Today's Edition
ABU DHABI (WAM)
The UAE’s Comprehensive Economic Partnership Agreement (CEPA) with the Republic of Georgia has officially entered into force, paving the way for stronger collaboration between the two nations to expand trade opportunities, empower SMEs, and consolidate global supply chains.
It will do so by removing or reducing customs duties on 95 per cent of tariff lines, which cover more than 90 per cent of the total non-oil bilateral trade between the two countries, eliminating unnecessary barriers to trade, and improving market access for service exports.
The UAE-Georgia CEPA is expected to more than triple the total value of non-oil trade between the two countries to US$1.5 billion within five years while adding US$3.9 billion to the UAE’s GDP and US$291 million to Georgia’s GDP by 2031.
In addition, the landmark deal is expected to substantially increase UAE exports to Georgia to reach US$1.3 billion by 2031, with key UAE exports set to benefit, including refined sugar, electrical appliances, vehicles and parts, polymers and machinery, among others.
The UAE is already Georgia’s leading trading partner in the Arab world, accounting for over 63 per cent of its total trade with the region. The agreement builds on robust and rapidly growing economic ties between the two countries that saw bilateral non-oil trade reach US$511.2 million in 2023, a growth of 6.3 percent compared to 2022.
The UAE is also Georgia’s sixth-largest global investor, accounting for 5 per cent of its total Foreign Direct Investment (FDI) inflows. Bilateral investment between the two countries currently stands at over US$1 billion. The deal aims to accelerate investment flows in key sectors, including tourism and hospitality, real estate, renewable energy, retail and wholesale, transport and logistics, manufacturing, electrical equipment and construction materials.
On entry into force of the deal, Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said, “The implementation of our Comprehensive Economic Partnership Agreement with the Republic of Georgia is another milestone in our foreign trade agenda, aimed at strengthening bilateral relations with a dynamic, resilient and liked-minded partner, strategically located in the heart of the Caucasus region, at the intersection of Europe and Asia.”
He added, “Beyond its strategic location, Georgia presents a promising market for UAE businesses to explore, with proven demand for our key exports and offering a favourable commercial landscape. We have managed to secure a balanced deal that is a win-win for both sides and one that lays the foundations for a new partnership that leverages emerging opportunities, drives investment in priority sectors and contributes to the global economic recovery.”
The Comprehensive Economic Partnership Agreement is a vital component of the UAE’s foreign trade agenda, which seeks to establish stronger, more integrated trading relationships with the most dynamic markets worldwide.
In addition to the UAE-Georgia CEPA, the UAE has signed and implemented CEPAs with India, Indonesia, Israel, Türkiye, and Cambodia and is in the process of concluding more deals with nations spanning Asia, Europe, Africa and South America.
