UAE taps into 10% of global economy with latest CEPA: Dr Al Zeyoudi

Abu Dhabi: The signing of its fourth CEPA with Turkey, alongside those signed with India, Indonesia and Israel, will give the UAE access to new markets reaching more than 2.2 billion people, including the Arab Free Trade Area Agreement Emirates, which was signed more than 15 years ago, said Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, on Friday.

Four bilateral agreements will help boost the country’s GDP by over 2.4 percent by 2031 and further fuel the growth of UAE exports by an additional US$120 billion over the next 10 years. This will create more economic and trade opportunities, explained Dr. Al Zeyoudi, noting that the UAE economy will be linked to more than 10 percent of the global economy after signing the deal with Turkey.

Bilateral trade between the United Arab Emirates and Turkey

The minister said that Turkey would be the UAE’s sixth largest trading partner in 2022, registering a 40 percent growth compared to 2021, with non-oil foreign trade reaching $18.9 billion last year.

dr Al Zeyoudi added that the UAE-Turkey CEPA will eliminate tariffs on 83 percent of goods in the two countries, as well as liberalize non-oil trade by 93 percent of goods. This will further help create a new market for the two countries in sectors such as food security, agriculture, fintech, telecoms, logistics, renewable energy and real estate.

With CEPA, the volume of trade exchanges between the two countries is expected to grow to over US$40 billion per year within five years and create over 25,000 jobs in the UAE by 2031, particularly in the skilled labor sector. Turkey is expected to grow by 20 percent in the next phase .

according to dr Al Zeyoudi is expected to ratify the CEPA UAE-Turkey before the end of the second quarter of 2023.

Commenting on the UAE’s future plans in the area of ​​comprehensive economic partnerships, Dr. Al Zeyoudi that the UAE is progressing faster and faster. “We are in the process of finalizing two new deals with Cambodia and Georgia and two deals with Kenya within the next 3 to 4 weeks, with 85 percent approval,” he said, adding that it is an important gateway to Africa.

He also hinted at an agreement with Colombia, stating that negotiations have been postponed until after the elections and will resume soon.

The minister added that the UAE intends to use CEPAs to expand its partnerships with ASEAN countries, with negotiations already underway with Thailand and Vietnam. There are also plans to expand in Africa and South America, which would have a positive impact on the UAE’s trade growth, he continued. The UAE is also working on comprehensive Economic Partnership Agreements with two economic blocs in the Eurasian region, with negotiations starting next week and due to be completed within 6 months, while CEPA negotiations with Ukraine will start in April.