On January 23, 2025, the United Arab Emirates (UAE) announced the expansion of its Comprehensive Economic Partnership Agreements (CEPA) network as a strategic move to shield its economy from global trade risks and ensure sustained access to international markets. Mohammed Alhawi, undersecretary at the UAE’s Ministry of Investment, highlighted the importance of diversifying partners and sectors, stating that the CEPA deals collectively provide access to a market of three billion people [c26503a3].
This initiative follows the successful conclusion of negotiations for a comprehensive Economic Partnership Agreement (EPA) between the UAE and the Eurasian Economic Union (EAEU) on December 11, 2024. The EAEU, which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, aims to enhance bilateral trade and eliminate trade barriers [238991e7].
The UAE's proactive approach has already resulted in recent CEPA agreements signed with New Zealand and Malaysia, with plans to establish a total of 26 CEPA agreements. Existing partnerships include those with India, Turkey, and South Korea. These agreements are projected to contribute an additional 2.6% to the UAE's economy by 2030 [c26503a3].
The UAE's economy has shown resilience, growing by 3.6% in the first half of 2024, with the non-oil GDP increasing by 4.4% to reach 660 billion dirhams. Furthermore, the UAE attracted $30.68 billion in foreign direct investment (FDI) in 2023, marking a 35% increase from the previous year. The UAE aims to double its cumulative FDI to 1.3 trillion dirhams by 2031 [c26503a3].
In light of rising protectionism globally, the UAE is implementing proactive policies to mitigate potential risks. The CEPA network expansion is part of a broader strategy to enhance trade relations and ensure economic stability amid uncertain global trade dynamics [c26503a3].
Overall, the UAE's strategic initiatives, including the recent EPA with the EAEU and the expansion of its CEPA network, position the nation as a resilient player in the global economy, fostering growth and collaboration with various international partners [238991e7].