The UAE and the European Union (EU) recently reviewed progress on the negotiations towards a free trade deal, also known as a Comprehensive Economic Partnership Agreement (CEPA), following the first round of discussions held in June and early July.
Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, met with Maroš Šefčovič, European Commissioner for Trade, in Brussels to discuss the strengthening of bilateral relations between the UAE and the EU.
UAE-EU non-oil trade hits $67 billion
As UAE-EU bilateral relations continue to strengthen, the CEPA is anticipated to play a vital role in enhancing trade ties, fostering investment opportunities and driving economic growth between the two parties. Both parties expressed optimism about the progress and potential benefits of the agreement.
“Our continued dialogue with the EU is essential in navigating the evolving global trade landscape,” Al Zeyoudi remarked. He added that the EU is a highly valued trade and investment partner for the UAE, with ties that continue to deepen across a range of sectors.
“This growth in trade is aligned with our mutual interests and highlights the importance of collaboration in areas such as energy transition, advanced technology and food security,” he added.
In 2024, non-oil trade between the UAE and the EU reached $67 billion, reflecting a 2.4 percent growth over the previous year. The EU continues to be a significant trade partner for the UAE, accounting for 8.3 percent of its total non-oil trade.
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UAE, EU seek stronger investments in high-growth sectors
The meeting served as a platform for both parties to discuss strategies for increasing investments in high-growth sectors, including renewable energy and advanced manufacturing. The UAE has already established significant partnerships with EU nations, reinforced by ongoing projects in solar energy and innovative technologies.
FDI flows between the UAE and the EU are strong and robust, with recent partnerships in data centers in Italy, solar plants in Spain, and neighborhood redevelopment in Budapest. A UAE-EU CEPA has the potential to unlock further opportunities, including a $50 billion AI data center deal with France and a $40 billion commitment in Italy’s energy and defense sectors.
The CEPA program is a key pillar of the UAE’s foreign trade agenda, reflecting the nation’s commitment to open, rules-based trade to drive economic growth and diversify its economy. By enhancing access to global markets and establishing stronger trade and investment flows with partners around the world, the CEPA program has contributed to a record non-oil trade of $816 billion in 2024, marking a 14.6 percent increase over 2023.
