The UAE’s Comprehensive Economic Partnership Agreements: An Overview

The UAE has entered into 20 Comprehensive Economic Partnership Agreements with various countries, with six currently operational. These agreements aim to enhance trade and economic relations, potentially adding 2.6% to the economy by 2030. Sheikh Mohammed bin Rashid emphasized the success of these agreements in boosting non-oil trade and achieving strategic economic targets.

The United Arab Emirates (UAE) has recently entered into Comprehensive Economic Partnership Agreements (CEPAs) with 20 countries, following a new trade deal with the Central African Republic. Currently, six of these agreements with India, Indonesia, Israel, Turkey, Cambodia, and Georgia are in operation, generating significant trade benefits. The remaining 14 agreements are pending ratification, targeting countries such as Jordan, Australia, and South Korea, among others.

The UAE’s strategic goal is to establish 26 CEPAs to enhance global trade and attract further investment, potentially contributing an estimated 2.6 percent increase to the country’s economy by 2030. Notably, these agreements aim to simplify tariffs and regulations, thereby stimulating trade with partner nations. In 2024, the UAE’s non-oil foreign trade reached a record Dh3 trillion ($816.7 billion), marking a 14.6 percent year-on-year increase as the nation pursues economic diversification and strengthened global trading relationships.

Statements from Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, highlight the robust impact of the CEPAs, with a Dh135 billion rise in non-oil trade attributed to these agreements, representing a 42 percent increase compared to the previous year. He emphasized that the UAE aims to achieve Dh4 trillion in annual foreign trade by 2031, having already realized 75 percent of that target by the end of 2024.

The first CEPA was signed with India in February 2022, launching a trade partnership that has since seen bilateral non-oil trade grow to $50.5 billion within a year. Subsequent agreements with Israel, Indonesia, and Turkey have set ambitious trade targets. For instance, the UAE-Israel agreement aims for $10 billion in bilateral trade by 2030, while the UAE-Indonesia agreement anticipates similar growth to $10 billion by 2027.

Additionally, the Cambodia agreement targets $1 billion in trade by 2025 or 2027, and the UAE-Georgia CEPA aims to amplify non-oil trade value to $1.5 billion within five years, contributing significantly to both nations’ GDPs by 2031. Overall, these strategic agreements underscore the UAE’s commitment to expanding its economic horizons and fostering international trade.

In summary, the UAE’s establishment of Comprehensive Economic Partnership Agreements with 20 nations marks a significant step in enhancing its trade relations and overall economic growth. By actively pursuing additional agreements and achieving substantial targets in bilateral trade, the UAE is poised to further diversify its economy while maintaining its strategic focus on international cooperation and investment.

Original Source: www.thenationalnews.com