The UAE and Morocco have finalized the terms of a Comprehensive Economic Partnership Agreement (CEPA) that will launch a new chapter of mutually beneficial trade and investment ties between the two countries.
The conclusion of negotiations for the CEPA was confirmed by the signing of a joint statement by Dr. Thani bin Ahmed Al Zeyoudi, UAE minister of State for foreign trade, and Ryad Mezzour, minister of industry and trade of Morocco.
The UAE-Morocco CEPA will facilitate the free flow of goods and services by reducing or removing tariffs, eliminating unnecessary barriers to trade, improving market access for services, enhancing customs harmonization, and establishing flexible rules of origin for goods.
The CEPA will establish platforms for investment and private-sector collaboration in priority sectors like renewable energy, tourism, infrastructure, mining, food security, transport, logistics, and ICT.
Read more: UAE exports to Morocco reach around $1.32 billion in 2023
In 2023, the two nations had $1.3 billion in non-oil trade, a 30 percent increase from 2022 and 83 percent more than in 2019. The UAE is the largest Arab investor in Morocco, with over $15 billion invested in a variety of strategic projects.
Strengthening bilateral economic ties
Dr. Al Zeyoudi welcomed the latest development in the UAE’s foreign policy agenda. He highlighted the significance of the UAE-Morocco Comprehensive Economic Partnership Agreement (CEPA), describing it as a valuable addition to the UAE’s CEPA program.
He noted that the UAE and Morocco already share strong bilateral economic ties, and this new agreement will enable the two nations to further strengthen areas of mutual benefit. He specifically mentioned key sectors such as tourism, energy, manufacturing, and agriculture, where the agreement is expected to generate long-term prosperity for the people of both countries.
Furthermore, Dr. Al Zeyoudi expressed optimism about working in unison with Morocco, one of the largest and most competitive economies in Africa, to create new opportunities for the private sectors of both nations.
Expanding trade and investment opportunities
For his part, Mezzour noted that this agreement is part of the implementation of the Declaration signed by King Mohammed VI of Morocco and President Sheikh Mohamed bin Zayed Al Nahyan of the UAE on December 4, 2023 in Abu Dhabi, which aims to establish an innovative, renewed, and solid partnership between the two countries.
According to Mezzour, the agreement strengthens the legal framework between Morocco and the UAE, and aims to support the development of trade and investment by opening new opportunities to upgrade the level of joint cooperation in economic and commercial fields.
Morocco’s economic profile
Additionally, Morocco is the sixth largest economy in Africa. In 2023, its gross domestic product (GDP) was $152.4 billion and is projected to grow by an additional 3.5 percent in 2024. While agriculture remains the largest employer, the services sector is the largest contributor to GDP, accounting for 54 percent of economic output. The industrial sector contributes 23 percent of GDP.
UAE’s CEPA program driving non-oil trade growth
The UAE’s CEPA program aims to increase the country’s non-oil foreign trade to AED4 trillion by expanding partnerships with strategically important markets worldwide. In 2023, the UAE’s non-oil trade in goods reached a record high of $710 billion, a 12.6 percent increase from 2022 and 34.7 percent higher than 2021. Morocco is the latest African nation to conclude CEPA terms with the UAE, following Mauritius, Kenya, and Congo-Brazzaville.
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