The UAE has signed Comprehensive Economic Partnership Agreements with 20 countries, six of which are currently operational. These agreements aim to enhance trade by reducing tariffs and streamlining processes, contributing significantly to the UAE’s economy. The ongoing partnerships are projected to facilitate increased trade, investment, and GDP growth by 2031.
The United Arab Emirates (UAE) has officially entered into Comprehensive Economic Partnership Agreements (CEPAs) with 20 countries, following the recent agreement with the Central African Republic. Six agreements with India, Indonesia, Israel, Turkey, Cambodia, and Georgia are currently operational, providing tangible benefits to the UAE’s economy. Agreements with another 14 countries including Jordan, Australia, and Vietnam are pending ratification.
These CEPAs are part of the UAE’s strategy to expand trade and foster global relations, with an ambitious goal of signing 26 such agreements. They aim to reduce tariffs and simplify trade processes, projected to contribute approximately 2.6% to the UAE’s economic growth by 2030. Moreover, the UAE’s non-oil foreign trade reached a historic $816.7 billion in the first half of 2024, reflecting a year-on-year increase of 14.6%.
The agreements have resulted in a substantial contribution of Dh135 billion to the UAE’s non-oil trade, signifying a 42% rise from the previous year. In 2021, the UAE set a goal for annual foreign trade to reach Dh4 trillion by 2031, and the current trajectory suggests that this target may be surpassed ahead of schedule.
The first CEPA with India, signed in February 2022, led to a non-oil trade boom, reaching $50.5 billion within a year. Subsequent agreements with Israel and Turkey have similarly ambitious targets, with aims of increasing bilateral non-oil trade considerably over the next decade. For example, the agreement with Israel seeks to escalate trade to $10 billion by 2031, while the Indonesia deal anticipates $10 billion by 2027.
Additionally, the CEPAs with Cambodia and Georgia are expected to significantly enhance economic interaction and support for small enterprises. The UAE-Cambodia CEPA, effective from January 2023, aims to facilitate market access and elevate investment opportunities, while the recent agreement with Georgia intends to increase non-oil trade to $1.5 billion and significantly contribute to both nations’ GDP by 2031.
The UAE’s expansion of Comprehensive Economic Partnership Agreements reflects its strategic commitment to enhancing global trade relations and diversifying its economy. With six agreements currently in effect and plans for more, the UAE is projected to significantly boost its non-oil trade and achieve substantial economic growth. The establishment of these partnerships not only creates opportunities for increased trade but also supports small enterprises across partner nations.
Original Source: www.thenationalnews.com
