The Finance World Magazine| Edition: April 2023

With the UAE and Turkey
being two of the fastestgrowing
economies in the
world, the CEPA agreement
promises to bring mutual benefits for
both nations, for it covers a wide
range of areas with a great potential
for achieving significant growth; it is
evident that the CEPA will pave the way
for enhanced cooperation between the
UAE and Turkey, creating a conducive
environment for businesses to thrive
and contribute to the economic growth
of both nations.
According to H.E. Dr. Thani bin
Ahmed Al Zeyoudi, the Minister of State
for Foreign Trade, the trade partnership
between the UAE and Turkey has grown
by 40% in 2022 compared to the previous
year, making Turkey the UAE’s sixthlargest
trading partner. Last year, the
non-oil foreign trade between the two
countries reached $18.9B.
Furthermore, the UAE-Turkey CEPA
agreement will eliminate tariffs from
83% of the goods traded between
the two countries, and liberalize
non-oil trade by 93%. This move will
create new business opportunities
in sectors such as agriculture, food
security, telecommunications, logistics,
renewable energy, and real estate.
Dr. Al Zeyoudi predicts that the
partnership will result in an annual trade
volume of over $40B within five years,
and generate more than 25,000 jobs,
particularly in skilled labor sectors, in
the UAE by 2031. Moreover, the UAE’s
exports to Turkey are anticipated to
increase by 20% during the next phase.
He announced that the UAE-Turkey
CEPA is expected to be approved by
the end of the second quarter of 2023.
He mentioned that with the addition of
Turkey to the list of countries with which
the UAE has signed CEPA agreements,
along with India, Indonesia, and Israel,
the UAE will have access to new markets
that reach over 2.2 billion people,
including the Greater Arab Free Trade
Area Agreement signed more than 15
years ago.
These agreements are projected to
increase the UAE’s GDP by over 2.4% by
2031, and boost UAE exports by $120B
over the next decade, creating more
economic and trade opportunities. Dr.
Al Zeyoudi explained that after signing
the agreement with Turkey, the UAE’s
economy will be linked to over 10% of
the global economy, ensuring significant
growth in the UAE’s economy.
The UAE’s trade expansion creates ideal
environment for foreign investors, unlocking
thousands of new business opportunities.
Dr. Al Zeyoudi also mentioned that
the UAE is making rapid progress in
establishing comprehensive economic
partnerships. He stated that the UAE is
finalizing agreements with Cambodia
and Georgia in the next 3 to 4 weeks,
as well as two agreements with Kenya,
which are 85% complete, providing a
crucial gateway to Africa. Additionally,
he hinted at a forthcoming agreement
with Colombia, noting that negotiations
were postponed until after the elections
and would resume soon.
He added that the UAE intends to
use CEPAs as a means of expanding
partnerships with ASEAN countries,
with negotiations already in progress
with Thailand and Vietnam. He also
stated that the UAE is also looking to
expand in Africa and South America,
which would have a positive impact
on the country’s trade growth.
Furthermore, he disclosed that the
UAE is in the process of developing
comprehensive economic partnership
agreements with two economic blocs in
the Eurasian region, with negotiations
commencing soon and concluding
within 6 months.
The UAE has been committed to
enhancing its economic standing on a
global scale, and the recently signed
Comprehensive Economic Partnership
Agreement with Turkey serves as a
crucial milestone in achieving this
objective, for it aims to strengthen trade
and investment relations between the
two nations, with a particular focus
on increasing bilateral cooperation
in the areas of industry, agriculture,
and tourism.
Moreover, the UAE’s proactive
approach to engaging in strategic
economic partnerships has been
instrumental in paving the way towards
becoming a mega economy. The CEPA
with Turkey is an example of the UAE’s
efforts to create a diversified and
resilient economy that can withstand
external shocks and sustain long-term
growth.
By expanding its trade relations
beyond traditional partners and
embracing new markets, the UAE
is well-positioned to emerge as a
key player in the global economic
landscape, attracting more foreign
investors and creating thousands of new
business opportunities. The country’s
commitment to creating a businessfriendly
environment has been a key
driver of its success in attracting foreign
investors, as the country offers a range
of incentives and benefits to foreign
investors, including tax exemptions,
access to advanced infrastructure,
and streamlined regulatory processes,
resulting in the emergence of a vibrant
startup ecosystem, attracting some
of the world’s most promising new
businesses.
April 2023 www.thefinanceworld.com 23