The UAE and Georgia has begun negotiations towards a comprehensive economic partnership agreement (CEPA), building on the pair’s health trade relationship in recent years.
Once struck, the deal with Georgia becomes the UAE’s fourth CEPA, following landmark agreements with India, Israel, and Indonesia.
High-level talks started this week in Tbilisi, the UAE Ministry of Economy said in a statement on Wednesday.
“Georgia is a dynamic, free-market economy in the heart of the emerging Caucus region, and our relationships has seen real momentum in recent years,” Emirati economy ministry Thani Al Zeyoudi said.
He added his country and Georgia have “clear economic synergies and complementarities,” particularly in sectors such as agriculture, tourism, energy, and transportation.
In the first half of this year, bilateral non-oil trade between the two nations hit $166 million, up 104 percent from the same period in 2021. Non-oil trade stood at $223 million in total last year.
These figures make the UAE account for 63 percent of Georgia’s trade with the Arab world. Mutual direct investment between the pair exceed $1 billion by the end of 2021, with the UAE being Georgia’s six largest source of foreign direct investment.
Similar to other CEPAs, the deal involves removing or reducing tariffs and improving market access between the two countries. It will help accelerate the flow of Georgia’s principal exports, including, cars, gold, and semiconductor devices to UAE industries.
The Gulf country is also working on a free trade agreement with Turkey.
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