UAE

The United Arab Emirates (UAE) is stepping up its efforts to forge bilateral trade deals as part of its strategy to diversify its economy parallel to fossil fuels and consolidate its geopolitical position. The UAE is aiming to sign 26 free trade agreements (usually called Comprehensive Economic Partnership Agreements or CEPAs) over the next few years, positioning itself as a key player in the global supply chain.

It is also a member of the regional Gulf Cooperation Council, which is a party to a number of free trade agreements, and the Greater Arab Free Trade Area.

Already an established business and tourism hub, the UAE seeks to consolidate its status as a financial powerhouse and expand into sectors such as clean energy, technology and agribusiness. Food security is a critical geostrategic concern for the UAE, given its reliance on food imports. Through a tightly controlled network of ports and logistics platforms, and new CEPAs, the UAE aims to become a central hub in the global agri-food trading system, where corporations can import and re-export products across Asia, Africa and Europe quickly and duty-free.

The UAE's ambitious network of free trade agreements spans the globe. In Africa, it has signed trade deals with Kenya, Mauritius, Morocco and the Republic of Congo, and is seeking more, including with Nigeria and the East African Community. Bilateral investment treaties have been signed with Ethiopia, Liberia, Nigeria and Zimbabwe. Over the past decade, the UAE has invested US$59.4 billion in the continent. New free trade agreements and opportunities arising from the African Continental Free Trade Area are likely to accelerate this trend.

In Latin America, the UAE has inked deals with Chile, Colombia and Costa Rica, and is negotiating with Ecuador, Mercosur and Peru. Its presence in the Asia-Pacific region is also growing, with CEPAs signed with Cambodia, India, Indonesia, Israel, South Korea and Türkiye, and ongoing negotiations with Australia, Hong Kong, Malaysia, New Zealand, Pakistan, the Philippines, Thailand and Vietnam. An agreement with Bangladesh is at an early stage.

In Europe, agreements have been signed with Georgia, Serbia and Ukraine, and negotiations are underway with the Russia-led Eurasian Economic Union. Future potential deals include those with Belarus and the European Union.

The UAE and Canada signed a bilateral investment treaty in 2018.

As the UAE accelerates its post-oil economy plans, these comprehensive trade agreements will play a key role in shaping its new economic landscape.

last update: August 2024
Photo: DP World / Facebook