Juma Al Kait: UAE's CEPAs spur growth, build global trade bridges

Al Etihad

23-03-2025

23 Mar 2025 22:25
RASHA TABILA (ABU DHABI)Juma Mohammed Al Kait, Assistant Undersecretary for Foreign Trade Affairs at the UAE Ministry of Economy, affirmed that the Comprehensive Economic Partnership Agreements (CEPAs) launched by the UAE in 2021 have become strategic "trade bridges", extending the country's reach to global markets.Speaking at Aletihad News Center's Ramadan Majlis, titled "Comprehensive Economic Partnership Agreements: New Paths for Economic Cooperation and Development" - held in the presence of Dr. Hamad Al Kaabi, Chief Aletihad News Center Officer - Al Kait highlighted that the UAE is eager to continue extending the geographical scope of CEPA agreements, aiming to include diverse regions across the globe.Al Kait revealed that the Ministry of Economy has already finalised 20 CEPAs, while seven new deals are currently under negotiation - about to reach the legal review phase - after which they will be announced. He added that the UAE is looking to sign CEPAs with countries in Africa, Latin America, and Eastern Europe in the near future.Of the 20 CEPAs the UAE has signed so far, six are already in force, while the remaining agreements are being readied for implementation. These include deals with Costa Rica, Colombia, South Korea, Mauritius, Chile, Serbia, Jordan, Vietnam, Australia, New Zealand, Malaysia, Kenya, Ukraine, and the Central African Republic.During the majlis - moderated by Hussein Al Hammadi, Managing Editor of Aletihad News Center - Al Kait explained that the existing CEPAs cover a quarter of the world's population. This access, he said, boosts the local economy, expands the reach of Emirati products, and benefits service providers based in the UAE through the elimination or reduction of customs duties and the mitigation of non-tariff barriers.
Leadership Vision Elaborating on the driving force behind these initiatives, Al Kait said: "The vision of our wise leadership for building these partnerships is timely, especially considering the current uncertainty in global trade and the retaliatory tariffs many nations impose. This approach has given the UAE an edge in ensuring secure trade routes with numerous global partners."He pointed out that the entire spectrum of economic and service sectors in the UAE benefits from these agreements, whether in hospitality, construction, finance, logistics, transport, or professional services. By easing traditional market barriers, CEPAs allow UAE-based companies to enter key global markets with fewer hurdles, Al Kait added.Al Kait also emphasised the importance of the UAE's world-class logistical capabilities, as its global network of ports creates new commercial routes and secures them through advanced technology and streamlined customs procedures. According to him, this has helped ensure that the UAE's supply chains remain among the most stable and reliable worldwide.The Assistant Undersecretary for Foreign Trade Affairs highlighted the CEPA with India - now in effect for nearly three years - as a successful example of an economic partnership that continues to yield positive results. According to Al Kait, the UAE aims to bolster bilateral trade with India to Dh100 billion over the next two years.He added: "Since its entry into force three years ago, this agreement has yielded remarkable progress, such as spurring growth in exports and imports and offering new opportunities to small and medium-sized enterprises (SMEs) in the UAE, enabling them to tap into the Indian market."
Private Sector Al Kait emphasised that the national private sector plays a major role in capitalising on the full potential of CEPAs, opening previously inaccessible channels for cooperation. He cited their importance for several national strategies, such as the Ministry of Industry and Advanced Technology's plan to diversify the country's industrial base and expand production capacities into untapped markets.Al Kait noted that high tariffs and retaliatory measures are now common in many regions, which complicates trade relations. In contrast, he said it is increasingly challenging for any country to impose similar barriers on the UAE, thanks to its multiple partnerships. He added that CEPAs provide alternatives for the UAE in cases where individual countries decide to halt exports of certain commodities, particularly food items, thereby reinforcing the nation's food security and diversifying import chains for essential supplies.
Economic Shifts Addressing the sweeping changes witnessed by many global economies, Al Kait identified various factors influencing these shifts.Among these are geopolitical events that are reshaping international supply chains, fast-paced technological progress that is altering the nature of growth, and a global policy reorientation towards increased self-reliance and protective measures to ensure the stability of domestic industries and safeguard trade interests. He also mentioned climate change and sustainability as prime issues that have now become an inseparable part of trade and investment discussions.Al Kait pointed out that, under its wise leadership, the UAE has responded to these developments by implementing a robust set of laws and policies designed to keep pace with global shifts. He also noted that the UAE was among the first nations to fully recover from the COVID-19 pandemic, mainly due to its open stance on global trade.Al Kait added that the UAE boasts one of the best business environments in the region and globally, as evidenced by the country's continuous remarkable performance in global competitiveness indicators and other international reports.
Story of Exceptional Success "The UAE represents an exceptional success story and an exceptionally successful economic model," Al Kait said."Five decades ago, it depended almost exclusively on oil revenues. Realising that economic prosperity cannot be achieved through a single resource, our wise leadership turned to economic diversification, trade openness, and comprehensive economic partnerships. This marked the beginning of a commercial renaissance through free zones, which have successfully attracted international companies with numerous incentives and seamless logistical support that eases trade with countries around the world."According to Al Kait, the UAE has now entered a new era of foreign trade by targeting high-quality investments in specialised sectors and building a model for specialised economic and free zones - including the Abu Dhabi Global Market and the Dubai International Financial Centre - that have become magnets for leading financial institutions. These areas also include specialised technology zones and clean energy hubs, such as Masdar City.These achievements, he added, are key steps towards preparing the country to usher in the new economic era. According to Al Kait, this new economic phase is outlined in the UAE Vision 2031, an overarching framework designed to accelerate social and economic advancements and reinforce the UAE's global stature and reach.Key targets include doubling the national economy from Dh1.5 trillion to Dh3 trillion by 2031, increasing non-oil exports to Dh800 billion and raising the volume of non-oil foreign trade to Dh4 trillion.
Hamad Al Kaabi: Elevating UAE's global economic position For his part, Dr. Hamad Al Kaabi, Chief Aletihad News Center Officer, emphasised that spotlighting the CEPA programme - first introduced by the UAE in 2021 - came within the framework of Aletihad News Center's commitment to placing national economic issues at the forefront of its audience's attention.Dr. Al Kaabi said that CEPAs have become a cornerstone of the wise leadership's efforts to solidify the UAE's position in the global economy. He pointed out that these agreements play a major role in enhancing trade between the UAE and a multitude of international partners, consolidating the nation's status as a premier global trade and logistics hub.
Dr. Al Kaabi added that CEPAs will help fulfil the UAE's strategic goals for 2031, strengthening its leadership in fostering a globally open commercial environment and creating investment conditions attractive to global corporations seeking fresh markets and opportunities.