UAE-Serbia CEPA Expected to Boost UAE GDP by US$351 Million by 2032

The Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Serbia is set to add US$351 million to the UAE’s GDP by 2032, according to Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade. The agreement, the first under the UAE’s comprehensive economic partnership program with a non-World Trade Organization (WTO) member country, represents a significant stride in the UAE’s broader efforts to enhance global trade relations.

CEPA will eliminate up to 96 percent of customs tariffs across several categories, setting a new standard for trade partnerships outside WTO frameworks. This agreement aims to unlock substantial non-oil trade potential between the UAE and Serbia. In 2023, non-oil trade between the two nations reached US$122.9 million, and projections suggest that trade could exceed US$500 million over the next five years.

“This CEPA creates a vital bridge to the Balkans and Southeast Europe, opening doors for substantial economic cooperation. It’s a reflection of the shared ambition between the UAE and Serbia,” Dr. Al Zeyoudi stated after the agreement’s signing, highlighting the economic potential it presents for both nations.

Key areas of focus include bolstering trade and investment flows, fostering private-sector partnerships, and promoting knowledge exchange. The deal will enable joint development projects in critical sectors such as logistics, food security, and infrastructure, further cementing the UAE’s position as Serbia’s largest trading partner in the Gulf Cooperation Council (GCC), accounting for 55 percent of Serbia’s trade with the region.

In addition to trade, foreign direct investment (FDI) between the two countries has also increased, particularly in high-priority sectors like renewable energy, agriculture, and infrastructure. Serbia’s manufacturing capabilities, skilled labor force, and abundant natural resources are expected to complement the UAE’s economic growth objectives, while the CEPA serves as a catalyst for deeper bilateral cooperation.

This agreement also plays a crucial role in the UAE’s ambitious trade agenda, part of its broader strategy to double foreign trade to AED4 trillion by 2031. As the UAE continues to forge strategic economic partnerships globally, the CEPA with Serbia sets a promising precedent for future non-WTO agreements, driving sustainable economic growth and diversification.

• Previous Article UAE VAT Exemptions: Impact on Crypto and Investment Firms
• Next Article UAE and Jordan Sign CEPA Agreement to Boost Trade Engagement