UAE Signs 11th Economic Partnership Deal Amid Trade Expansion Efforts

The United Arab Emirates (UAE) continues to demonstrate its commitment to fostering global economic cooperation by finalizing its 11th Comprehensive Economic Partnership Agreement (Cepa) on Friday, marking another significant milestone in its pursuit of enhancing economic and trade relations with various countries. This latest development comes as the UAE intensifies efforts to bolster its position as a key player in the global economy and capitalize on opportunities for mutually beneficial collaboration with international partners.

The Arab world’s second-largest economy recently concluded a new Cepa with Colombia, following a similar agreement with Costa Rica on Thursday, according to the state news agency Wam. These agreements underscore the UAE’s proactive approach to expanding its network of economic partnerships and facilitating trade flows across diverse regions. To date, the UAE has successfully negotiated Cepas with India, Turkey, Israel, Indonesia, Cambodia, Georgia, as well as with Mauritius, Kenya, the Republic of Congo, Colombia, and Costa Rica. Each of these agreements represents a strategic step towards enhancing bilateral trade relations and fostering greater economic integration between the UAE and its partner countries.

Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, expressed confidence in the UAE’s ability to exceed its initial target of signing 26 Cepas, citing the country’s proactive engagement and the growing interest from other nations in establishing closer economic ties with the UAE. Cepas serve as instrumental tools for reducing tariffs and eliminating most trade barriers between countries, thereby facilitating increased investment and promoting economic growth. By fostering a conducive environment for trade and investment, these agreements enable businesses to explore new market opportunities and expand their presence in key regions.

President Sheikh Mohamed, who witnessed the signing of the UAE-Colombia Cepa alongside Colombian President Gustavo Petro, emphasized the significance of the agreement in strengthening economic cooperation between the two nations. He remarked, “The UAE-Colombia Cepa will usher in a promising era of enhanced economic ties between our nations, providing businesses with access to each other’s markets and regions.” The growing economic partnership between the UAE and Colombia is underscored by the significant increase in non-oil trade between the two countries, which surged by 43 per cent in 2023, reaching a record $53.1 million. This remarkable growth reflects the mutual commitment of both nations to deepening economic cooperation and exploring new avenues for trade expansion.

In addition to trade, the UAE and Colombia have signed cooperation agreements in various sectors, including renewable energy, environment, hydrogen, travel, free zones, and artificial intelligence. These agreements underscore the broader scope of collaboration between the two countries and pave the way for joint initiatives aimed at addressing common challenges and harnessing emerging opportunities. Mr. Petro expressed optimism about the future collaboration, stating, “UAE and Colombian ports and our peoples may embrace in friendship, solidarity and goodwill, which is what can actually save humanity.” This sentiment reflects the shared vision of both nations in leveraging their respective strengths to promote prosperity and well-being for their citizens.

The new Cepa between the UAE and Colombia comes at a pivotal time when the Emirates is actively pursuing ambitious goals to boost non-oil foreign trade to more than Dh4 trillion ($1 trillion) by 2031. Through a combination of new trade agreements and economic diversification initiatives, the UAE aims to position itself as a global hub for trade and investment, driving sustainable economic growth and prosperity. In 2023, the UAE’s non-oil foreign trade reached a record Dh3.5 trillion, up from Dh2.23 trillion in 2022, underscoring the resilience and dynamism of the country’s economy in the face of global challenges. Trade with its top 10 foreign partners grew by 26 per cent, reflecting the robustness of the UAE’s trade relations with key markets around the world.

Trade with Turkey, which accounted for 5.1 per cent of the UAE’s total trade, surged by 103.7 per cent year on year in 2023 following the implementation of the Cepa between the two countries. Additionally, trade with India, which signed a Cepa with the UAE in May 2022, increased by 3.9 per cent, representing more than 7.6 per cent of the total trade. The UAE’s improved ranking on Kearney’s 2024 Foreign Direct Investment Confidence Index and its expected economic growth of 4.2 per cent this year, according to the UAE Central Bank, further underline its commitment to economic diversification and growth. These developments position the UAE as an attractive destination for foreign investment and highlight its potential to drive regional and global economic prosperity.

The UAE attracted a record FDI of about $23 billion in 2022, with official figures for last year yet to be released. This influx of foreign investment underscores the confidence of investors in the UAE’s economic stability, favorable business environment, and strategic vision for the future. In conclusion, the signing of the 11th economic partnership deal between the UAE and Colombia represents a significant step forward in the UAE’s efforts to strengthen its global economic ties and promote sustainable growth. By fostering closer cooperation with international partners and pursuing an ambitious agenda for economic diversification, the UAE is poised to emerge as a leading hub for trade, investment, and innovation on the global stage.