UAE and Türkiye forge new paths for economic cooperation, sustainable growth
Jul 19, 2023
Abu Dhabi [UAE], July 19 (ANI/WAM): The UAE and Türkiye are forging ahead with their strong and dynamic partnership, as evidenced by the recent signing of the Comprehensive Economic Partnership Agreement (CEPA). This landmark agreement opens up new avenues for sustainable growth and economic prosperity, promising numerous trade and investment opportunities for the benefit of both nations.
Under the leadership of both countries, the UAE and Türkiye have cultivated close trade and investment ties, aiming to elevate their relations to a broader partnership and drive economic development.
The CEPA, signed during a virtual summit in March 2022 with the participation of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and President Recep Tayyip Erdogan of Türkiye, has been officially ratified by their governments in preparation for its implementation.
The UAE-Türkiye CEPA heralds a new era of bilateral cooperation between the two countries that stimulates trade, increases investment flow, and creates joint opportunities in priority sectors.
In 2022, non-oil bilateral trade between the two countries surged by 40 per cent, reaching USD 18.9 billion, firmly establishing Türkiye as one of the UAE's top ten trading partners, accounting for over three per cent of the UAE's non-oil foreign trade.
Total Emirati investments in Türkiye reached some USD7.8 billion by the end of 2021, spanning several sectors, such as financial services, real estate, transportation, renewable energy, ports and logistical services.
With the implementation of the CEPA, customs duties on 82 per cent of goods and products, representing more than 93 per cent of non-oil trade, will be eliminated or reduced. Moreover, the agreement improves market access to Türkiye for UAE exporters, particularly in sectors such as construction, metals, polymers, and other manufactured goods.
The CEPA sets ambitious goals for non-oil bilateral trade, aiming to surpass USD 40 billion annually within five years. It also aims to increase Emirati exports to Türkiye by 21.7 per cent, while encouraging investments in key sectors such as logistical services, e-commerce, food security, and renewable energy.
Both countries play a pivotal role in facilitating international trade flows as vital economies, fostering regional progress and prosperity while advancing economic relations, including the establishment of multibillion-dollar investment funds and cooperation agreements in critical sectors, such as advanced technologies, logistical services, and partnerships to support the development of emerging e-commerce.
The CEPA creates a platform for exporters of goods and services to tap into these markets and the wider region, fostering collaborations and partnerships among small and medium-sized enterprises and entrepreneurs from both nations. It positions the region at the centre of international trade, serving as a catalyst and hub for global growth.
Prominent Emirati companies with major investments in Türkiye include ADQ Holding, Emirates NBD Bank, Emaar Properties, International Holding Company (IHC), the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company. (ANI/WAM)
