Beginning on September 1, the United Arab Emirates (UAE) will commence trade agreements with Turkey and Indonesia.
These Comprehensive Economic Partnership Agreements (CEPA) pledge to usher in a fresh era of collaboration in trade and investment with two swiftly emerging global economies.
The UAE-Turkey CEPA and the UAE-Indonesia CEPA aim to reduce tariffs, remove trade barriers, and foster investment in key sectors like logistics, energy, food production, fintech, e-commerce, and tourism.
Boosting Bilateral Services Trade Value
The UAE-Indonesia CEPA, signed in Abu Dhabi in July 2022, is expected to raise bilateral non-oil trade value from its current $4.08 billion to over $10 billion within a span of five years.
Furthermore, the agreement aims to increase the total value of services trade between the two countries to $630M by 2030, according to Arabian Business.
As per the CEPA terms, over 80 percent of UAE exports to Indonesia will no longer be subject to customs duties.
In 2022, Turkey saw the fastest growth among the UAE’s top trading partners, with non-oil trade surging by 40% to $18.9B.
The UAE-Turkey CEPA has cut or reduced customs duties on 82% of product categories, representing over 93% of the value in non-oil trade.
Strengthening Ties with Turkey and Indonesia
Dr. Thani bin Ahmed Al-Zeyoudi, Minister of State for Foreign Trade, said, “The implementation of our Comprehensive Economic Partnership Agreements with Turkey and Indonesia marks a significant step forward in our foreign trade program.”
“Both agreements will unlock a range of opportunities for our private sector in two of the world’s most dynamic centres of growth, and help broaden our network of trade partnerships with strategically important markets – both regionally and globally.”
He added, “These agreements have been strategically crafted to invigorate and streamline the movement of non-oil trade, ensuring resilient supply chains and fostering opportunities for partnerships among the business communities in each partner country.”
“These agreements will act as catalysts for channelling investments into promising sectors including energy, logistics, tourism, the Islamic economy, agriculture, and more.”
He stressed that the Comprehensive Economic Partnership Agreements plays a vital role in attaining the nation’s objectives, in particular the vision laid out in “We The UAE 2031”, which seeks to double the UAE’s non-oil foreign trade to AED 4T and elevate national exports to AED 800B.”
The latest statistics for H1, 2023 reveal a remarkable AED 1.239T in non-oil foreign trade, setting a new record for the UAE.
