The UAE signed its latest Comprehensive Economic Partnership Agreement (Cepa) with Serbia on Saturday and said the strategic trade deal would add $351 million to the UAE’s GDP by 2032.
The agreement, which marks the first under the UAE’s comprehensive economic partnership programme with a country that is not a member of the World Trade Organisation, is also expected to boost bilateral non-oil trade to $500 million over the next five years from the $122.9 million in 2023, while paving the way for increased trade and investment flows and bilateral private sector collaboration.
President His Highness Sheikh Mohamed bin Zayed Al Nahyan, who witnessed the signing of the agreement on Saturday in Belgrade said the deal “paves the way for a new era of economic cooperation and affirms our shared commitment to fostering lasting growth and prosperity for our countries and people.”
The UAE’s Cepa programme is expected to boost the country’s exports by 33 per cent and contribute more than Dh153 billion to its gross domestic product by 2031. The UAE, which aims to sign 26 Cepa deals, has already signed trade treaties with India, Turkey, Israel, Cambodia and Georgia, while talks are underway with Japan, Malaysia, New Zealand and Ecuador.
This month, the UAE and Malaysia are expected to sign the free trade agreement following months of negotiations during the upcoming UAE visit of Malaysian Prime Minister Anwar Ibrahim. Cepa, which the UAE has been implementing since the end of 2021, is a fundamental pillar of the country’s growth strategy, which aims to double the total value of foreign trade to Dh4 trillion by 2031.
Sheikh Mohamed commended the exchange of the Cepa as a key milestone in the relations between the UAE and Serbia.
“The Cepa exchange with Serbia is a notable step forward in our efforts to create a network of trade agreements that will accelerate investment, promote knowledge-sharing, and create opportunities for joint ventures in high-growth sectors,” he said.
“Serbia represents an important addition to the CepaA program and a bridge into the high-potential region of Eastern Europe. The UAE-Serbia CEPA reflects our shared ambition to establish a new era of collaboration between our nations and unlock long-term, sustainable growth for both our economies.”
The Serbian President Aleksandar Vučić expressed confidence that the agreement would pave the way for new opportunities in economic cooperation and diversification, fostering sustainable growth and prosperity for both nations.
Once implemented, the UAE-Serbia Cepa is expected to remove or reduce duties on product lines, lift unnecessary barriers to trade, protect intellectual property rights, support small and medium-sized companies, and facilitate mutual investment flows.
The UAE is the third-largest market for Serbian exports in the Middle East, and increased FDI has been directed toward high-priority sectors, including renewable energy, agriculture, food security, infrastructure, and logistics.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said the Cepa between the UAE and Serbia features a tariff reduction and elimination of up to 96 per cent across customs tariff lines, compared to some countries with which agreements have been signed, all of which are WTO members. This initiative comes in light of the significant potential to increase non-oil trade between the two friendly countries, Dr. Al Zeyoudi said.
The minister said the agreement constitutes a vital bridge to the Balkans and Southeast Europe with great economic potential, adding that it reflects the common ambition between the UAE and Serbia and contributes to launching a new era of bilateral cooperation and stimulating sustainable growth of the economies of both countries.
The minister pointed out that the UAE is Serbia’s largest trading partner among the GCC countries, accounting for 55 per cent of Serbia’s trade with Gulf nations. “The UAE is currently the third-largest market for Serbian exports in the Middle East and the fourth-largest trading partner for Serbia among Arab countries and Africa, according to 2023 data.”
Dr. Al Zeyoudi added that FDI between the two countries have increased toward high-priority sectors, including renewable energy, agriculture, food security, infrastructure and logistics services.