The UAE and Georgia have concluded talks on a comprehensive economic partnership agreement (Cepa), which is expected to significantly boost bilateral trade between the two countries. The Cepa will help remove or significantly reduce tariffs, remove non-tariff barriers, and promote trade in goods, services and investment. Once enacted, the agreement will be a game-changer for both countries, said Dr Thani Al Zeyoudi, UAE Minister of State for Foreign Trade. The deal is part of the UAE’s efforts to diversify its economy and boost trade and economic relations with countries around the globe. The UAE is targeting the signing of 26 Cepas to enhance its foreign trade agenda and establish a truly global network of trade partners in strategically important parts of the world. The agreement with Georgia is the latest in a string of pacts that the UAE has already signed with India, Indonesia, Israel, and Turkey.
According to government data, the value of Georgia and the UAE’s bilateral non-oil trade rose to $468 million in 2022, reflecting annual growth of 110 per cent. The UAE now accounts for more than 63 per cent of the total volume of Georgia’s trade with Arab countries. Furthermore, the Emirates’ investment in Georgia accounts for 5 per cent of the country’s total foreign direct investment, making the UAE it’s the sixth largest global investor.
The UAE is looking to increase market access and set up investment and trade joint ventures with its partners. The agreement with Georgia is in line with the UAE’s plans to double the size of its economy to Dh3 trillion ($816.88 billion) by 2030, from Dh1.4 trillion in 2021. The Emirates aims to eliminate unnecessary trade barriers and enhance trade and investment cooperation between the two countries.
The Cepa will open up opportunities for both nations to develop various industries and promote their exports. Georgia, with its free-market principles, holds considerable promise for the UAE’s exporters and investors. The two countries have prioritized sectors such as agriculture, transportation, tourism, renewable energy and digital trade, as they seek to enhance their trade relations. Levan Davitashvili, Georgia’s Vice Prime Minister and Minister of Economy and Sustainable Development believe that the agreement will benefit both countries and serve as a solid basis for further enhancement of trade and investment cooperation.
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