ABU DHABI, 19th July, 2023 (WAM) — Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said the UAE and Türkiye are steadfast in finalising procedures related to their Comprehensive Economic Partnership Agreement (CEPA), as its enforcement date draws near. The two countries had officially ratified the agreement at the end of May 2022.
Al Zeyoudi stated that according to the approved timeframe, the CEPA would come into effect in early September, adding that it aims to stimulate the non-oil intra-trade between the two countries from the current total of US$18 billion to over US$40 billion annually within the next five years, by reducing or eliminating customs duties on 82 percent of tariffs in both countries, covering 96 percent of their traded goods.
Regarding the size of the Emirati and Turkish economies compared to the region’s total economy and their ability to stimulate trade exchange on the bilateral, regional and global levels, Al Zeyoudi affirmed that the combined population of the two countries is currently some 100 million, and they are both are among the top 30 economies in the world with a combined gross domestic product (GDP) of nearly US$1.5 trillion.
In addition, the structures of their economies in terms of the contribution of sectors to GDP are somewhat similar, especially services that account for more than 50 percent, he added, and there are unlimited opportunities for economic cooperation across various sectors in which both countries lead regionally and globally, such as services, tourism, trade, technology, industry, agriculture and infrastructure.
Speaking about investments, Al Zeyoudi said that both countries had attracted some US$360 billion in direct investments at the end of 2022, accounting for 38 percent of total foreign direct investment (FDI) inflows to West Asia, while in terms of outward investments, the UAE and Türkiye collectively invested around US$300 billion, representing around 50 percent of West Asia’s investment outflows to the rest of the world.
Regarding key areas of economic cooperation between the UAE and Türkiye, Al Zeyoudi explained that the two countries aim to step up their economic partnership to encompass all economic sectors, especially as they both possess promising enablers that drive their ability to achieve further integration and growth in their countries.
The UAE is a global trade, investment, tourist and logistics hub that facilitates trade flows around the world, and it is also among the most important destinations for international investments, while Türkiye is one of the top 10 major global trading partners of the UAE, contributing 3 percent to the UAE’s non-oil foreign trade, he added.
Data on growth in 2022 indicate that the non-oil trade between the two countries grew by more than 40 percent compared to 2021, reaching US$18.9 billion, and Türkiye is the sixth most important destination for non-oil UAE exports, while the UAE is among the top five countries that import goods from Türkiye, he further added.
Upon its implementation, the CEPA will contribute to establishing long-term partnerships between the two countries’ business communities, which will help turbocharge growth, prosperity and expansion through leveraging their strategic locations as key regional and international business hubs, Al Zeyoudi stressed.
The UAE ranks 15th among Türkiye’s top international trading partner, second among Arab countries, and first among Gulf countries, with the UAE accounting for around 50 percent of Türkiye’s trade with Gulf countries, and around 15 percent of its trade with all Arab countries, he said in conclusion.