The European Union (EU) and the UAE have agreed to launch free trade talks, marking a positive step forward in EU–UAE relations.
UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Her Excellency Ursula von der Leyen, President of the European Commission, agreed to launch negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) during a phone call.
Sheikh Mohamed said the UAE’s decision to initiate negotiations on a CEPA with the EU reflects a shared determination to unlock the full potential of cooperation and advance economic, trade and investment ties in support of development aims.
Deal to increase trade and investment flows
Sheikh Mohamed said that, once concluded, the CEPA would create new avenues for cooperation between the UAE and EU, increase trade and investment flows and strengthen partnerships between the business communities of both sides. He emphasised that UAE-EU relations are founded on a common vision of stability, growth and prosperity.
“In that spirit, the upcoming negotiations will focus on liberalizing trade in goods, services, and investment, while deepening cooperation in strategic sectors such as renewable energy, green hydrogen and critical raw materials,” the EU said in a statement.
For her part, Her Excellency Ursula von der Leyen underscored the strength of ties between the UAE and EU, noting that the launch of CEPA negotiations marks a step towards a more dynamic and robust phase in their economic cooperation.
The announcement follows the signing of a Joint Statement of Intent by His Excellency Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and His Excellency Valdis Dombrovskis, EU Commissioner for Trade, to commence negotiations on the UAE-EU Comprehensive Economic Partnership Agreement.
UAE’s second-largest trading partner
The EU is the UAE’s second-largest trading partner, accounting for 8.3 percent of the UAE’s total non-oil trade. In 2024, non-oil trade between the UAE and EU reached $67.6 billion, representing 3.6 percent growth compared to the previous year.
The UAE is also the EU’s largest export destination and investment partner in the Middle East and North Africa. By reducing tariffs and unnecessary trade barriers and improving market access for goods and services, the CEPA is expected to foster opportunities in key sectors such as advanced manufacturing, healthcare, logistics and artificial intelligence, among others.
The UAE launched in September 2021 the CEPA program, which has so far resulted in 26 agreements with strategically significant countries and international blocs. The program is designed to expand the country’s commercial and investment partnerships worldwide, positioning the UAE as a key gateway for non-oil goods and services and a global hub for business and investment.
It also supports progress on the “We the UAE 2031” vision, which aims to raise the total value of the UAE’s non-oil foreign trade in goods to AED4 trillion ($1.09 trillion) and increase non-oil exports to AED800 billion ($217.81 billion) by 2031.
Notably, the UAE is in the final stages of CEPA negotiations with several major economies—most notably Japan—with talks expected to conclude before the end of 2025.
