The UAE’s 20 Comprehensive Economic Partnership Agreements Explained

The UAE has established Comprehensive Economic Partnership Agreements with 20 countries, enhancing trade relations and diversifying its economy. Six agreements are operational, while others await ratification. CEPAs are projected to contribute to economic growth and increase trade revenues significantly by 2030, with UAE aiming to reach Dh4 trillion in annual foreign trade by 2031.

The United Arab Emirates (UAE) has officially established Comprehensive Economic Partnership Agreements (CEPAs) with 20 countries, highlighted by a recent agreement with the Central African Republic. Six of these agreements, with countries such as India, Indonesia, Israel, Turkey, Cambodia, and Georgia, are currently operational, enhancing trade relations. The remaining agreements with 14 other nations await ratification, as the UAE seeks to broaden its economic footprint through a total of 26 CEPAs.

With these agreements, the UAE aims to attract further investment and diversify its economy, projecting an increase of approximately 2.6 percent to its economy by 2030. CEPAs are designed to lower tariffs and eliminate trade barriers by streamlining procedures, significantly boosting trade with partner nations since their introduction in 2022. In 2024, UAE’s non-oil foreign trade reached a record Dh3 trillion (approximately $816.7 billion), reflecting a 14.6 percent year-on-year growth.

The contribution of these CEPAs to the UAE’s trade totals Dh135 billion, which is a substantial 42 percent rise from the previous year. As noted by Sheikh Mohammed bin Rashid, Vice President of the UAE, the ambitious goal for annual foreign trade is set at Dh4 trillion by 2031, with three quarters of that target achieved by the end of 2024. The strategic focus is to enhance bilateral relations across numerous sectors.

The inaugural CEPA was signed with India in February 2022, resulting in a remarkable 5.8 percent annual increase in non-oil trade, reaching $50.5 billion within a year. Subsequent agreements with Israel, Indonesia, and Turkey aim to significantly elevate trade volumes, with specific targets set for the coming years. The UAE-Cambodia CEPA, effective from January 2023, is anticipated to expand market access for enterprises and bolster investment in small and medium enterprises.

The CEPA signed with Georgia is expected to extend the total value of non-oil trade to $1.5 billion over five years, alongside a forecasted increase of $3.9 billion in the UAE’s GDP and $291 million in Georgia’s GDP by 2031. As the UAE continues to foster robust trade relationships globally, these strategic agreements reinforce its economic ambitions and commitment to diversifying its revenue sources.

In summary, the UAE’s initiative to establish Comprehensive Economic Partnership Agreements is shaping its economic landscape by enhancing trade relations with numerous countries. The operational agreements are already driving non-oil trade growth, while ongoing negotiations with additional nations reflect the country’s commitment to economic diversification and investment attraction. With lofty targets in sight, the UAE is on a promising path toward achieving its ambitious trade objectives.

Original Source: www.thenationalnews.com