UAE, EU Move Towards Comprehensive Economic Partnership

UAE, 11 April, 2025 : The European Union and the United Arab Emirates have agreed to launch negotiations for a free trade agreement, aiming to deepen bilateral relations and enhance economic cooperation.

The announcement followed a phone call between European Commission President Ursula von der Leyen and UAE President Sheikh Mohamed bin Zayed Al Nahyan. The proposed agreement will cover trade in goods and services, investment, and cooperation in strategic sectors such as renewable energy, green hydrogen, and critical raw materials.

According to the UAE’s state news agency WAM, the Comprehensive Economic Partnership Agreement (CEPA) aims to reduce tariffs, eliminate trade barriers, and improve market access in key sectors including advanced manufacturing, healthcare, logistics, and artificial intelligence.

The EU is the UAE’s second-largest trading partner, making up 8.3% of the Emirates’ total non-oil trade. The UAE is also the EU’s top export and investment partner in the Middle East and North Africa.

The talks come amid global trade uncertainties and reflect the UAE’s ongoing push for deeper EU engagement in the Gulf region.