UAE-Georgia CEPA enters into force

The UAE’s Comprehensive Economic Partnership Agreement (CEPA) with Georgia has officially entered into force, paving the way for stronger collaboration to expand trade opportunities, empower SMEs and consolidate global supply chains.

It will do so by removing or reducing customs duties on 95 per cent of tariff lines, eliminating barriers to trade and improving market access for service exports.

The UAE-Georgia CEPA is expected to more than triple the total value of non-oil trade between the two countries to $1.5 billion within five years, while adding $3.9 billion to the UAE’s GDP and $291 million to Georgia’s GDP by 2031.

In addition, the landmark deal is expected to substantially increase UAE exports to Georgia to reach $1.3 billion by 2031, driven by refined sugar, electrical appliances, vehicles and parts, polymers and machinery among others.

The UAE is already Georgia’s leading trading partner in the Arab world, accounting for over 63 per cent of its total trade with the region.

The agreement builds on robust and rapidly growing economic ties between the two countries that saw bilateral non-oil trade reach $511.2 million in 2023, a growth of 6.3 per cent compared to 2022.

The UAE is also Georgia’s sixth-largest global investor, accounting for 5 per cent of its total Foreign Direct Investment (FDI) inflows.

The latest deal aims to accelerate investment flows in key sectors, including tourism and hospitality, real estate, renewable energy, retail and wholesale, transport and logistics, manufacturing, electrical equipment and construction materials.

"We have managed to secure a balanced deal that is a win-win for both sides and one that lays the foundations for a new partnership that leverages emerging opportunities, drives investment in priority sectors and contributes to the global economic recovery," said Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.

The CEPA is a vital component of the UAE’s foreign trade agenda, which seeks to establish stronger, more integrated trading relationships with the most dynamic markets around the world.

In addition to the pact with Georgia, the UAE has signed and implemented CEPAs with India, Indonesia, Israel, Turkey and Cambodia, and is in the process of concluding more deals with nations spanning Asia, Europe, Africa and South America.