Dr. Thani Al Zeyoudi, the Minister of State for Foreign Trade in the UAE, recently hosted Maroš Šefčovič, the European Commissioner for Trade and Economic Security, in the United Arab Emirates. This meeting was part of ongoing discussions regarding the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and the European Union.
The agenda included an investment roundtable featuring prominent private sector representatives, with the goal of enhancing cooperation and stimulating investment between the EU and the UAE.
The EU currently stands as one of the UAE’s primary trading partners, contributing to 8.3 percent of the nation’s non-oil trade.
In 2024, the non-oil trade volume escalated to $67.6 billion, reflecting a 3.6 percent increase compared to 2023.
The CEPA between the UAE and the EU is expected to serve as a crucial step in bolstering economic relations and creating new channels for trade and collaboration. This agreement aims to eliminate trade obstacles, improve market access for goods and services, and promote investment in vital sectors. By facilitating access to the EU market, the second largest economic entity globally, the CEPA will further solidify the UAE’s position as a global trade and logistics center.
Al Zeyoudi highlighted the significance of the CEPA, stating, “Our negotiations surrounding the UAE-EU Comprehensive Economic Partnership Agreement are vital for both entities. This endeavor represents an extraordinary opportunity to enhance our trade and investment relations, fostering greater collaboration that leads to mutual benefits and prosperity. By joining forces, we can strengthen our supply chains, spark innovation, and create jobs that will positively impact our communities and economies for years to come.”
Maroš Šefčovič remarked, “Europe remains a trustworthy trading partner that honors its commitments. It is only natural to look to expand our collaboration with established and reliable allies such as the United Arab Emirates.
A bilateral Free Trade Agreement (FTA) would unveil significant business opportunities for both European and Emirati enterprises. Our objective is to negotiate a strong deal that yields substantial and enduring benefits, while also providing the predictability that is essential for any successful business. This would enhance our regional partnerships with Gulf Cooperation Council nations.”
During the investment roundtable, representatives from the private sectors of the UAE and Europe engaged in dialogues to pinpoint collaborative investment opportunities that will foster innovation and sustainable economic progress. The foreign direct investment (FDI) flows between these two regions are already impressive, with recent collaborations encompassing projects such as data centers in Italy, solar plants in Spain, and community redevelopment in Budapest. The UAE-EU CEPA is anticipated to unveil further opportunities, including a $50 billion AI data center initiative with France and a $40 billion investment in Italy’s energy and defense industries.
The CEPA initiative is a fundamental component of the UAE’s foreign trade strategy, demonstrating the country’s commitment to open, rules-based trade that drives economic expansion and diversification. By improving access to global markets and strengthening trade and investment connections with partners worldwide, the CEPA program has contributed to a record total of $816 billion in non-oil trade in 2024, a 14.6 percent rise compared to 2023.
On a related note, Dubai Chambers sought to explore the possibilities for enhancing trade and investment ties between Dubai and EU member states during a recent roundtable attended by a distinguished delegation led by Maroš Šefčovič.
Participants in the roundtable included Sultan Bin Saeed Al Mansoori, Chairman of Dubai Chambers; Dr. Thani Bin Ahmed Al-Zeyoudi; Lucie Berger, the EU Ambassador to the UAE; Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers; and Leon Delvaux, Director at the Directorate-General for Trade and Economic Security, along with representatives from the private sectors of both regions.
Dr. Thani Al Zeyoudi noted, “The European Union stands as a central pillar of the global economy and is our second most significant trade partner. As we expedite efforts to align our markets, it is crucial that we establish platforms that allow our private sectors to discover and pursue avenues for collaboration, particularly in sectors that correspond with our economic diversification goals. The EU-UAE Investment Roundtable represents a significant opportunity for business leaders across various industries to forge relationships that can elevate trade and investment to unprecedented levels.”
Sultan Bin Saeed Al Mansoori added, “Dubai and the European Union share deeply rooted economic connections based on mutual interests and a shared commitment to nurturing a diversified and sustainable economy. Today’s roundtable aims to promote synergy in high-potential sectors and uncover new growth opportunities. We are dedicated to aiding European companies in expanding and succeeding while leveraging Dubai as a strategic hub for accessing new opportunities within regional markets.”