Today's Edition
ABU DHABI (WAM)
The Comprehensive Economic Partnership Agreement (CEPA) between the UAE and the Hashemite Kingdom of Jordan will officially come into effect on Thursday, heralding a new era of economic cooperation.
This landmark agreement is the first CEPA signed between the UAE and an Arab nation, aimed at enhancing trade and investment ties, stimulating growth in key sectors, and empowering small and medium-sized enterprises (SMEs).
With the CEPA entering into force on Thursday, May 15, the two nations aim to boost bilateral non-oil trade to over $8 billion by 2032.
This follows impressive year-on-year growth between 2023 and 2024 of 34.1 percent, with non-oil trade between the two nations reaching approximately $5.62 billion in 2024.
The agreement will eliminate or reduce tariffs and remove trade barriers, enhancing market access and strengthening regional and global supply chains.
Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, stated, "This agreement signifies a new era of collaboration, enhancing our economic ties and creating a framework for shared growth and prosperity. Jordan has long been a valued partner for the UAE, and through this CEPA, we are poised to unlock numerous opportunities that will benefit both nations."
Jordan has been a vital partner for the UAE for many years, with bilateral non-oil trade experiencing tremendous growth over the last decade, increasing by 138 percent.
The UAE is Jordan’s fifth-largest trading partner globally, while the UAE remains the largest foreign investor in Jordan, with mutual investments estimated at approximately $22.5 billion.
The CEPA is expected to create significant opportunities across various sectors, including renewable energy, pharmaceuticals, logistics, and tourism. Jordan’s highly-skilled workforce and strong industrial base, particularly in the production of phosphates, textiles, and pharmaceuticals, complements the UAE’s expertise in energy, infrastructure, and finance, fostering a collaborative environment that enhances the global reach of both nations.
The agreement was finalised following three rounds of negotiations, highlighting the shared commitment of both countries to quickly realize the benefits of the new agreement. The CEPA will also support SMEs by reducing trade restrictions and offering platforms for collaboration that will empower the next generation of entrepreneurs and innovators, and ensure that the economic benefits are widely shared.
The CEPA programme is a vital element of the UAE’s economic growth strategy, highlighting its commitment to establishing strong global trade partnerships. The UAE aims to double its economy to $800 billion by 2030, and achieve over $1.1 trillion in total non-oil trade value by 2031.
The programme significantly contributed to the UAE's record non-oil trade of $816 billion in 2024, reflecting a 14.6 percent increase from 2023. With 27 concluded agreements, the CEPA programme expands access for UAE businesses to over a quarter of the world's population.
