The United Arab Emirates (UAE) and the European Union (EU) are advancing efforts to deepen their robust trade relationship, currently valued at $67.6 billion, through the negotiation of a Comprehensive Economic Partnership Agreement (CEPA). This strategic initiative underscores the mutual ambition to expand economic cooperation and unlock new opportunities for bilateral growth.
During a recent high-level visit to the UAE, Maroš Šefčovič, the EU Commissioner for Trade and Economic Security, met with Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, to discuss the evolving CEPA framework. The visit also featured a pivotal investment roundtable with leading private sector stakeholders from both regions, focused on boosting trade, investment, and innovation.
A Milestone in Bilateral Trade
The UAE-EU CEPA is expected to be a transformative agreement, paving the way for reduced trade barriers, increased market access, and enhanced investment flows across key sectors including technology, renewable energy, and infrastructure. The EU is already a vital trading partner for the UAE, accounting for 8.3% of the country’s non-oil trade. In 2024, bilateral non-oil trade reached $67.6 billion, representing a 3.6% increase from the previous year.
Dr. Al Zeyoudi emphasized the strategic importance of the agreement:
“Our negotiations toward a UAE-EU Comprehensive Economic Partnership Agreement represent an extraordinary opportunity for us both to enhance trade and investment ties that will foster greater collaboration and mutual prosperity. By working together, we will strengthen our supply chains, drive innovation, and create jobs that benefit our communities and economies for years to come.”
A Reliable Trade Partnership
Šefčovič echoed these sentiments, highlighting the EU’s commitment to reliable and meaningful trade partnerships:
“Europe continues to be a reliable trading partner. A bilateral FTA would unlock tremendous business opportunities for European and Emirati businesses alike. Our goal is to reach a commercially meaningful deal that delivers long-term benefits and business certainty.”
He also noted the broader significance of the agreement for regional cooperation with GCC countries.
Investment and Innovation Opportunities
The investment roundtable showcased ongoing and prospective initiatives, including partnerships in data centres in Italy, solar energy projects in Spain, and urban redevelopment in Hungary. Two high-profile investment opportunities being explored include:
- A $50 billion AI data centre initiative in France
- A $40 billion investment plan in Italy’s energy and defence sectors
These highlight the UAE’s expanding investment footprint in Europe and signal the potential for the CEPA to catalyze further collaboration.
Driving Economic Diversification
The CEPA programme plays a central role in the UAE’s broader foreign trade agenda, supporting its long-term vision of economic diversification and sustainable growth. In 2024, the UAE achieved a record $816 billion in non-oil trade, a 14.6% increase from 2023, driven in part by strategic CEPA agreements with global partners.
As negotiations progress, the UAE-EU CEPA stands to become a landmark accord that not only enhances trade flows but also reaffirms the UAE’s position as a global hub for commerce, innovation, and investment.
