UAE-Serbia CEPA: A New Era of Economic Collaboration
The recently activated Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Serbia marks a pivotal moment in enhancing economic connections between the two countries. This agreement is poised to promote trade and investment flows, creating numerous opportunities across a variety of key sectors.
Overview of the UAE-Serbia CEPA
Dr. Thani bin Ahmed Al Zeyoudi, the UAE Minister of State for Foreign Trade, emphasized the significance of this agreement, stating, “The activation of the UAE-Serbia CEPA heralds a new chapter in our economic relations, creating new avenues for collaboration, investment, and trade that will benefit both our nations.” He further explained that the CEPA aims to unlock substantial opportunities that will generate jobs, bolster supply chains, and establish a vibrant business environment for both nations.
Impact on Trade Relations
The UAE-Serbia CEPA specifically targets the expansion of bilateral non-oil trade, which has already shown promising growth, reaching around $121.4 million in 2024—doubling the trade levels recorded in 2021. Looking ahead, projections suggest a significant rise in trade volume, potentially contributing approximately $351 million to the UAE’s GDP by 2031.
This anticipated growth can be largely attributed to the agreement’s provisions for reducing custom duties on over 96 percent of tariff lines. By easing these restrictions, the CEPA is expected to enhance market access and create a supportive atmosphere for private sector collaboration.
Serbia’s Role as a Strategic Partner
Serbia emerges as a crucial partner for the UAE, thanks to its diverse economy and strategic location, which serves as a gateway into Eastern Europe and the Balkans. This partnership is not just about trade; it’s also anticipated to foster increased cooperation in key areas, including renewable energy, agriculture, logistics, and technology.
Strengthening Economic Ties
The UAE stands out as Serbia’s main trading partner within the Gulf Cooperation Council (GCC), representing about 55 percent of Serbia’s total trade with the region as of 2023. This strong bilateral relationship is further reinforced by a growing influx of foreign direct investment (FDI) flowing into high-growth sectors, aligning shared economic interests between the two nations.
Leveraging Opportunities
With the CEPA now officially in force, both the UAE and Serbia have the leverage to pursue economic growth strategies that will benefit their respective populations. This agreement is integral to the UAE’s broader strategic objectives, which aim to elevate total non-oil trade to an impressive $1.1 trillion by 2031 and double the size of its economy to $800 billion within the same timeframe.
A Part of a Larger Framework
The UAE-Serbia CEPA is the tenth such agreement to be enacted, contributing to a total of 27 agreements that the UAE has concluded with various countries across the Middle East, Africa, Southeast Asia, South America, and Europe. This expansive network of partnerships reflects the UAE’s commitment to fostering global economic ties and promoting mutual growth.
