The UAE has signed 20 Comprehensive Economic Partnership Agreements, with six currently operational. The agreements aim to reduce tariffs and simplify trade, enhancing economic growth. The CEPAs are expected to contribute 2.6 percent to the UAE economy by 2030 and have already driven significant increases in trade. Future agreements aim to bolster relations with numerous countries, achieving ambitious trade targets.
The United Arab Emirates (UAE) has established a total of 20 Comprehensive Economic Partnership Agreements (CEPAs), marked by a recent deal with the Central African Republic. Of these agreements, six are currently operational, including those with India, Indonesia, Israel, Turkey, Cambodia, and Georgia, as reported by the Ministry of Economy. These agreements are already generating notable economic benefits for the UAE.
The remaining 14 CEPAs, signed with countries such as Jordan, Australia, South Korea, Malaysia, and Vietnam, are pending ratification. The UAE aims to enhance global trade relations and intends to secure a total of 26 CEPAs to attract further investments and diversify its economic portfolio. The expected economic contribution from these trade agreements is projected to add approximately 2.6 percent to the UAE’s economy by 2030.
Since their inception, the CEPAs have successfully reduced tariffs and simplified trade procedures, demonstrating efficacy in augmenting UAE trade with its partners. In 2024, the UAE’s non-oil foreign trade reached a record high of Dh3 trillion ($816.7 billion), reflecting a growth of 14.6 percent year-over-year, supporting ongoing economic diversification efforts.
The contributions from these agreements have resulted in an increase of Dh135 billion in non-oil trade with partner nations, a 42 percent rise compared to the previous year. Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, emphasized that the UAE aims to achieve Dh4 trillion in annual foreign trade by 2031 and has already reached 75 percent of this target by the end of 2024.
The first CEPA signed by the UAE was with India in February 2022, which took effect in May of the same year. This agreement led to a surge in bilateral non-oil trade to $50.5 billion in the subsequent year. Other countries like Israel, Indonesia, and Turkey followed suit, with specific trade targets set to enhance economic collaboration and expand market access between the nations involved.
In conclusion, the UAE’s proactive approach in establishing 20 Comprehensive Economic Partnership Agreements reflects its commitment to economic diversification and global trade enhancement. These agreements are not merely strategic accords but have already started to yield tangible benefits, fostering growth in non-oil sectors and positioning the UAE as a key player in the international trade landscape. Through continuous expansion of its CEPA network, the UAE aims to strengthen its economy and secure greater investment opportunities.
Original Source: www.thenationalnews.com
