The UAE and the European Union have agreed to commence negotiations on a Comprehensive Economic Partnership Agreement (CEPA), aiming to enhance bilateral trade and investment ties.
Announced following a phone call between UAE President Sheikh Mohamed bin Zayed Al Nahyan and European Commission President Ursula von der Leyen, the agreement seeks to deepen cooperation in sectors such as renewable energy, green hydrogen, and critical raw materials.
The CEPA is expected to reduce tariffs, improve market access, and foster opportunities in advanced manufacturing, healthcare, logistics, and artificial intelligence.
In 2024, non-oil trade between the UAE and the EU reached $67.6 billion, with the EU accounting for 8.3% of the UAE’s total non-oil trade.
This development follows the UAE’s strategy to diversify its economy through trade agreements. The country has already signed CEPAs with countries including India, Indonesia, Israel, and Turkey.
The UAE had previously advocated for bilateral trade discussions with the EU, separate from the Gulf Cooperation Council framework, due to stalled EU-GCC trade talks since 2008.
The initiation of CEPA negotiations comes amid global trade uncertainties, including recent US tariff policies, prompting nations to seek diversified economic partnerships.
