A comprehensive economic partnership agreement (CEPA) has been signed between Georgia and the UAE in order to strengthen and integrate their economic relations. The agreement, which was signed during a visit by a UAE delegation to Georgia’s capital Tbilisi, will eliminate or significantly reduce tariffs, remove non-tariff barriers, and promote trade in goods, services and investment.
Bilateral non-oil trade between the two countries was worth $468m in 2022, representing an impressive 110% growth compared to 2021. The UAE now accounts for over 63% of the total volume of Georgia’s trade with Arab countries, while its investments into Georgia represent 5% of its total FDI, making the UAE its sixth largest global investor. Talks regarding the CEPA had begun in September of the previous year.
Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, said that the successful conclusion of negotiations with Georgia represents a huge stride forward in the UAE’s foreign trade agenda and signals its ambition to build a global network of trade partners. The agreement provides a platform for joint ventures in sectors such as agriculture, transportation, tourism, renewable energy, and digital trade, and creates opportunities for knowledge- sharing that will drive long-term, sustainable growth.
Georgia’s Vice Prime Minister and Minister of Economy and Sustainable Development, Levan Davitashvili, believes that establishing a free trade regime between Georgia and the UAE will benefit both countries. He believes that Georgia’s geographic location and business environment make it the best gateway for UAE companies to the region, while the CEPA will provide extended opportunities to promote and develop different industries, as well as increase and diversify Georgian exports. The signing of the CEPA in only three rounds of negotiations is a sign of the dedication of both parties to further bolster their already well-established bilateral relationship.
The UAE’s new foreign trade agenda is a core component of the nation’s growth strategy, which seeks to double the size of the economy from $381bn to $762bn by 2030. The UAE has already signed CEPAs with India, Israel, Indonesia and Turkiye, and is set to conclude negotiations with other strategically important nations.