UAE And Azerbaijan Presidents Witness Signing Of Comprehensive Economic Partnership Agreement For Enhanced Trade

The UAE and Azerbaijan have taken a significant step in their economic relationship by signing a Comprehensive Economic Partnership Agreement (CEPA). This agreement, witnessed by UAE President Sheikh Mohamed bin Zayed Al Nahyan and Azerbaijan's President Ilham Aliyev, aims to foster economic growth and diversification between the two nations. It reflects their strategic partnership and shared vision for prosperity.

Sheikh Mohamed bin Zayed Al Nahyan highlighted that CEPA is a testament to the UAE's dedication to forming global partnerships that support sustainable development. He emphasized its role in promoting peace, stability, and opportunities for future generations. The agreement marks a pivotal moment in UAE-Azerbaijan relations, focusing on building an economy driven by knowledge and innovation.

The CEPA is designed to enhance investment flows and create opportunities in critical sectors such as renewable energy, tourism, logistics, and construction services. It also aims to boost private sector collaboration, strengthen supply chains, and empower entrepreneurs and small businesses to expand globally. This initiative is expected to open new avenues for economic cooperation.

Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, and Mikayil Jabbarov, Minister of Economy of Azerbaijan, signed the agreement. Their collaboration signifies a commitment to strengthening ties between the two countries through increased trade and investment. The agreement builds on years of close cooperation between the UAE and Azerbaijan.

The UAE-Azerbaijan CEPA is a crucial addition to the UAE's global trade programme. In 2024, bilateral non-oil trade between the two countries rose by 43% year-on-year, reaching USD 2.4 billion. The UAE stands as a major trading partner for Azerbaijan and is the leading Arab investor there, with investments surpassing USD 1 billion.

The CEPA programme plays a vital role in the UAE's foreign trade strategy. It aims to increase non-oil foreign trade to USD 1.1 trillion by 2031. In 2024 alone, it contributed to a record non-oil trade figure of USD 816 billion for the UAE, marking a 14.6% increase from the previous year.

Expanding Global Reach

With 27 agreements already concluded under the CEPA programme, it underscores the UAE's commitment to open and rules-based trade practices that drive economic growth. This approach helps diversify the economy while expanding opportunities for UAE businesses by enhancing access to high-growth markets worldwide that represent over a quarter of the global population.

This strategic move not only strengthens bilateral ties but also positions both nations for future economic success through collaborative efforts in various sectors. The CEPA serves as a foundation for continued cooperation and mutual benefit between the UAE and Azerbaijan.

With inputs from WAM