Turkey pact to link UAE economy with over 10% of global economy: Minister
- Last updated: March 4, 2023 | 13:57
Dr Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, affirmed that the signing of the Comprehensive Economic Partnership Agreement (CEPA) with the Republic of Turkey is the culmination of diplomatic relations spanning over 50 years and the continuation of the momentum of their economic cooperation and trade growth.
He said that the signing of the fourth CEPA with Turkey today, on top of those signed with India, Indonesia and Israel, allows the UAE to enter into new markets that reach more than 2.2 billion people, including the Greater Arab Free Trade Area Agreement that was signed more than 15 years ago, serving as impetus for the UAE’s global market expansion.
He said that, according to projects, the four agreements will contribute to an over 2.4 per cent increase in the country's GDP by 2031, further driving the growth of UAE exports by adding $120 billion over the next 10 years. This will create more economic and trade opportunities, Dr. Al Zeyoudi explained, noting that, after signing the agreement with Türkey, the UAE's economy will be linked to more than 10 per cent of the global economy, ensuring significant expansion in the UAE's economy.
He added that Turkey was the UAE’s sixth-largest trading partner in 2022, recording a growth of 40 per cent compared to 2021, with UAE-Turkey non-oil foreign trade reaching $18.9 billion last year.
Dr. Al Zeyoudi added that the UAE-Turkey CEPA will see tariffs removed from 83 per cent of the commodities in the two countries, in addition to liberalising non-oil trade by 93 per cent of the commodities, adding that it will also help create a new market for the two countries in sectors such as food security, agriculture, financial technology, telecommunications, logistics, renewable energy and real estate.
He noted that the volume of trade exchange between the two countries is expected to grow to over $40 billion annually within five years, in addition to creating over 25,000 jobs, especially in the skilled labour sectors, in the UAE by 2031, with the UAE’s exports to Turkey expected to grow by 20 per cent during the next stage.
Dr. Al Zeyoudi revealed that the UAE-Turkey CEPA is expected to be ratified before the end of the second quarter of 2023.
On the UAE's future plans on the comprehensive economic partnerships front, Dr. Al Zeyoudi said that the UAE is advancing at an accelerating pace. We are in the process of finalising two new agreements with Cambodia and Georgia within the next 3 to 4 weeks, as well as two agreements with Kenya, which are 85 per cent agreed upon, he explained, adding that this serves as an important gateway to Africa.
He also hinted at an agreement with Colombia, explaining that negotiations were postponed until after the elections, and will resume soon.
Dr. Al Zeyoudi added that the UAE aims to utilise CEPAs to expand its partnerships with ASEAN countries, with negotiations already under way with Thailand and Vietnam. There are also plans to expand in Africa and South America, which would reflect positively on the UAE's trade growth, he continued.
Dr. Al Zeyoudi further revealed that the UAE is also working on comprehensive economic partnership agreements with two economic blocs in the Eurasian region, with negotiations to begin next week and be completed within 6 months, while CEPA negotiations with Ukraine will begin in April.
WAM