The UAE has signed Comprehensive Economic Partnership Agreements with 20 countries, six of which are currently operational. The agreements, aimed at reducing tariffs and enhancing trade efficiency, are expected to boost the economy significantly. The UAE is on track to diversify its economy through these partnerships, targeting a total of 26 agreements and achieving substantial trade increases by 2031.
The United Arab Emirates (UAE) has recently formalized Comprehensive Economic Partnership Agreements (CEPA) with a total of 20 countries, highlighted by the signing of a deal with the Central African Republic. Currently, six of these agreements—with India, Indonesia, Israel, Turkey, Cambodia, and Georgia—are operational, yielding notable benefits. The remaining 14 agreements are pending ratification, demonstrating the UAE’s commitment to enhancing global trade relations.
The UAE aspires to finalize a total of 26 CEPA agreements to bolster investment and diversify its economy further. It anticipates that these trade deals will contribute approximately 2.6 percent to the national economy by 2030. The CEPA agreements aim to facilitate trade by reducing tariffs and simplifying regulations, leading to significant increases in trade volumes with partner nations since their implementation in 2022.
In 2024, the UAE’s non-oil foreign trade reached a record Dh3 trillion (approximately $816.7 billion), marking a 14.6 percent year-on-year increase. This surge reflects the UAE’s ongoing efforts to diversify its economy and strengthen trade ties. The CEPA agreements alone have added Dh135 billion to non-oil trade with partner countries, representing a dramatic 42 percent increase from the previous year.
In establishing these agreements, the UAE achieved a goal of reaching Dh4 trillion in annual foreign trade by 2031, already reaching 75 percent of this target by 2024. The first CEPA was signed with India in February 2022, enhancing bilateral trade significantly, with subsequent agreements signed with Israel, Indonesia, and Turkey expected to further increase trade figures.
For instance, the UAE’s agreement with Israel is projected to raise bilateral non-oil trade to $10 billion by the decade’s end, a substantial increase from $1.3 billion in 2021. Similarly, the agreement with Indonesia will bolster trade to $10 billion by 2027, while the deal with Turkey aims for $40 billion by 2028. Cambodia’s CEPA, effective since January 2023, is set to generate new investment opportunities and support SMEs. The agreement with Georgia, initiated in 2023, anticipates substantial increases in both countries’ GDPs over the next several years.
In summary, the UAE’s strategic pursuit of Comprehensive Economic Partnership Agreements with 20 countries is yielding significant economic benefits. With ongoing efforts to finalize additional agreements, the UAE anticipates a notable expansion in trade and investment, aligning with its goal of achieving Dh4 trillion in annual foreign trade by 2031. These partnerships aim to simplify trade procedures and drive substantial growth in non-oil trade.
Original Source: www.thenationalnews.com
