What are the main benefits of UAE’s comprehensive economic partnership agreements ?
The UAE has comprehensive economic partnership agreements with countries around the world.
Each of these agreements provides mutually beneficial terms and opportunities to expand trade between countries and cooperation in various future economic sectors.
These agreements have established the UAE’s active presence on the international stage.
Especially as these agreements span across different continents of the world, making the country a gateway to the new global economy.
The benefits of UAE’s comprehensive economic partnership agreements include the below:
- Eliminating or reducing customs duties and tariffs
- Removing technical barriers to trade
- Improving the ability of UAE exporters to access markets
- Accelerating investment in priority sectors
- Supporting the UAE’s vision to double non-oil exports to reach AED 4 trillion by 2031
24 Comprehensive Economic Partnership Agreements Signed by the UAE
Since September 2021, the UAE has completed 24 comprehensive economic partnership agreements with countries and international blocs of strategic importance.
These countries have promising growth economies and are home to around 2.5 billion people, a quarter of the world’s population.
Out of the 24 agreements, 6 have already come into force with India, Israel, Turkey, Indonesia, Cambodia, and Georgia.
While 9 agreements have been officially signed with Costa Rica, Colombia, South Korea, Mauritius, Chile, Serbia, Jordan, Vietnam, and Australia.
Nine other agreements have successfully completed talks and reached their final terms, paving the way for official signing at later dates.
These agreements are with the Eurasian Economic Union (including Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia).
As well as Ukraine, Congo-Brazzaville, Kenya, Morocco, Malaysia, and New Zealand.
In addition to trade in services and investment agreements with Armenia and Belarus separately.
What is the First Comprehensive Economic Partnership Agreement for the UAE ?
The UAE initiated its first comprehensive economic partnership agreement with India due to the strategic relations and historical trade ties.
The talks were completed in a record time, possibly one of the fastest globally in reaching a similar agreement.
The agreement was officially signed in March 2022 and came into force on May 1, 2022.
Since then, the comprehensive economic partnership with India has had a significant impact on enhancing trade and investment flows.
Besides the agreement with India, 5 other comprehensive economic partnership agreements have come into force at later dates with Indonesia, Turkey, and Israel in 2023, and Cambodia and Georgia during 2024.
Future Plans:
There is no specific ceiling on the number of countries the UAE intends to conclude comprehensive economic partnership agreements with.
The main objective of the Comprehensive Economic Partnership Agreements program is to expand the UAE’s network of trade and investment partners worldwide.
This enhances the country’s position as a gateway to facilitate non-oil goods and services trade flows across the world.
And also as a global hub for business and investment by entering into partnerships with countries that share the same visions with the UAE, including:
- Rules-based free trade importance in achieving sustainable economic growth and comprehensive development.
- Foreign direct investment transformative power in driving qualitative developmental shifts that achieve mutual benefits for both parties.
Achieved Returns:
The Comprehensive Economic Partnership Agreements program aims to stimulate sustainable growth for the national economy.
It also aims to increase the contribution of non-oil sectors to the country’s GDP.
By implementing “We the UAE 2031” vision, which goals are as below:
- Making AED 4 trillion from non-oil foreign trade
- Increasing UAE exports of non-oil goods to AED 800 billion by 2031
- Doubling the size of the national economy
- Raising the country’s GDP from AED 1.49 trillion currently to AED 3 trillion by 2031
During 2024, the UAE economy has taken steady steps towards achieving the economic targets of the “We the Emirates 2031” vision, which aims to double the country’s gross domestic product to reach 3 trillion dirhams by the next decade. pic.twitter.com/wmy995SgWh
— UAE Voice (@uae_voiceeng) December 24, 2024
Huge Progress:
The Comprehensive Economic Partnership Agreements program has made significant progress since its implementation until now.
Because it enhanced the UAE’s non-oil foreign trade as well as UAE exports of goods and services.
Data on the UAE’s non-oil foreign trade at the end of 2023 showed that goods trade reached AED 2.6 trillion.
While services reached nearly AED 1 trillion, with record growth rates compared to previous years.
UAE non-oil goods exports continued to rise, recording AED 441 billion in 2023, an increase of 16.7% compared to 2022.
Thus, the Comprehensive Economic Partnership Agreements program has covered more than half the way towards achieving the foreign trade targets in “We the UAE 2031” vision.
With goods trade reaching AED 2.6 trillion by the end of 2023, eight years ahead of the target of AED 4 trillion.
Similarly, non-oil goods exports reached AED 441 billion by the end of 2023, covering more than half the distance towards the target of AED 800 billion.
