2025 goal in focus: UAE set to expand Cepa programme for greater economic progress

In recent years, the UAE has transformed itself into a global hub for trade and commerce – complemented by its comprehensive economic partnership agreement (Cepa) programme, spearheaded by Dr Thani al-Zeyoudi, Minister of State for Foreign Trade.

The programme seeks to help the UAE foster international trade relationships, enhance economic progress and cement the country’s position in the global marketplace. This year, it is going to unlock more opportunities for businesses across the globe.

Dr Thani al-Zeyoudi has articulated the strategic importance of Cepas in promoting rules-based international trade, sustainable progress and economic inclusivity. The programme has been establishing partnerships across continents.

UAE exporters among the primary beneficiaries of Cepas

By leveraging Cepas, the UAE has enhanced its capabilities in clean energy, logistics, sustainable food productions and other sectors. Since the programme’s inception in September 2021, the country has signed 24 agreements globally.

In the first half of last year, the UAE’s foreign trade surpassed Dh1.395 trillion, reflecting a 11.2% increase compared to the same period in the year before. The UAE intends its Cepa programme to increase the non-oil foreign trade to Dh4 trillion by 2031.

UAE exporters are among the primary beneficiaries of comprehensive economic partnership agreements. They enjoy preferential tariff rates and enhanced market access. Certain products benefit from zero tariffs immediately upon the implementation of the deal.

Impactful Cepas signed since the programme’s inception

The UAE-India Cepa is one of the most impactful agreements signed in recent years by both countries. It has significantly enhanced trade by eliminating tariffs on more than 80% of products. It is also addressing technical barriers to trade.

Signed more than a couple of years ago, the UAE-Indonesia Cepa has enhanced market access for UAE products, addressing more than 90% of tariff lines. It also includes a 10% price preference for UAE businesses in certain tenders, promoting robust trade.

The UAE-Turkey Cepa is another important agreement signed under the programme. It has simplified customs procedures, removed technical barriers to trade, and enhanced bilateral investment. It encompasses 83% of tariff lines.