Talks between the UAE and the European Union have focused on the Comprehensive Economic Partnership Agreement (CEPA), aimed at strengthening trade connections and facilitating investment and innovation.
The proposed CEPA between the UAE and the EU seeks to eliminate trade obstacles, improve market access for products and services, and generate investment in key sectors.
At an investment roundtable, members from both the UAE and European private sectors discussed shared investment prospects, particularly those that promote innovation and sustainable development.
Dr. Thani bin Ahmed Al Zeyoudi, the UAE’s Minister of State for Foreign Trade, highlighted the significance of the CEPA with the EU, stating that it “presents a remarkable chance… to enhance trade and investment relations, fostering increased collaboration and collective prosperity.”
“Through our partnership, we aim to fortify our supply chains, stimulate innovation, and generate employment that will provide long-lasting benefits to our communities and economies.”
EU Commissioner for Trade and Economic Security Maroš Šefčovič noted the negotiations, stating: “A bilateral free trade agreement would unlock significant business opportunities for both European and Emirati companies. Our goal is to attain a bold agreement that delivers enduring advantages and commercial certainty.”
As of now, the EU represents 8.3 percent of the UAE’s non-oil trade, which totaled $67.6 billion in 2024, marking a 3.6 percent increase from the previous year. Strong foreign direct investment exists between the two, with recent partnerships in areas such as data centers in Italy, solar energy in Spain, and urban regeneration projects in Budapest.
Looking forward, the CEPA has the potential to pave the way for further impactful agreements, including a potential $50 billion AI data center partnership with France and a $40 billion investment in Italy’s energy and defense sectors.
The CEPA initiative is essential to the UAE’s foreign trade strategy, aimed at enhancing economic diversification through transparent, rules-based trade. In 2024, the initiative played a key role in achieving record non-oil trade of $816 billion, reflecting a 14.6 percent increase compared to the previous year.