On December 11, 2024, the United Arab Emirates (UAE) and the Eurasian Economic Union (EAEU) successfully concluded negotiations for a comprehensive Economic Partnership Agreement (EPA). The EAEU comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. The agreement was confirmed by UAE Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, and Andrey Slepnev, the EAEU Minister for Trade. This EPA aims to enhance bilateral trade, improve market access, and eliminate trade barriers between the UAE and EAEU member states [238991e7].
The negotiations come on the heels of a significant increase in trade between the UAE and the EAEU, with non-oil trade reaching $13.7 billion in the first half of 2024, marking a 29.6% increase compared to the same period in 2023. The agreement will also focus on fostering digital trade and collaboration among small and medium-sized enterprises (SMEs) [238991e7].
This development is part of a broader trend of the UAE expanding its economic partnerships globally. In the first half of 2024, the UAE's non-oil foreign trade reached a record 1.4 trillion dirhams (approximately $381.5 billion), bolstered by the establishment of various Comprehensive Economic Partnership Agreements (CEPA) with countries such as India, Turkey, and Israel. The UAE's non-oil exports surged by 25% year-on-year, indicating a strong recovery post-pandemic [30a311a5].
In addition to the EAEU agreement, the UAE has been actively pursuing trade agreements with other nations, including a CEPA with Papua New Guinea, which aims to enhance trade relations and economic cooperation. PNG's Minister for International Trade and Investment, Richard Maru, emphasized the importance of these agreements for accessing the broader Arab market [3907d02f].
Furthermore, the UAE's economic strategy includes a CEPA with Morocco, finalized on July 27, 2024, and a similar agreement with Chile, aimed at increasing bilateral trade to $750 million by 2030. The UAE's proactive approach to expanding its economic partnerships is evident in its growing trade links across Africa, where trade reached a record $154 billion in 2022 [fa3ef9d2][3e5172be][acd2b2c3].
Overall, the UAE's strategic initiatives and agreements are set to bolster its position as a global trade hub while fostering economic growth and collaboration with various international partners [238991e7].