UAE and Serbia Sign CEPA Deal, Target $500M Trade Increase
The United Arab Emirates and Serbia agree on a comprehensive economic partnership agreement to boost trade between the two countries
Sheikh Mohammed bin Zayed Al Nahyan, President of the United Arab Emirates, and Aleksandar Vučić, President of Serbia, witnessed the exchange of the Comprehensive Economic Partnership Agreement (CEPA), which paved the way for increased trade and investment flows and bilateral private sector cooperation.
Sheikh Mohammed bin Zayed Al Nahyan said: “The CEPA exchange with Serbia is a significant step in our efforts to build a network of trade agreements that will accelerate investment, promote knowledge sharing and create opportunities for joint ventures in high-growth sectors. .
UAE-Serbia CEPA Trade Agreement
“Serbia is an important addition to the CEPA program and a bridge to the high-potential region of Eastern Europe.
“The UAE-Serbia CEPA reflects our shared ambition to establish a new era of cooperation between our countries and unlock long-term, sustainable growth for both our economies.”
CEPA fosters relations between the United Arab Emirates and Serbia. The UAE is the third largest market for Serbian exports in the Middle East, and FDI has increased to high-priority sectors including renewable energy, agriculture, food security, infrastructure and logistics.
The agreement includes tariff reductions and elimination of up to 96 percent of tariff lines compared to some countries that are WTO members where the agreements are signed.
Foreign Trade Minister Dr. Thani bin Ahmad Al Zayudi said the agreement constitutes an important bridge to the Balkans and Southeast Europe with great economic potential and reflects the common ambition between the UAE and Serbia. Ushering in a new era of bilateral cooperation and sustainable development of the two countries’ economies.
UAE Serbia CEPA
The minister said that the agreement contributes to the economic opportunities of the Republic of Serbia, especially in terms of production capacities, skilled workers and abundant mineral resources.
He expects the deal to add $351 million to the UAE’s GDP by 2032.
He said: “Total non-oil bilateral trade between the UAE and Serbia is expected to reach $122.9 million in 2023, and non-oil foreign trade with Serbia is expected to reach $500 million in the next five years.”
The minister pointed out that the United Arab Emirates is Serbia’s largest trading partner among the Gulf Cooperation Council (GCC) countries and accounts for 55 percent of Serbia’s trade with the Gulf countries.
Al Zeyoudi added: “According to 2023 data, the UAE is currently the third largest market for Serbian exports in the Middle East and the fourth largest trading partner of Serbia in Arab countries and Africa.”
The UAE’s CEPA program is a key pillar of the country’s growth strategy, which aims to reach $1tn in gross trade value by 2031 and double the size of the wider economy to exceed $800bn by 2030.
To date, the agreements implemented in the program, which was launched in September 2021, span the Middle East, Africa, Southeast Asia, South America and Eastern Europe, covering almost a quarter of the world’s population. The UAE-Serbia CEPA will enter into force following a successful ratification process by both parties.CEPA will go into effect.