The United Arab Emirates (UAE) and the European Union (EU) have recently launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA), marking a major step forward in strengthening economic cooperation between the two entities. UAE Minister of State for Foreign Trade, Dr. Thani Al Zeyoudi, welcomed European Commissioner for Trade and Economic Security, Maroš Šefčovič, to Dubai to discuss the details of the agreement.
During the visit, an investment roundtable was also held with representatives from leading private sector companies from both the UAE and Europe. The aim was to explore new opportunities for collaboration and increase the flow of investments between the two economies.
The CEPA agreement is set to become a milestone in deepening UAE–EU economic ties. It aims to remove trade barriers, improve market access for goods and services, and promote investment in key sectors such as renewable energy, digital technology, logistics, and manufacturing. By enhancing access to the world’s second-largest economic bloc, CEPA will further strengthen the UAE’s role as a global trade and logistics hub.
In 2024, non-oil trade between the UAE and the EU reached $67.6 billion, up 3.6% compared to 2023, accounting for 8.3% of the UAE’s total non-oil trade. The EU thus remains one of the UAE’s most important trading partners.
European Commission President Ursula von der Leyen emphasized the strategic significance of the agreement, highlighting its potential to strengthen ties between the EU and the Gulf region, create new opportunities for European businesses, and foster closer cooperation in renewable energy and advanced technologies.
Minister Al Zeyoudi stated:
“Negotiating a Comprehensive Economic Partnership Agreement between the UAE and the EU is an extraordinary opportunity for both sides. By working together, we will strengthen our supply chains, promote innovation, and create jobs that will benefit our communities and economies for years to come.”
Maroš Šefčovič also underlined:
“Europe remains a reliable trade partner. It’s only natural to deepen our relationship with long-standing, trusted partners like the UAE. An ambitious bilateral agreement would unlock enormous opportunities for both European and Emirati businesses, delivering tangible, long-term benefits and greater predictability in trade.”
During their visit to Brussels, the UAE delegation also met with high-ranking EU and Belgian government officials, discussing further collaboration in strategic sectors such as energy, logistics, and manufacturing. The central role of the financial sector in facilitating global trade was also emphasized, with particular focus on innovative technological solutions such as blockchain and decentralized finance, aimed at improving cross-border payments and enhancing SMEs’ access to supply chains.
The CEPA program is a pillar of the UAE’s foreign trade agenda and reflects the country’s commitment to an open, diversified, and rules-based economy. In 2024, the UAE’s non-oil foreign trade reached a record AED 3 trillion (approximately USD 817 billion), a 14.6% increase over 2023. Existing CEPA agreements with countries such as India, Indonesia, and Turkey have played a key role in this achievement, with exports to CEPA partners rising by 42.3%, accounting for roughly one-quarter of the UAE’s total non-oil exports.
Foreign direct investment flows between the EU and UAE are also strong, with active partnerships in strategic projects such as data centers in Italy, solar plants in Spain, and urban redevelopment projects in Budapest. Future initiatives under discussion include a potential $50 billion agreement with France for an AI data center, and a $40 billion commitment with Italy in the energy and defense sectors.
This potential agreement between the UAE and the EU therefore represents a concrete opportunity to strengthen economic, technological, and industrial cooperation between two major global trading blocs. Kelmer Group will continue to closely monitor the progress of the negotiations, offering updates and support to businesses looking to seize the opportunities arising from this landmark partnership.
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