Attendance

The meeting at Qasr Al Shati was attended by several high-ranking Emirati and Paraguayan officials, further highlighting the significance of the diplomatic engagement. Among those present were H.H. Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Development and Fallen Heroes’ Affairs; H.H. Sheikh Hamdan bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Special Affairs; Sheikh Mohammed bin Hamad bin Tahnoon Al Nahyan, Advisor to the UAE President; and Ali bin Hammad Al Shamsi, Secretary-General of the Supreme Council for National Security.

Also in attendance were Reem bint Ebrahim Al Hashimy, Minister of State for International Cooperation; Abdullah bin Sultan bin Awad Al Nuaimi, Minister of Justice; Dr. Ahmed Mubarak Al Mazrouei, Chairman of the President’s Office for Strategic Affairs and Chairman of the Abu Dhabi Executive Office; Faisal Abdulaziz Mohammed Al Bannai, Advisor to the UAE President for Strategic Research and Advanced Technology Affairs; and Dr. Al Saghira Wabran Alahbabi, UAE Ambassador to Paraguay.

This high-level representation from both sides signals not only the symbolic importance of the visit but also the operational readiness of both governments to translate discussions into practical outcomes across various sectors.

Written By
Vaishali Mundra

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