UAE and Georgia sign CEPA to boost trade

Image credit: WAM

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and Irakli Garibashvili, Prime Minister of Georgia, witnessed the signing of a Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Georgia.

The CEPA aims to double non-oil trade from $481m to $1.5bn in five years.

Strengthening economic ties

Sheikh Mohammed bin Rashid Al Maktoum emphasised the UAE’s commitment to fostering economic growth and trade with friendly nations that share the same vision of building a prosperous future.

The partnership with Georgia underlines the UAE’s dedication to stimulating international trade and supporting global economic stability in the face of current challenges.

Irakli Garibashvili, Prime Minister of Georgia, expressed gratitude to Sheikh Mohammed bin Rashid and UAE President Sheikh Mohamed bin Zayed Al Nahyan for their significant contributions to enhancing bilateral cooperation.

The CEPA is expected to accelerate capital flow into high-priority sectors, such as tourism, retail, logistics, and manufacturing, in both countries.

By removing or reducing tariffs on 95 per cent of product lines, the agreement is set to boost non-oil trade value beyond $1.5bn in the next five years.

UAE, Georgia trade

The UAE and Georgia have been enjoying growing economic relations, with non-oil trade exceeding $225m in the first half of 2023, marking a 28 per cent growth compared to H1 2022.

The total non-oil bilateral trade reached $481m in 2022, representing a 115 per cent increase from the previous year. Moreover, the UAE now accounts for over 63 per cent of Georgia’s trade with Arab countries.

Additionally, the UAE is the sixth-largest global investor in Georgia, representing 5 per cent of its total foreign direct investment (FDI). The total investment between the two countries exceeded $1bn by the end of 2021.

UAE’s global economic agreement programme

The UAE-Georgia CEPA is part of the UAE’s global economic agreement programme, aiming to deepen trade and investment ties, stimulate growth in priority industries, create jobs, and streamline market access across the Middle East, Asia, and Europe for UAE and Georgian businesses.

The agreement aligns with the UAE’s foreign trade agenda, which seeks to strengthen economic ties with strategic allies worldwide to accelerate economic recovery and secure vital supply chains.

The CEPA is expected to enter into force early next year following the ratification process on both sides.