The UAE and EU have taken a significant step toward deeper cooperation with the conclusion of a new Strategic Partnership Arrangement (SPA), coinciding with rapidly advancing FTA negotiations under the Comprehensive Economic Partnership Agreement (CEPA).
The EU remains the UAE’s leading investment partner and second-largest trading partner globally and UAE Minister of State H.E. Lana Nusseibeh confirmed that CEPA talks are progressing swiftly.
Strategic Context: Growing Mediterranean Engagement
The agreement comes as the UAE intensifies cooperation with Mediterranean states, both EU and non-EU, through new frameworks on security, trade, and regional connectivity.
This aligns with the EU’s 2032 Strategy, which prioritises engagement with key regional partners. EU Commissioner for the Mediterranean Dubravka Šuica recently reaffirmed the UAE’s position as a “key partner in trade and investment.”
SPA as a Building Block of CEPA
The SPA functions as a targeted pillar within the broader CEPA negotiations, offering structure for cooperation in areas including:
- Digitalisation and data governance
- Artificial Intelligence regulation
- Renewable and clean energy development
H.E. Nusseibeh noted that these fields form the backbone of the emerging framework between the two sides. Sources close to MOFA say that negotiations are yet to get underway, but it is understood that this SPA is a natural step in CEPA’s steady progression.
Green Energy and Hydrogen Cooperation
The UAE is scaling its clean energy portfolio, particularly through Masdar’s expansion into green and low-carbon hydrogen production. Opportunities under the SPA include:
- Hydrogen certification and regulatory harmonisation
- Joint pilot projects on hydrogen supply chains
- Alignment of decarbonisation strategies ahead of COP31
These initiatives support both the EU’s energy transition goals and the UAE’s economic diversification. Germany, Italy, and the Netherlands have engaged with the UAE and the wider Maghrib on green hydrogen imports.
Digitalisation, AI, and Emerging Tech Regulation
Digital cooperation is expected to feature prominently in the upcoming CEPA chapters.
Key areas on the table could include:
- Cross-border data flows
- Cybersecurity frameworks
- AI governance and interoperability of standards
- Fintech and digital-asset regulation
The prospect of EU–UAE regulatory sandboxes offers a practical channel for testing digital-asset and blockchain regulations, an attractive avenue for the UAE as it seeks leadership in digital-economy governance amid perceptions of stricter EU regulation by international investors present at Abu Dhabi Finance Week.
Stay Up to Date with FinanceME!
“Water Runs Down the Hill”: ADFW CEOs Predict Unstoppable Blockchain Shift
Inside the 2025 Wealth Shift: New Billionaires, New Power Shifts
Dar Global Announces MAD Investment in Oman’s Coastal Districts
