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5/30/25, 4:39 PM EU, UAE Begin FTA Negotiations To Deepen Economic Ties
the UAE's Foreign Trade Minister Thani Bin Ahmed Al Zeyoudi in Abu Dhabi on Wednesday to
begin negotiations on the FTA.

The visit also featured a roundtable with top private sector companies to explore ways to boost

collaboration and investment between the EU and UAE.

Shepchowicz said that the agreement, which will focus on trade and investment, is expected to

support lasting economic growth and open new opportunities for European and Emirati businesses.

It aims to eliminate trade barriers, improve market access for goods and services, and boost
investment across key sectors.

The agreement could help unlock a $50 billion AI data center deal with France and a $40 billion
commitment in Italy’s energy and defense sectors.

"By working together, we will strengthen our supply chains, drive innovation, and create jobs that

will benefit our communities and economies for many years to come," Al Zeyoudi said.

The UAE and EU share ambitious goals for green and digital transformation, with strong alignment

in areas like renewable energy, green hydrogen, critical minerals, artificial intelligence (AI), fintech,

and sustainable food systems.

The FTA aligns with both parties' goals of diversifying trade and investment partners.

Key background

The negotiations started last month during a phone call between European Commission President

Ursula von der Leyen and the UAE's President Sheikh Mohammed bin Zayed Al Nahyan.

Tangent

Mohamed Al Sahlawi, the UAE's ambassador to Belgium, Luxembourg, and the EU, met on

Monday with Wallonia's Minister-President Adrien Dolimont to discuss enhancing trade,
investment, and innovation ties, with a focus on sustainability and economic development.

EU-UAE trade

The UAE is the EU's second-largest trading partner in the Gulf region, with trade in goods
nearing $63.2 billion and exceeding $44 billion annually in services. Mutual investments amount

to $370.5 billion. In 2024, non-oil trade between the two reached $67.6 billion, representing a
growth of 3.6% over 2023.

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