The United Arab Emirates and Serbia have officially launched their Comprehensive Economic Partnership Agreement (CEPA), signalling a major step forward in bilateral trade relations. This strategic agreement is expected to contribute $351 million to the UAE’s GDP by 2031, while promoting deeper investment and private sector collaboration.
Trade Agreement to Drive Growth and Innovation
The CEPA opens new trade channels by reducing or eliminating tariffs on over 96% of product lines. It also fosters investment in key sectors like renewable energy, agriculture, logistics, and technology. The agreement aims to improve market access and create a more competitive business landscape for both nations.
Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, highlighted the significance of the deal:
The activation of the UAE-Serbia CEPA heralds a new chapter in our economic relations, creating new avenues for collaboration, investment and trade that will benefit both our nations.
“Through this agreement we are committed to unlocking significant opportunities that will create jobs, strengthen supply chains, and facilitate a thriving environment for businesses in both countries.”
Bilateral non-oil trade between the UAE and Serbia reached $121.4 million in 2024, more than doubling compared to 2021. With CEPA now in force, trade volumes are expected to grow further.
Strengthening Ties with Eastern Europe
Serbia’s diverse economy and central location in the Balkans make it a vital trade partner. The UAE already accounts for 55% of Serbia’s trade with the GCC, making it the country’s top partner in the region. CEPA strengthens this position and allows UAE companies to expand into Eastern European markets more effectively.
Foreign direct investment (FDI) between the two countries has also seen growth. The focus is on high-growth sectors that align with both nations’ development priorities.
CEPA: A Core Pillar of UAE’s Trade Strategy
The UAE-Serbia CEPA is the 10th such agreement to be activated, forming part of the UAE’s long-term plan to expand its global trade network. With 27 CEPAs signed across regions including the Middle East, Southeast Asia, and South America, the UAE aims to increase non-oil trade to $1.1 trillion and double the national economy to $800 billion by 2031.
With CEPA now active, both countries will benefit from streamlined trade processes, greater economic integration, and shared growth opportunities.
