UAE Edition 
Egypt Edition 
Saudi Edition 
MENA <> India Corridor 
Logistics (MENA) 
Climate (MENA) 
Share
Read Full Issue 
The UAE and the EU have agreed to launch negotiations for a trade and economic partnership agreement, during a phone call between UAE President Sheikh Mohamed bin Zayed Al Nahyan and European Commission President Ursula von der Leyen, state news agency Wam reports. “Through this agreement, we aim to deepen bilateral relations and promote economic growth for the benefit of our countries and peoples,” President Sheikh Mohammed bin Zayed al Nahyan said in a statement posted on X.
Logistics, manufacturing, renewables, and AI in focus: The agreement will aim to reduce trade barriers and tariffs, and boost cooperation in key sectors such as advanced manufacturing, healthcare, logistics, and AI. Renewable energy, green hydrogen, and critical raw materials will also be areas of focus, according to an EU statement.
REMEMBER- The UAE has been chasing trade agreements with the EU and the UK separate from wider GCC agreements amid delays in talks, with Reuters reporting last year that bilateral talks are a priority.
By the numbers: The EU is the UAE's second-largest trade partner, with non-oil trade between the two reaching USD 67.6 bn in 2024, according to Wam. The UAE is also the EU’s largest export destination and investment partner in the Middle East and North Africa.
Background: The UAE has big foreign trade ambitions, aiming for AED AED 4 tn in annual foreign trade by 2031, with 75% of that target already achieved in 2024. Non-oil foreign trade exceeded AED 2.8 tn last year, with trade agreements contributing AED 135 bn to non-oil exports.
The Financial Times and Reuters also took note of the story.
IN RELATED NEWS-
New Zealand is moving to ratify its trade pact with the UAE this year, with the implementation bill for a comprehensive economic partnership agreement (CEPA) between the countries passing its first reading in parliament, according to a government statement, citing New Zealand Trade Minister Todd McClay. The agreement cuts tariffs on 98.5% of New Zealand exports heading to the Emirates, rising to 99% within three years, McClay added.
ICYMI- The two sides signed an agreement to promote bilateral investment ties last year, and a New Zealand-GCC trade agreement, finalized in October, is set to be implemented soon.
