The UAE and Serbia have signed a Comprehensive Economic Partnership Agreement (CEPA) as they look to boost trade to $500m within five years
UAE President Sheikh Mohamed bin Zayed Al Nahyan and Aleksandar Vučić, President of Serbia, witnessed the exchange of a Comprehensive Economic Partnership Agreement (CEPA), paving the way for increased trade and investment flows and bilateral private sector collaboration.
Sheikh Mohamed bin Zayed Al Nahyan said: “The CEPA exchange with Serbia is a notable step forward in our efforts to create a network of trade agreements that will accelerate investment, promote knowledge-sharing, and create opportunities for joint ventures in high-growth sectors.
UAE-Serbia CEPA trade deal
“Serbia represents an important addition to the CEPA programme and a bridge into the high-potential region of Eastern Europe.
“The UAE-Serbia CEPA reflects our shared ambition to establish a new era of collaboration between our nations and unlock long-term, sustainable growth for both our economies.”
The CEPA builds on developing relations between the UAE and Serbia. The UAE is the third-largest market for Serbian exports in the Middle East, and increased FDI has been directed toward high-priority sectors, including renewable energy, agriculture, food security, infrastructure, and logistics.
The agreement features a tariff reduction and elimination of up to 96 per cent across customs tariff lines, compared to some countries with which agreements have been signed, all of which are WTO members.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade said the agreement constitutes a vital bridge to the Balkans and the Southeast Europe with great economic potential, adding that it reflects the common ambition between the UAE and Serbia and contributes to launching a new era of bilateral cooperation and stimulating sustainable growth of the economies of both countries.
The minister added that the agreement contributes to leveraging the economic opportunities that the Republic of Serbia possesses, particularly in terms of manufacturing capabilities, skilled labour, and abundant mineral resources.
He expected that the agreement will add $351m to the UAE’s GDP by 2032.
He said: “The total non-oil bilateral trade between the UAE and Serbia reached $122.9m in 2023, and is expected to reach $500m in non-oil foreign trade with Serbia over the next five years.”
The minister pointed out that the UAE is Serbia’s largest trading partner among the Gulf Cooperation Council (GCC) countries, accounting for 55 percent of Serbia’s trade with Gulf nations.
Al Zeyoudi added: “The UAE is currently the third-largest market for Serbian exports in the Middle East and the fourth-largest trading partner for Serbia among Arab countries and Africa, according to 2023 data.”
The UAE’s CEPA programme is a key pillar of the nation’s growth strategy, which targets $1tn in total trade value by 2031 and aims to double the size of the wider economy to surpass $800bn by 2030.
To date, agreements implemented in the programme, which was launched in September 2021, span the Middle East, Africa, Southeast Asia, South America, and Eastern Europe and encompass almost a quarter of the world’s population. The United Arab Emirates-Serbia CEPA will enter into force following the successful ratification process by both sides.
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