Page 204 - MOE ENGLISH PR REPORT - MAY 2025 (Part 1)_Neat

5/30/25, 4:56 PM UAE and EU Advance Talks on $68 Billion Trade Pact Through CEPA Deal
“Our negotiations with the EU on CEPA present an extraordinary chance to expand trade and
investment,” said Al Zeyoudi. “By collaborating closely, we will create stronger supply chains,

support innovation, and generate jobs that benefit both our economies.”

Šefčovič shared a similar outlook. “A bilateral FTA would unlock huge opportunities for
businesses in both regions,” he said. “We aim to finalise a commercially meaningful deal that

delivers tangible benefits and long-term predictability.”

Unlocking Trade and Investment Potential

The CEPA agreement aims to remove trade barriers and improve access to goods and services
across both markets. More importantly, it will boost investments in key growth sectors. By

offering better entry into the EU—currently the world’s second-largest economic bloc—the
CEPA will solidify the UAE’s role as a global trade and logistics hub.

Non-oil trade between the UAE and EU reached $67.6 billion in 2024, marking a 3.6% increase

from 2023. Today, the EU accounts for 8.3% of the UAE’s total non-oil trade, underlining the
significance of this relationship.

Already, Foreign Direct Investment (FDI) flows between the two are robust. Recent partnerships
include data centres in Italy, solar power plants in Spain, and neighbourhood redevelopment

projects in Budapest. The CEPA could also unlock future mega deals, such as a $50 billion AI
data centre initiative in France and a $40 billion investment commitment in Italy’s energy and

defence sectors.

A Key Pillar of the UAE’s Trade Agenda

CEPA agreements are central to the UAE’s foreign trade strategy. They reflect the country’s push

for open, rule-based trade to drive economic growth and diversification. By enhancing global
market access, these deals have contributed to record-breaking non-oil trade levels. In fact, the

UAE recorded $816 billion in non-oil trade in 2024, a 14.6% increase over 2023.

As the UAE and EU continue to negotiate, the CEPA promises to reshape economic relations,
deepen investor trust, and pave the way for shared prosperity in the years ahead.

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