UAE and Azerbaijan Strengthen Economic Ties with New Trade Deal
CEPA agreement aims to enhance bilateral trade and promote investments in key sectors such as renewable energy and logistics.
The UAE and Azerbaijan have signed a Comprehensive Economic Partnership Agreement (CEPA) to strengthen their economic ties, boost trade, and deepen cooperation in several strategic areas.
The deal was signed in the presence of UAE President Mohamed bin Zayed Al-Nahyan and Azerbaijani President Ilham Aliyev.
According to estimates, the CEPA is expected to contribute significantly to the economies of both countries, with $680 million added to the UAE's gross domestic product (GDP) and $300 million to Azerbaijan's economy by 2031.
The agreement aims to enhance private sector collaboration, strengthen supply chain resilience, and promote the global expansion of small and medium-sized enterprises (SMEs).
This CEPA builds on a growing trade relationship between the two countries, with non-oil trade increasing by 43% year-on-year to reach $2.4 billion in 2024.
The UAE is also Azerbaijan's leading Arab investor, with cumulative investments exceeding $1 billion.
Speaking after the signing, UAE Minister of Foreign Trade Thani Al-Zeyoudi highlighted Azerbaijan's strategic location and economic growth, stating that the CEPA will unlock new opportunities across various sectors such as manufacturing, agriculture, automotive, logistics, and financial services.
The agreement also includes plans to expand UAE investments in energy and renewables through national companies like ADNOC and Masdar.
Moreover, there are intentions to build a joint logistics infrastructure to enhance access to broader regional and global markets.
Azerbaijan's entry into the UAE's expanding CEPA program marks another significant milestone for the country's foreign trade agenda, which targets $1.1 trillion in non-oil trade by 2031.
The UAE has already concluded 27 CEPAs with various global markets, representing more than one-quarter of the world's population.
This new partnership is part of the UAE's broader strategy to advance economic diversification through strategic international partnerships.
The deal was signed in the presence of UAE President Mohamed bin Zayed Al-Nahyan and Azerbaijani President Ilham Aliyev.
According to estimates, the CEPA is expected to contribute significantly to the economies of both countries, with $680 million added to the UAE's gross domestic product (GDP) and $300 million to Azerbaijan's economy by 2031.
The agreement aims to enhance private sector collaboration, strengthen supply chain resilience, and promote the global expansion of small and medium-sized enterprises (SMEs).
This CEPA builds on a growing trade relationship between the two countries, with non-oil trade increasing by 43% year-on-year to reach $2.4 billion in 2024.
The UAE is also Azerbaijan's leading Arab investor, with cumulative investments exceeding $1 billion.
Speaking after the signing, UAE Minister of Foreign Trade Thani Al-Zeyoudi highlighted Azerbaijan's strategic location and economic growth, stating that the CEPA will unlock new opportunities across various sectors such as manufacturing, agriculture, automotive, logistics, and financial services.
The agreement also includes plans to expand UAE investments in energy and renewables through national companies like ADNOC and Masdar.
Moreover, there are intentions to build a joint logistics infrastructure to enhance access to broader regional and global markets.
Azerbaijan's entry into the UAE's expanding CEPA program marks another significant milestone for the country's foreign trade agenda, which targets $1.1 trillion in non-oil trade by 2031.
The UAE has already concluded 27 CEPAs with various global markets, representing more than one-quarter of the world's population.
This new partnership is part of the UAE's broader strategy to advance economic diversification through strategic international partnerships.
