The UAE’s Comprehensive Economic Partnership Agreement (CEPA) with Georgia has officially entered into force. The agreement aims to boost trade, support SMEs, and strengthen global supply chains.
Under the agreement, customs duties will be eliminated or reduced on 95% of tariff lines, covering more than 90% of non-oil bilateral trade. This move is expected to triple non-oil trade between the two countries to $1.5 billion within five years, with projected GDP boosts of $3.9 billion for the UAE and $291 million for Georgia by 2031.
The #UAEGeorgiaCEPA is now in effect, opening a new era of opportunity between our nations. Strategically located in the Caucasus, and with a favourable business climate that matches our own, #Georgia presents exciting prospects for our exporters, investors and entrepreneurs.
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— د. ثاني أحمد الزيودي (@ThaniAlZeyoudi) June 27, 2024
The deal is expected to increase UAE exports to Georgia to reach $1.3 billion by 2031. Key UAE exports set to benefit include refined sugar, electrical appliances, vehicles and parts, polymers, and machinery.
The UAE is already Georgia’s leading trading partner in the Arab world, accounting for over 63% of its total trade with the region. The agreement builds on robust and rapidly growing economic ties between the two countries that saw bilateral non-oil trade reach $511.2 million in 2023, a growth of 6.3% compared to 2022.
“Beyond its strategic location, Georgia presents a promising market for UAE businesses to explore, with proven demand for our key exports and offering a favourable commercial landscape,” said Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade. “We have managed to secure a balanced deal that is a win-win for both sides and one that lays the foundations for a new partnership that leverages emerging opportunities, drives investment in priority sectors and contributes to the global economic recovery.”
The UAE is also Georgia’s sixth-largest global investor, accounting for 5% of its total Foreign Direct Investment (FDI) inflows. Bilateral investment between the two countries currently stands at over $1 billion. The deal aims to accelerate investment flows in key sectors, including tourism and hospitality, real estate, renewable energy, retail and wholesale, transport and logistics, manufacturing, electrical equipment and construction materials.
In addition to the UAE-Georgia CEPA, the UAE has signed and implemented CEPAs with India, Indonesia, Israel, Turkey and Cambodia and is in the process of concluding more deals with nations in Asia, Europe, Africa and South America.