Brussels, Belgium — EU chief Ursula von der Leyen said Thursday that the 27-nation bloc and the United Arab Emirates had agreed to open negotiations on a trade agreement, as Brussels seeks to diversify trade away from the United States.
Emirati President Sheikh Mohammed bin Zayed Al Nahyan “and I just decided to launch negotiations on an EU-UAE free trade agreement,” the European Commission president wrote on X. “This agreement will strengthen our bilateral relations and contribute to the prosperity of the broader region.”
WAM reported that “during the call, His Highness reaffirmed the depth of relations between the UAE and EU while highlighting their joint commitment to strengthening these ties to serve mutual interests, particularly in the economic sphere.”
Sheikh Zayed said the decision to initiate negotiations on a Comprehensive Economic Partnership Agreement (CEPA) with the EU reflects a shared determination to unlock the full potential of cooperation and advance their economic, trade, and investment ties in support of development aims.
He added that once concluded, the CEPA would create new avenues for cooperation between the UAE and EU, increase trade and investment flows, and strengthen partnerships between the business communities of both sides. He emphasized that UAE-EU relations are founded on a common vision of stability, growth, and prosperity.
For her part, von der Leyen underscored the strength of ties between the UAE and EU, noting that the launch of CEPA negotiations marks a step towards a more dynamic and robust phase in their economic cooperation.
The announcement follows the signing of a Joint Statement of Intent by Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Valdis Dombrovskis, EU Commissioner for Trade, to commence negotiations on the UAE-EU Comprehensive Economic Partnership Agreement.
The EU is the UAE’s second-largest trading partner, accounting for 8.3 percent of the UAE’s total non-oil trade. In 2024, non-oil trade between the UAE and EU reached $67.6 billion, representing 3.6 percent growth compared to the previous year. The UAE is also the EU’s largest export destination and investment partner in the Middle East and North Africa.
By reducing tariffs and unnecessary trade barriers and improving market access for goods and services, the CEPA is expected to foster opportunities in key sectors such as advanced manufacturing, healthcare, logistics, and artificial intelligence, among others.
