The United Arab Emirates (UAE) is rapidly advancing its trade diversification strategy through a growing network of Comprehensive Economic Partnership Agreements (CEPAs), positioning itself as a key hub for global commerce. Designed to reduce tariffs, dismantle barriers, and open new avenues of cooperation, CEPAs are expected to significantly boost the country’s non-oil trade and attract fresh investment.
So far, 28 nations have signed agreements with the UAE under the initiative, which already contributes more than Dh135 billion to the country’s non-oil trade. Eleven of these deals are active, while 14 are awaiting ratification. Negotiations with Armenia, Morocco, and the Philippines have also concluded positively, and further discussions with Japan, Pakistan, and other partners are at advanced stages.
In 2025, the UAE secured seven new agreements with countries including Malaysia, New Zealand, Kenya, Ukraine, and Angola. Among them, the CEPA with New Zealand, which took effect on August 27, stands out as the Pacific nation’s first trade deal with a Middle Eastern country. It is projected to raise bilateral trade to $5 billion by 2032, up from $1.5 billion recorded between 2019 and 2023.
Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, described the UAE–New Zealand pact as a “historic milestone” that will drive innovation and sustainable growth. He highlighted that the agreement will expand cooperation in sectors such as food production, renewable energy, education, and advanced technologies.
Economists believe the initiative is a game-changer for the UAE. Dr. Monica Malik, Chief Economist at Abu Dhabi Commercial Bank, said CEPAs will strengthen the country’s economic integration while enhancing its resilience. “They will help build the UAE’s role as a trade and business hub, attracting capital and boosting competitiveness,” she noted.
The results are already visible. In 2024, the UAE’s non-oil foreign trade grew by 14.6% year-on-year, reaching $816.7 billion. With CEPAs in place, the government aims to expand non-oil trade to $1.1 trillion by 2031. Agreements with key partners such as India, Israel, Turkey, and Indonesia are central to this vision. The UAE–India CEPA, for example, has set a target of $100 billion in bilateral trade within five years, while trade with Israel is projected to hit $10 billion by 2030. Similarly, the deal with Turkey could double trade to $40 billion within five years, while the UAE–Indonesia partnership is targeting $10 billion in non-oil trade.
Business leaders argue that the UAE’s proactive approach offers stability in a time of trade wars and geopolitical uncertainty. Rajeev Kakar, former Citibank executive and founder of Dunia Finance, called CEPAs a “vital growth catalyst,” adding that they harmonise trade standards and create predictability for investors.
With its strategic location bridging Asia, Europe, and Africa, coupled with world-class infrastructure, the UAE is using CEPA agreements to cement its role as a leading global trade hub. Experts say this strategy not only reduces dependence on oil but also strengthens the nation’s long-term competitiveness in an increasingly fragmented global economy.
