The UAE’s latest CEPA deal is with this Arab nation

Image credit: Emirates News Agency

The UAE and Jordan have signed a Comprehensive Economic Partnership Agreement (CEPA), the Gulf state’s first CEPA with an Arab nation, as the two countries seek to boost non-oil bilateral trade and investment ties.

The bilateral trade agreement was signed during the UAE President Sheikh Mohamed bin Zayed Al Nahyan’s working visit to Jordan. President Sheikh Mohamed said the trade agreement with Jordan is a natural progression of the strategic relations between the two countries.

The deal builds on robust UAE-Jordan economic ties, with non-oil trade reaching over $4.2bn in 2023. Non-oil trade between the two countries reached $2.7bn in H1 2024, a 36.8 per cent growth compared to the corresponding period a year ago.

Jordan is currently the UAE’s third-largest Arab trade partner outside of the GCC, while the Emirates is the Hashemite kingdom’s top foreign investor. Mutual investment between the two countries is estimated to be approximately $22.5bn.

The trade deal is expected to forge even closer ties by removing trade restrictions and non-tariff measures on commodities and services, fostering opportunities across multiple sectors, including renewable energy, manufacturing, transport, and food processing.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said the CEPA with Jordan offers further growth opportunities for businesses, young entrepreneurs, and startups. It will boost bilateral trade to exceed $8bn by 2032, he added.

The UAE’s CEPA programme and expanding foreign trade remain the cornerstone of the UAE’s economic growth strategy. The country’s non-oil trade reached a record Dhs1.4tn in H1 2024, an 11.2 per cent increase in foreign trade compared to the corresponding period a year ago.

Meanwhile, the Gulf state signed a CEPA agreement with Serbia on Saturday, which is expected to add $351m to the UAE’s GDP by 2032.

The UAE signed bilateral trade agreements with Australia and New Zealand in September. The country has initiated a raft of bilateral trade, investment, and cooperation deals since 2021 to bolster efforts to diversify income sources and economic sectors.

To date, it has ratified five CEPAs with India, Israel, Indonesia, Türkiye, Cambodia, and Georgia. The Gulf state is also in negotiations with more markets of strategic importance at the regional and global levels, including Congo-Brazzaville and Malaysia.

Read: UAE’s non-oil foreign trade tops Dhs1.4tn in H1 2024