The United Arab Emirates and the European Union are fast-tracking discussions on a Comprehensive Economic Partnership Agreement (CEPA) that aims to enhance their $67.6 billion non-oil trade relationship. This potential deal is set to strengthen economic cooperation, ease market access, and attract major investment.
A Strategic Push Toward Trade Integration
As part of these efforts, UAE Minister of State for Foreign Trade, Thani bin Ahmed Al Zeyoudi, welcomed EU Commissioner for Trade and Economic Security, Maroš Šefčovič, for in-person talks in the UAE. Additionally, the visit featured an investment roundtable with leading private sector representatives from both regions. The roundtable focused on exploring collaboration opportunities and boosting cross-border capital flows.
“Our negotiations with the EU on CEPA present an extraordinary chance to expand trade and investment,” said Al Zeyoudi. “By collaborating closely, we will create stronger supply chains, support innovation, and generate jobs that benefit both our economies.”
Šefčovič shared a similar outlook. “A bilateral FTA would unlock huge opportunities for businesses in both regions,” he said. “We aim to finalise a commercially meaningful deal that delivers tangible benefits and long-term predictability.”
Unlocking Trade and Investment Potential
The CEPA agreement aims to remove trade barriers and improve access to goods and services across both markets. More importantly, it will boost investments in key growth sectors. By offering better entry into the EU—currently the world’s second-largest economic bloc—the CEPA will solidify the UAE’s role as a global trade and logistics hub.
Non-oil trade between the UAE and EU reached $67.6 billion in 2024, marking a 3.6% increase from 2023. Today, the EU accounts for 8.3% of the UAE’s total non-oil trade, underlining the significance of this relationship.
Already, Foreign Direct Investment (FDI) flows between the two are robust. Recent partnerships include data centres in Italy, solar power plants in Spain, and neighbourhood redevelopment projects in Budapest. The CEPA could also unlock future mega deals, such as a $50 billion AI data centre initiative in France and a $40 billion investment commitment in Italy’s energy and defence sectors.
A Key Pillar of the UAE’s Trade Agenda
CEPA agreements are central to the UAE’s foreign trade strategy. They reflect the country’s push for open, rule-based trade to drive economic growth and diversification. By enhancing global market access, these deals have contributed to record-breaking non-oil trade levels. In fact, the UAE recorded $816 billion in non-oil trade in 2024, a 14.6% increase over 2023.
As the UAE and EU continue to negotiate, the CEPA promises to reshape economic relations, deepen investor trust, and pave the way for shared prosperity in the years ahead.
