The United Arab Emirates has signed five new Comprehensive Economic Partnership Agreements (CEPAs) in the first quarter of 2025, strengthening its position as one of the most globally connected trade economies.
According to WAM, the UAE’s state news agency, the latest deals were signed with Malaysia, New Zealand, Kenya, Ukraine, and the Central African Republic, bringing the total number of CEPAs inked since 2021 to 26.
Launched in September 2021, the CEPA program is a cornerstone of the UAE’s trade diversification strategy. These bilateral free trade agreements reduce or eliminate tariffs, enhance market access, and stimulate investment flows.
Among the earlier signatories are India, Turkiye, Israel, Indonesia, Cambodia, and Georgia. A deal with Costa Rica will enter into force on April 1, bringing the number of operational agreements to seven. Fourteen more are in final ratification stages, while six have been finalized and await official signing.
Fast-Tracking Non-Oil Growth
The CEPA initiative directly supports the UAE’s target of raising non-oil foreign trade to AED 4 trillion ($1.09 trillion) and increasing non-oil exports to AED 800 billion by 2031, as outlined in the national strategy We the UAE 2031.
“The CEPA program has accelerated this upward trajectory,” said a statement from the UAE government, emphasizing that the agreements are already transforming trade flows and boosting opportunities for local businesses.
Since its CEPA with India took effect in May 2022, the UAE has seen a 20.5% rise in bilateral non-oil trade, with exports to India up 75% by the end of 2024. Similar gains have followed with other partners: trade with Turkiye rose 11%, Indonesia by over 15%, and Georgia by an impressive 56%.
Sectors Benefiting from CEPA Deals
The agreements are unlocking new potential for high-value industries, including logistics, clean and renewable energy, advanced technology, financial services, and green agriculture.
The UAE Ministry of Economy has emphasized that these trade pacts enable local firms to access new markets and scale international operations, particularly in sectors aligned with global sustainability goals.
Regional Momentum for Free Trade
The UAE’s aggressive CEPA rollout is part of a wider trend across the Gulf Cooperation Council (GCC), with other member states also pursuing free trade pacts.
Saudi Arabia, Qatar, and Oman are each engaged in negotiations with Japan, India, and the UK, while New Zealand signed a deal with the full GCC bloc in late 2024. China has also called for accelerated free trade discussions with the Gulf nations.
As competition intensifies across global trade corridors, the UAE’s proactive approach to economic diplomacy is cementing its status as a vital hub for commerce between East and West.
