A new Comprehensive Economic Partnership Agreement (CEPA) deal has been signed between the United Arab Emirates and Turkey with the aim to boost the value of trade related to non-oil goods between the two countries to $40 billion within the next five years, in comparison to the current trade value of $19 billion.
The CEPA deal is expected to become written as a new chapter when it comes to trade relations between the UAE and Turkey, and also will function as a moment that transforms the friendship between both countries which has been long-standing, into something that makes both friendly nations partners in their journey for growth in the future.
UAE Turkey CEPA Deal to Create Jobs, Focus on Key Sectors
The deal, signed by Abdulla bin Touq Al Marri, the Minister of Economy of the United Arab Emirates, and Mehmet Muş, the Minister of Trade of Turkey, will be able to create up to 25,000 new jobs in the United Arab Emirates and about 100,000 jobs in Turkey, across various industries and sectors by the year 2031.
The latest CEPA deal between the UAE and Turkey is also part of the UAE’s mission to boost economic relations and trade with friendly nations around the world.
In a press conference following the signing of the CEPA deal, both ministers highlighted that the deal showcases a new era when it comes to the strategic partnership between both countries which will have a positive reflection within the Middle East region as well on the global trade front as well.
The event was also attended by Thani bin Ahmed Al Zayoudi, the UAE Minister of State for Foreign Trade, who said that the CEPA deal between the United Arab Emirates and Turkey will function as a continuation in building up the momentum of trade growth and economic cooperation between both countries.
The CEPA deal between the two countries, as implemented, will see the reduction or removal of customs duties for more than 93 percent of non-oil goods that are actively traded between both countries, which also represents over 85 percent of the bilateral trade value between the countries.
Currently, Turkey is the sixth biggest trading partner of the United Arab Emirates. With the latest CEPA deal, the relationship between the two countries, which has been diplomatically strong for over 50 years now, is expected to be taken to further heights.
The CEPA deal will see its focus laid on highly important sectors for both the countries, such as construction, telecommunications, Agritech, pharmaceuticals, logistics, etc. Moreover, the deal will also open up better market opportunities within sectors related to petrochemicals and aluminum.
Talking about the latest achievement, His Highness Sheikh Mohamed bin Zayed Al Nahyan, the President of the United Arab Emirates and the Ruler of Abu Dhabi, said that Turkey has been one of the trusted and immensely valued partners of the United Arab Emirates for over 5 decades now.
He also stated that Turkey is one of the key economies in the region and is currently emerging on the global front as an entrepreneurial and highly growth-focused country with a keen eye on the future that mirrors the ideals set by the United Arab Emirates as well.
The UAE President also said that apart from promoting trade between the two countries, the CEPA will also especially focus on promoting small-scale and medium-scale enterprises in both countries and also make it easier for investments in both countries.
The agreement will also ensure that strict rules are in place to govern intellectual property rights in both countries.
Turkish President Recep Tayyip Erdoğan also spoke about the strategic deal, saying that the efforts put forward by both the UAE and Turkey are empowered by the shared history, tradition, and culture of both countries.
The deal does not only focus on contributing to the economic ties between both countries, but also adds contribution to the welfare, prosperity, and stability within the region and also the world.
Even prior to signing the CEPA deal, the trade between the UAE and Turkey has been at an accelerated pace. The trade between both countries saw a 40 percent increase just in 2022 alone, which also marks the fastest growth in trade among the top ten export markets of the UAE.
With such immense potential, combined with the new CEPA deal, the trade between the UAE and Turkey is only expected to grow in the near future, creating new jobs and better economic opportunities for businesses of all scales and sizes as well.
The CEPA deal is just one of the several economic deals and partnerships set in place between the UAE and Turkey. For instance, there was a $10 billion investment fund set up by the United Arab Emirates for proceeding with investments in Turkey back in 2021.
The investment fund brought about new investment opportunities and heightened interest in Emirati investment in Turkey.