• Home
• /
• UAE
• /
• Business

UAE: Cepas provide preferential market access to quarter of world’s population, says official

UAE is third-largest diamond trade hub after India and US

The UAE has signed 15 Comprehensive Economic Partnership Agreements (Cepa), providing preferential arrangements and market access in large economies, a senior UAE official said.

“Last week, we signed our latest Cepa with Australia, where the diamond industry is undergoing a strong revival. It brings the total number of Cepa signed to 15, of which India, Indonesia, Israel, Cambodia, Turkey and Georgia are in full effect. That means we have now secured preferential arrangement and market access to almost a quarter of the world’s population, as diamonds now contribute 5.5 per cent of the UAE non-oil trades,” said Juma Al Kait, chief trade negotiator for the UAE and assistant undersecretary for international trade affairs at the UAE Ministry of Economy.

Al Kait was speaking at the Dubai Diamond Conference (DDC), organised by the Dubai Multi Commodities Centre (DMCC). Senior UAE government officials and industry executives addressed the conference held under the theme of “Thriving Under Pressure: Navigating the New Global Paradigms.”

He noted that the UAE aims to diversify the supply chain and create new market opportunities for the private sector across every industry.

“The centrepiece of this policy is the Cepa programme, which is solidifying trade and investment relationships with key allies around the world,” said Al Kait, adding that Cepas are opening up sizeable opportunities and with more Cepas to follow in the coming months, the UAE’s trade reach will grow.

In the first half of 2024, UAE non-oil foreign trade reached Dh1.4 billion, an 11.2 per cent increase compared to the first half of 2023. It was also the sixth consecutive half-year period of foreign trade growth.

“This should be noted because this comes against a global trade growth of just 1.5 per cent compared to UAE FDI which surged 35 per cent in 2023. Our ability to attract all forms of capital, human, financial and technology is helping to create new sectors,” he added.

UAE thirdlargest global diamond hub

Juma Al Kait said the UAE’s trade in rough and polished diamonds is strong and the country is the world’s third largest global diamond trade hub after India and the US.

“In 2023, it reached $39 billion, which represents a growth of more than 4 per cent in both value and quantity. In the first half of 2024, this momentum was maintained with a total trade value of $19 billion. The UAE now ranked third in the global diamond trade after India and America, accounting for more than 15 per cent of international transactions. And the Dubai multi commodities centres continue to be at the heart of UAE’s growing influence,” he said.

He also highlighted the importance and role of Dubai Diamond Exchange, which is now the world’s largest diamond facility and boasts more than 1,200 members.

“The growth of the diamond sector in the UAE reflects our role as a global trade hub and supports our vision of economic diversification. We are embarking on a bold strategy to increase the total value of non-oil trade to Dh4 trillion by 2031 and non-oil export to Dh800 billion in the same timeframe,” Al Kait said.