The UAE and Georgia have launched a Comprehensive Economic Partnership Agreement (CEPA) aimed at significantly boosting their economic collaboration and expanding non-oil trade.
UAE and Georgia CEPA
The UAE and Georgia have embarked on a mission to significantly expand their economic ties through a newly launched Comprehensive Economic Partnership Agreement (CEPA). This landmark agreement aims to triple non-oil trade between the two nations, targeting a total trade value of $1.5 billion within five years. By eliminating or reducing customs duties on 95% of tariff lines covering over 90% of bilateral non-oil trade, the CEPA aims to remove trade barriers and enhance market access for service exports.
Economic Impact and Growth Projections
The UAE-Georgia CEPA is projected to contribute $3.9 billion to the UAE's GDP and $291 million to Georgia's GDP by 2031. It aims to boost UAE exports to Georgia, particularly in sectors such as refined sugar, electrical appliances, vehicles, polymers, and machinery. Currently, the UAE stands as Georgia's leading trading partner among Arab nations, accounting for more than 63% of the country's total trade with the region.
The United Arab Emirates and Georgia's bilateral non-oil trade hit $511.2 million in 2023, up 6.3% from the previous year. The United Arab Emirates is the sixth-largest investor in Georgia, with over $1 billion in investments in a wide range of industries, including tourism, retail, manufacturing, renewable energy, and real estate.
Dr. Thani bin Ahmed Al Zeyoudi, UAE's Minister of State for Foreign Trade, emphasized the strategic importance of the CEPA in enhancing bilateral relations with Georgia. He highlighted Georgia's strategic location at the crossroads of Europe and Asia, making it an attractive market for UAE businesses seeking to expand their footprint. The agreement, he noted, is designed to benefit both nations, fostering investment in key sectors and contributing to global economic recovery.
The UAE's pursuit of CEPA agreements is part of a broader strategy to strengthen trading relationships with dynamic global markets. In addition to Georgia, the UAE has implemented similar agreements with India, Indonesia, Israel, Turkey, and Cambodia, with ongoing negotiations with several other nations across Asia, Europe, Africa, and South America.
Moreover, the UAE-Georgia CEPA represents a pivotal step towards deepening economic cooperation, enhancing trade diversification, and fostering mutual prosperity between the two nations.