UAE signs first CEPA with arab nation (Jordan)
The United Arab Emirates (UAE) has signed its first Comprehensive Economic Partnership Agreement (CEPA) with an Arab nation, marking a significant milestone in its expanding trade strategy. The deal, forged with Jordan, aims to deepen non-oil trade and investment relations between the two countries, building on an already robust economic partnership.
The agreement was finalized during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s recent working visit to Jordan. Sheikh Mohamed described the CEPA as a natural extension of the strong strategic relationship between the UAE and Jordan, which has seen impressive growth in trade. Non-oil trade between the two nations reached over $4.2 billion in 2023, with the first half of 2024 seeing a 36.8% increase to $2.7 billion compared to the same period in 2023.
Jordan stands as the UAE's third-largest Arab trade partner outside the Gulf Cooperation Council (GCC) and benefits from being the top destination for Emirati investment. Mutual investments are estimated to be around $22.5 billion, reflecting the significance of this partnership. The new CEPA is expected to further bolster these ties by eliminating trade barriers and fostering opportunities across key sectors such as renewable energy, manufacturing, transport, and food processing.
Dr. Thani bin Ahmed Al Zeyoudi, UAE's Minister of State for Foreign Trade, emphasized that the CEPA will create additional growth opportunities for businesses, entrepreneurs, and startups, projecting that bilateral trade could surpass $8 billion by 2032.
This agreement is part of the UAE's broader CEPA program, a cornerstone of its economic diversification strategy. The Gulf state’s non-oil trade reached a record AED 1.4 trillion ($381 billion) in the first half of 2024, representing an 11.2% increase from the previous year. The UAE has been actively pursuing trade agreements with key markets, having recently signed CEPAs with countries including Serbia, Australia, New Zealand, and several others since 2021.
These efforts are part of a larger push to expand the UAE’s global trade network and strengthen its economic footprint in strategically important regions.
