Dr. Thani Al Zeyoudi, the Minister of Foreign Trade, affirmed that the Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Azerbaijan represents a significant advancement in strengthening the UAE’s economic, commercial, and investment presence in the Caucasus region. This initiative also aims to enhance communication and partnerships with southern nations bordering the Caspian Sea, aligning with the UAE’s vision to boost strategic partnerships with high-potential markets.
In remarks to Emirates News Agency (WAM), he stated that the agreement creates substantial opportunities for UAE investors and businesspeople in the Azerbaijani market, paving the way for new collaboration across various vital sectors.
He predicted that the agreement could contribute approximately $680 million to the UAE’s GDP by 2031 and support the Azerbaijani economy by nearly $300 million, reflecting a reciprocal impact on sustainable growth between the two friendly nations.
The agreement encompasses high levels of tariff liberalization, reaching up to 90% for goods exchanged between both parties. This reduction is expected to enhance trade flow and facilitate access to markets, focusing on several strategic priority sectors, including energy, storage, logistics, transportation, financial services, and business sectors, which support the countries’ aims of developing future economies.
Moreover, he pointed out that the UAE is one of the largest foreign investors in Azerbaijan, with direct investments exceeding $1 billion. This figure highlights the strong economic relations between the two sides and the significant impact of these investments on the growth of the Azerbaijani economy.
He noted that there is an ambitious plan to expand Emirati investments in several key sectors, particularly in energy and renewable energy through leading national companies such as ADNOC and Masdar, aiming to enhance economic integration between the two countries and develop shared logistical infrastructure. This infrastructure will enable access to wider markets both regionally and internationally.
He emphasized that Azerbaijan is an important trade and investment partner for the UAE due to its strategic location in the Caucasus at the crossroads of trade between Eastern Europe and Western Asia, a region of growing economic significance. The Azerbaijani economy recorded 4.1% growth in 2024, with its non-oil sector experiencing notable growth of 6.3%, demonstrating economic diversification and further opportunities for collaboration with the UAE.
Al Zeyoudi also highlighted that non-oil bilateral trade between the UAE and Azerbaijan witnessed significant growth of 43% year-over-year, reaching a value of $2.4 billion by the end of the last year, representing 50% of Azerbaijan’s total trade with the Gulf Cooperation Council (GCC) countries. These figures clearly indicate the increasing momentum in economic relations between the two nations and the progress made in shared trade and investment cooperation.
He concluded that the signing of the Comprehensive Economic Partnership Agreement between the UAE and Azerbaijan marks a new milestone in the UAE’s strategy of establishing CEPA agreements, furthering its objectives to diversify trade partnerships and expand its network of economic relations both regionally and globally.