The UAE has signed Comprehensive Economic Partnership Agreements with 20 countries, including recent ones with the Central African Republic, India, and Israel. Six agreements are operational, while 14 are pending ratification. These partnerships aim to diversify the economy, enhance trade, and contribute significantly to economic growth by 2030, with ambitious targets set for non-oil trade advancements.
The United Arab Emirates (UAE) has established Comprehensive Economic Partnership Agreements (CEPA) with 20 nations, following a recent agreement with the Central African Republic. Currently, six of these agreements, including those with India, Indonesia, Israel, Turkey, Cambodia, and Georgia, are actively operational. These partnerships have begun to yield significant benefits for the UAE economy.
The UAE’s endeavor to enhance international trade involves ratifying agreements with 14 additional countries such as Jordan, Australia, and South Korea. The goal is to finalize a total of 26 CEPA agreements, aiming to attract investments and diversify the economy. CEPA agreements are projected to add approximately 2.6% to the UAE’s economic growth by 2030 by reducing tariffs and streamlining trade procedures.
In 2024, the UAE witnessed its non-oil foreign trade reach a record Dhs3 trillion ($816.7 billion), marking a 14.6% increase from the previous year. The signed CEPA agreements have collectively contributed Dhs135 billion to non-oil trade, a 42% increase compared to previous figures. Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, emphasized the UAE’s ambition to achieve Dhs4 trillion in annual foreign trade by 2031, indicating that current progress may lead to meeting this goal ahead of schedule.
The UAE’s initial CEPA was signed with India in February 2022, yielding a 5.8% annual increase in bilateral non-oil trade over the following year. Subsequent agreements with Israel, Indonesia, and Turkey have set ambitious trade targets. The agreement with Israel, effective since April 1, 2023, aims to boost trade to $10 billion by 2030, while the deal with Indonesia anticipates a trade volume of $10 billion by 2027.
Furthermore, agreements with Turkey and Cambodia outline substantial trade objectives, including $40 billion by 2028 and $1 billion by 2025 or 2027, respectively. The partnership with Georgia, which came into effect in June 2023, is expected to more than triple the value of non-oil trade between the two nations, significantly impacting their respective GDPs by 2031.
The UAE’s Comprehensive Economic Partnership Agreements (CEPA) are strategically designed to enhance international trade and economic development. These agreements not only facilitate market access and simplify trade processes but are also pivotal in diversifying the UAE’s economy. With ambitious trade targets set for the coming years, the UAE is well-positioned to achieve significant growth through these partnerships, further solidifying its role in global trade.
Original Source: www.thenationalnews.com
