UAE GDP likely to increase by $351 million in less than 10 years

UAE exchanged a Comprehensive Economic Partnership Agreement (CEPA) with Serbia, marking the first agreement with a country, under the UAE's comprehensive economic partnership programme, that is not a member of the World Trade Organisation.

This agreement features a tariff reduction and elimination of up to 96 per cent across customs tariff lines, compared to some countries with which agreements have been signed, all of which are WTO members.

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This initiative comes in light of the significant potential to increase non-oil trade between the two friendly countries, Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade told the Emirates News Agency (WAM) following the exchange of the CEPA between the two countries.

He also said the agreement constitutes a vital bridge to the Balkans and the Southeast Europe with great economic potential, adding that it reflects the common ambition between the UAE and Serbia and contributes to launching a new era of bilateral cooperation and stimulating sustainable growth of the economies of both countries.

Dr Al Zeyoudi noted that the agreement aims to stimulate trade and investment flows between the two countries, bolster cooperation, and build private sector partnerships in both friendly countries. It also seeks to empower business communities, promote investment, and facilitate knowledge exchange, as well as activate opportunities for joint developmental projects in important sectors such as logistics and food security.

The minister added that the agreement contributes to leveraging the economic opportunities that the Republic of Serbia possesses, particularly in terms of manufacturing capabilities, skilled labour, and abundant mineral resources.

He expected that the agreement will add $351 million to the UAE's GDP by 2032.  "The total non-oil bilateral trade between the UAE and Serbia reached $122.9 million in 2023, and is expected to reach $500 million in non-oil foreign trade with Serbia over the next five years."

The minister pointed out that the UAE is Serbia's largest trading partner among the Gulf Cooperation Council (GCC) countries, accounting for 55 per cent of Serbia's trade with Gulf nations. "The UAE is currently the third-largest market for Serbian exports in the Middle East and the fourth-largest trading partner for Serbia among Arab countries and Africa, according to 2023 data."

Dr Al Zeyoudi added that FDI between the two countries have increased toward high-priority sectors, including renewable energy, agriculture, food security, infrastructure and logistics services.

The Comprehensive Economic Partnership Agreements Programme, which the UAE has been implementing since the end of 2021, is a fundamental pillar of the country's growth strategy, which aims to double the total value of foreign trade to Dh4 trillion by 2031.

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