2025 Outlook: Expanding UAE CEPA Network to Drive Economic Growth

The Growth Strategy of Non-Oil Trade in the UAE

In an increasingly interconnected world, the United Arab Emirates (UAE) is positioning itself as a key player in international trade. As 2025 approaches, the country has outlined an ambitious strategy to expand its network of Comprehensive Economic Partnership Agreements (CEPA). This approach aims not only to diversify the UAE's economy but also to achieve a monumental goal: $1 trillion in non-oil trade by 2031. With this initiative, the UAE is set to solidify its role as a global hub for commerce and investment.

Since its launch in 2021, the CEPA program has enabled the UAE to sign 24 agreements that impact approximately 2.5 billion people, representing nearly 25% of the world's population. These agreements are designed to foster strong and sustainable trade relationships and are driving significant growth in the country's non-oil trade. In the first half of 2024, the UAE's foreign trade surpassed AED 1.395 trillion, marking an 11.2% increase compared to the previous year.

Economic Implications and Benefits for Exporters

The tangible impact of CEPA agreements is evident in the growth of trade and foreign investment. With tariff eliminations and streamlined trade processes, UAE exporters greatly benefit from access to new markets under favorable conditions. For instance, the CEPA between the UAE and India has eliminated tariffs on over 80% of products, thus facilitating substantial opportunities for local businesses.

The diversity of these agreements also reflects the UAE's ability to establish effective collaborations across various sectors, from clean energy to advanced technology. The vision articulated by Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, underscores the importance of these agreements in promoting rules-based international trade and sustainable development. As more agreements are signed with countries like Australia and Vietnam, local businesses can expect even greater opportunities.

Future Projections

Looking ahead, the UAE plans to continue expanding its CEPA network in 2025, aligning with its "Projects of the 50" initiative aimed at driving sustainable development and economic diversification. As more trade facilitation agreements come into effect, businesses in the UAE can anticipate broader market access and further simplification of trade processes.

This focus will not only benefit local companies but also attract foreign investments into the country. Sectors such as green industries and digital technology are expected to experience significant growth due to these new trade partnerships.

The expansion of the UAE's CEPA program is a testament to the country's commitment to sustainable economic growth and building robust global trade partnerships. With a clear vision for the future and a well-defined strategy, the UAE is positioning itself as a leader in international commerce while navigating an increasingly complex geopolitical landscape. Businesses and investors should remain vigilant for emerging opportunities to maximize their participation in this exciting commercial journey.